Alongside hiking council tax by nearly 5%, councillors voted to increase their salaries by 2.5%, reports Sebastian Mann, Local Democracy Reporter
Waltham Forest Council has voted to increase council tax by almost 5%, while councillors’ salaries will go up by 2.5%.
The average band-D property will be paying an extra £7.12 a month from 1st April, as the town hall looks to shore up its finances with a 4.99% council tax hike.
The Labour-run council will need to make around £23million in cuts over the coming years or be forced to declare effective bankruptcy, finance bosses previously warned.
Speaking at a budget setting meeting last night (27th February), council leader Grace Williams said there was “no viable alternative” in order for the council to “protect our vital services”.
Council tax is expected to generate around £193m over the coming year, an increase of £14m on the previous year. That will complement the £99.9m funding settlement offered by the Labour government last December.
The town hall is facing a potential shortfall of £11m across 2026/27 and 2027/28 as it stands, which “needs accounting for,” Cllr Williams added.
After voting to increase council tax and tenants’ rents, Labour councillors voted to increase their own ‘allowances’ by 2.5%.
The basic salary for a councillor will now be £13,085 – an increase of £319.
The leader’s salary will climb to £58,051 from £56,635, while cabinet members will be paid £29,025, up from £28,317.
The Conservatives voted against the raise, with group leader Councillor Emma Best saying it was wrong to “increase our pay” when the council was “putting the tough choice of paying more council tax on our residents”.
Though she opposed the hike, her allowance will be bumped up by £500 to £20,528.
Labour councillor Uzma Rasool said it was “really important” to “recognise the work” councillors did and pointed out that many members were retired.
The raise is based on guidance from the National Joint Council, which advocates for pay for public service workers, and is “well below inflation,” Labour councillor Jack Phipps told the chamber.
Members’ salaries are also subject to tax.
The council’s budget for 2025/26 totals £523m. Its largest commitment is children’s services, including support for schools and disabled youngsters, at £313.6m.
Though it raised council tax by the same amount last February, Waltham Forest has burned through its reserves over the past twelve months.
The pot has shrunk from £91.7m to around £55.7m, and could drop by a further £9m by next February.
The largest pressures on the council are social care and temporary accommodation, which take up 60% of its funds. There are an “unprecedented” 1,600 homeless families being housed by the council, while it is providing care for almost 3,500 adults.
At last night’s meeting, Cllr Best presented an amendment to the budget, which was ultimately shot down in a vote.
She proposed trimming the council’s cabinet down from ten members to six – one for each directorate – in order to free up money for road repairs and new CCTV cameras.
The Chingford ward councillor said the town hall “did not need” two deputy leaders and the Labour group should “pick one of them”.
Labour councillors Ahsan Khan and Clyde Loakes both act as deputy leaders, overseeing housing and environmental policies respectively.
Removing one deputy leader and four cabinet members, who Cllr Best said she did not want to “penalise” or “belittle,” would save £150,000, the Tories claimed.
In response, Cllr Williams said allowances should not be up for debate as each “important” role required the “best people to navigate difficult challenges”.
The Conservatives also unsuccessfully proposed reducing the number of chief officers, who advise councillors and manage departments, in order to save £400,000. That money would go towards “ensuring the survival” of the Markhouse Centre, which has been earmarked for closure.
In recent months, Waltham Forest councillors have green-lit a series of controversial cost-cutting measures.
The town hall’s council tax support scheme will be significantly reduced in a bid to boost income. Under the new policy, thousands of low-income residents – who currently pay as little as 15% of their bill – will pay up to 43%.
It has also scrapped free parking across the borough, which it hopes will generate more than £1.5m in revenue.
However, residents in Chingford warned that it could harm local businesses and did not account for the comparatively less frequent public transport.
The budget also includes provisions to close job vacancies across internal departments and incorporate artificial intelligence to “streamline” services. Councillors hope to save at least £10m in 2025/26, with further savings of £13m to come.
Waltham Forest’s council tax increase of 4.99% is in line with other north-east London boroughs, including Redbridge and Havering councils.
Despite the rocky outlook, Cllr Williams said the council had boosted the borough’s cultural standing through the development of the Soho Theatre and Forest Cinema, both in Walthamstow.
The meeting also included a tribute to the late former councillor Jennifer Sullivan, who served as a councillor between 2002 and 2006.
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