Bexley residents will see their council tax rise by 4.99 per cent from April, with the average household paying £2,155 a year.

Bexley Council has agreed to raise its council tax in order to address a projected overspend of £39 million by 2028.

Council officers said in their report that the tax hike could bring an additional £8 million of revenue to the authority.

The rise represents the greatest increase that the council could issue without a referendum.

The authority had the eighth highest annual council tax bill in London for band D properties last year, according to data from London Councils.

The topic was discussed at a Bexley Council meeting on March 6.

Conservative Councillor David Leaf, cabinet member for resources, said uncertainties such as inflation and Covid had led to the council increasing several of its fees and charges.

Cllr Leaf said at the meeting: “I am grateful to residents across the borough for their efforts they take to pay their bills and we also make sure we support those on the lowest incomes with our council tax support scheme, worth around £15 million.”

Council officers said the authority would be investing £333.8m on local services over the next year.

This included £62m on BexleyCo, this authority’s housing development arm.

The Labour Group put forward an amendment to the proposed budget which included allocating £3.5m to the council’s housing developer to build more affordable housing schemes.

Labour Councillor Anna Day said there were 578 households in temporary accommodation under the council’s care, which included 1,007 children.

Cllr Day said at the meeting: “We’re letting our residents down across the board on housing. Be it if they’re shunted into temporary accommodation at the back of beyond, breathing in mould spores or a disabled person stuck in flats with a broken lift.”

Labour Councillor Stefano Borella also criticised the authority’s recent rating on its special educational needs department, calling it a ‘political failure’.

The provision was given the lowest possible rating by Ofsted last month, with the report finding many children had educational, health and care plans which were ‘well out of date’.

Baroness O’Neill of Bexley, leader of the council, said the inspection was carried out on the council’s partnership with the South East London Integrated Care Board, not solely the authority. She said the work to resolve several of the issues raised in the report had not been fulfilled before inspectors arrived.

The upcoming budget will also reportedly spend £55m on providing social care for 5,500 children and young people in the borough.

Conservative Councillor Lisa Moore said the number of children in care in Bexley had risen from 259 last year to 294 at the end of February.

Cllr Moore said at the meeting: “Tonight’s budget recognises the challenges ahead and it aims to navigate them with prudence and responsibility, while always ensuring the wellbeing of Bexley’s children and young people.”

Bexley Council voted at the meeting to reject the Labour Group amendment. The authority voted to pass the budget proposed by its cabinet.