Bexley Council tax will almost certainly rise by 3.99 per cent this year - the maximum amount allowed.
The hike would cost the average family £57-a-year, taking tax for Band D properties from £1,445.52 to £1,503.20.
Councillors say it's necessary because of the withdrawal of a government grant, new responsibilities for local London authorities, and a commitment to the National Living Wage.
A spokesman said: "Cabinet members believe they have little choice but to take the opportunity offered by the Government for an extra two per cent tax increase to help meet this, on top of the 1.99 per cent already allowed.
"While welcome, the extra two per cent will only go part of the way to meeting the extra costs the council faces."
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Bexley Council has to save £56m by 2019/20, on top of the £63m it has already saved.
Council leader Teresa O'Neill said: "We have plans to make £31m of these savings, but still have to find a further £25m.
"We will continue to give priority to our vulnerable residents, but we will need to increase council tax, make more tough choices and draw money from our reserves."
Cabinet member for finance and corporate services Cllr Don Massey said: "By 2020 all councils will have to rely on raising their own revenue."
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