Lewisham residents will have to pay up to £218 extra per year in council tax after councillors voted to hike it. 

The extra costs will hit those living in Band H properties in the borough, who will now have to shell out an eye-watering £3,852.54 on council tax.

People living in properties falling under the most common council tax band C will have to pay an additional £97.30 per year.

They will face an annual council tax bill of £1,712.24 from 2023/24.

The rises were included in Lewisham’s Labour council’s budget passed at a full council meeting on Wednesday, March 1. 

Council rents will also increase 7pc, an average of £7.22 per week for flats or £2.63 per week for hostel accommodation, under the 2023/24 budget.

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The council intends to make over £12 million in cuts and council documents state that these savings “must be achieved in order to maintain a balanced budget and manage the persistent overspend.”

Any temporary shortfalls will be covered by the council’s reserves. 

Care leavers under the age of 25 will continue not having to pay council tax.

People living alone who take in a refugee will also continue to receive their 25 per cent single-person council tax discount. 

Introducing the budget to the council, Damien Egan, mayor of Lewisham, said: “Again, Lewisham residents alongside residents across the country are being asked to pay more and get less in terms of their services. […] Government cuts mean that our budget in real terms has gone from £420m in 2010 to £243m today. That is a staggering reduction.”

Amanda de Ryk, cabinet member for finance, blamed austerity for the council tax hikes. She said: “We are recommending the maximum [council tax increase] because our financial resilience has been heavily tested after 13 years of austerity funding. 

“If inflation pressures on staffing, contracts and energy prices are added to the impact of the cost of living crisis on Lewisham residents and the council, we find ourselves in an unsustainable situation of shrinking resources and increased demand for our services.”

Cllr de Ryk said that the number of people asking the council for help because they were homeless had increased by 25pc to 1,076 people last year.

The council spent £4.5m on nightly accommodation for these people, she added. 

All-Labour Lewisham Council passed the budget unanimously at a meeting on Wednesday, March 1.