Greenwich residents are facing a 4.99 per cent rise in their council tax, with the average household projected to pay £1,920 a year.

The increase comes as the authority attempts to tackle a predicted £54million budget deficit by 2028.

Council documents for a cabinet meeting on March 5 showed that the increase would bring in an additional £7million of income to the authority.

The increase means that households in band D would be paying an overall sum of £1,920.36 a year from April.

Officers said in their report: “The future resourcing of local authority services is uncertain. With a fundamental review of local authority financing delayed until 2025/26 at the earliest, the local government funding that authorities will be depending on in the medium term is currently unknown.

"Any increase in council tax provides an opportunity to build upon the investments made and build some financial resilience into services.”

The 4.99 per cent figure, the maximum possible without a referendum, is derived from a 2.99 per cent rise in general council tax as well as a 2 per cent hike in adult social care.

The additional 8.6 per cent increase in the Mayor of London’s precept equates to an overall council tax increase of 5.8 per cent for Greenwich residents.

The tax hike comes alongside the authority’s plans to introduce £33.7million worth of cuts for the upcoming financial year.

These would have an effect on a variety of public services including leisure centres, street cleaning, children’s centres and libraries.

Revisions to the authority’s council tax support scheme are also proposed, with modelling to redetermine whether households are entitled to the scheme providing the council a potential £1m a year in savings.

The Greenwich Conservative Group has outlined a proposal linked to the planned cut to ensure residents receiving a 100 per cent discount on their council tax are protected from the change once the council has reached its planned level of savings.

The planned council tax increase will be discussed at the cabinet meeting on March 5. The item will then be brought to a vote at the full council meeting the following evening.