London Borough Warns of 150% Council Tax Hike Amid Funding Cuts
Hammersmith and Fulham calls its situation the 'biggest financial challenge in living memory' as central government funding changes force drastic options.
A prominent Labour-controlled London borough has raised the prospect of a 150% council tax increase, citing severe pressure from changes to central government funding that it says represent the gravest fiscal threat the council has faced in decades.
Hammersmith and Fulham's cabinet outlined the potential measure in a report set for publication Monday, warning that residents in Band D properties could face an additional £29.11 per week in council tax charges by the 2027/28 financial year if the increase were implemented in full to preserve existing service levels.
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The council described the situation as the "biggest financial challenge in living memory," language that signals how seriously local officials view the squeeze created by the new funding settlement from Westminster. The warning underscores a widening tension between central government fiscal policy and the capacity of local authorities — particularly those in high-cost urban areas — to deliver statutory services.
While the 150% figure represents an extreme scenario rather than a confirmed decision, its inclusion in an official cabinet report reflects the depth of the budget gap the borough believes it faces. Local councils across England have increasingly flagged financial distress as grant funding has shifted and demand for services has grown.
The Hammersmith and Fulham warning is likely to intensify debate over how the government's funding settlement affects urban Labour councils and whether the current local government finance model is sustainable. Continue reading at Business | The Guardian.
