A London Borough Warns of a 150% Council Tax Rise
Hammersmith and Fulham’s cabinet says it may have to impose a 150% rise in its share of council tax, according to a budget report due on Monday. At Band D that is an extra £29.11 a week in 2027/28, about £1,000 a year. Its government funding falls from £150.5 million this year to £72.4 million over the next four years.
The arithmetic in the report is the argument. A 100% rise would cost £19.40 a week and still leave a £46.1 million shortfall; 125% would cost £24.25 and leave £20.6 million; only 150% — raising an extra £163.9 million by 2030/31 — “broadly balances the budget on current assumptions”. The borough currently has the third-lowest council tax in England, which is precisely why it is exposed: the government’s “fair funding” review, introduced last year, redirects money towards places hit hardest by austerity, and aims to bring historically low-charging councils up towards the national average. Councillor Rowan Ree, the cabinet member for finance and reform, said the reduction “could be equivalent to losing as much as 40 per cent of our total annual budget of £222 million” while demand and costs for essential services keep rising, and that he does not support the policy but must present a legally balanced budget. Six councils have already been allowed to breach the 5% referendum cap, Wandsworth and Westminster among them, and neighbouring boroughs have warned they may need rises of 188% and 200%. The housing ministry says it has made over £78 billion available for council finances next year, mostly unringfenced, and that it is fixing an outdated system “so funding goes where need is greatest”. Watch Monday’s published report.