Richmond residents face another five per cent hike in their council tax this year, with band D households set to pay nearly £2,400.

Richmond Council plans to raise council tax by the maximum amount allowed in April saying it will protect services for vulnerable residents.

The authority has set out plans to balance the books for 2025/26, including a proposed 4.99 per cent rise in its share of council tax – the maximum increase allowed without holding a referendum.

This includes a 2.99 per cent increase for general use and an extra 2 per cent for adult social care.

The proposed hike means band D households in Richmond would pay total council tax of £2,372.07 in 2025/26.

This includes an increase in the council's share of the bill by £89.43 to £1,881.69.

Mayor of London Sadiq Khan's share is set to increase by £18.98 to £490.38 for the average band D household to help fund police, fire and transport.

A report by council officers said the 4.99 per cent hike is needed to 'manage the council's finances responsibly over the long term'.

It said the authority is facing ongoing pressures due to spiralling demand on social care and homelessness services, inflation and 'serious, long-term reductions in local government funding'.

The authority is proposing to spend £197.5m on providing services for residents in 2025/26 overall.

The proposed budget includes an extra £7m to fund pressures in adult social care, particularly due to increasing demand and intensity of need among people requiring home care and mental health patients.

The proposals include a further £2.2m to meet rising demand in children's social care and education, which would help with the rising cost of placements for children in care, increase investment in preventative services and support pupils needing home to school transport.

Around £600,000 has been set aside to ease pressures on homelessness services in Richmond, along with £300,000 to improve waste and street cleaning services.

The council also found £6.8m it could make in savings over 2025/26 by pressing ahead with plans to 'deliver services more efficiently'.

The council has previously outlined how it intends to do make the savings, stating some would come from lowering its procurement costs, while £1.7m would come from a 'transformation' and 'service remodelling' which is an ongoing project in every council department whereby services are modernised, digitised or otherwise changed to save money.

The report said: "The administration's priorities in setting the budget are to ensure that the borough continues to bounce back from the health and economic impacts of the pandemic and offers support through the current economic climate, to promote a strong recovery, to continue to deliver on key priorities and to manage the council's finances responsibly in the light of continued uncertainty, including a continuing efficiency programme.

"Key priorities include 'fairer finances', the delivery of more affordable housing, the climate emergency strategy, investment in youth services and tackling violent crime and antisocial behaviour."

The authority has provided a breakdown of the total council tax residents in Richmond will pay if the proposed 4.99pc increase is applied, including the Mayor's share of the bill. This is summarised below:

• Band A: £1,581.38
• Band B: £1,844.95
• Band C: £2,108.50
• Band D: £2,372.07
• Band E: £2,899.19
• Band F: £3,426.33
• Band G: £3,953.45
• Band H: £4,744.14

The government lifted the referendum cap in November 2022, which means councils can raise taxes by 4.99 per cent annually without the need for it to be voted in by residents.

The council will introduce a new weekly banding scheme for the first time in 2025/26 to determine the level of council tax support low-income residents receive.

This means people's weekly income will be used to determine what discounts they get, with vulnerable households entitled to a discount of up to 100 per cent.

The changes mean 954 households will get more help with their council tax than before, while 355 households will get less.

The council's Finance Committee will consider the budget proposals next Thursday, 13 February, before they are decided at a Full Council meeting on 4 March.