Bexley residents are facing a 4.99 per cent council tax increase, meaning the average household would pay £2,155 a year.

Bexley Council has outlined plans to increase its council tax by the greatest amount possible without a local referendum.

The tax hike comes as the authority faces a budget gap of £39 million by 2028, according to council documents.

Officers said that the council tax increase could bring an extra £8 million in for the authority.

The council cited increased energy costs and demands in social care as current stress factors, as well as wider issues such as the cost of living crisis and war in Ukraine.

Council officers said in their report: “The council is carrying levels of unprecedented financial risk and there is no room for complacency. The long-term impacts of the economic situation and demographic pressures are uncertain and unrivalled in comparison to previous years.”

They added: “Work continues to further reduce financial risk across all council services and departments and there is an ongoing need to identify further saving, efficiency and transformational opportunities or income streams across the medium-term financial strategy.”

The authority said a balanced budget for the upcoming financial year had been achieved thanks to the planned council tax increase as well as Government grants.

The Government announced a £600 million package of additional funding to local authorities in January, with council officers estimating Bexley would receive just under £2 million of this sum in grants.

The 4.99 per cent increase is based on a 2.99 per cent rise in general council tax alongside a 2 per cent hike in adult social care.

An additional 8.6 per cent increase in the Mayor of London’s precept means Bexley residents would see an overall council tax increase of 5.8 per cent. This rise would see band D properties in the borough spending £2,155.04 a year on council tax from April.

Data from London Councils showed Bexley Council had the eighth highest annual council tax bill in London for band D properties last year, at £2,037.76.

Kingston topped the list with a bill of £2,247.60, while Westminster was the cheapest at £913.78.

The proposed council tax increase for the upcoming year will be decided at a Bexley Council meeting on March 6.