Bexley residents are facing a five per cent rise in council tax under current plans, with the council’s projected deficit rising to over £40 million.

Bexley Council has revealed plans to increase council tax by the maximum possible amount for the upcoming financial year.

Council documents said the authority’s budget gap was projected to be £43.35m by the 2027/28 financial year.

The figure was previously cited as being £39.28m in a report from November last year.

The topic was discussed at a cabinet meeting for Bexley Council on January 29.

Council officers said in their report that the proposed balanced budget was based on the assumption that council tax would be increasing by 2.99 per cent in the upcoming financial year, as well as the 2pc Adult Social Care precept rise.

The increase stands as the highest increase in council tax that a local authority can enforce without a referendum.

Conservative Councillor David Leaf, cabinet member for resources, said at the meeting: “This will help support us to invest in services and I remain grateful to households across the borough for providing us with council tax revenues which will bring in over £140m next year.”

Cllr Leaf added that he acknowledged an increase in council tax can be challenging for residents.

He said the authority was providing £15m through its council tax reduction scheme to support those on low incomes.

Council documents said pressures such as contract inflation, given the authority spends 54pc of its budget on outsourced services, as well as difficulty in recruiting and retaining staff as reasons for the projected overspend.

Increased levels of demand for adult social care and housing were also included as contributing factors.

Conservative Councillor Teresa O’Neill, leader of the council, said at the meeting that the council had repeatedly asked the Government for a fair funding review to be carried out, but did not expect it to happen before the next general election.

She added that a new spending review could occur following the election, allowing for the projected budget gap to potentially decrease.

Labour Councillor Stefano Borella said at the meeting that the proposed budget was ‘out of control’ and cited concerns over the consistent overspend included. Cllr Leaf said in response that many local authorities were facing a similar financial challenge.

The cabinet member said: “There are particular challenges and pressures that are outlined in this report and we as a local authority are doing the best we can for some of the most vulnerable people in our society, that being children, adults and those with housing needs and pressures.

"That doesn’t come cheaply and that comes at a cost particularly in the current circumstances for a wide range of reasons.”

The final budget for the upcoming financial year, including the proposed rise in council tax, will be decided at a public cabinet meeting in February followed by a full council meeting in March.