Hammersmith and Fulham warns of 150% council tax rise to maintain services

Why This Matters

• Hammersmith and Fulham residents face a potential weekly council tax increase of nearly £30, making it far harder to afford housing and living costs in one of London’s most expensive boroughs.
• The warning highlights the deepening financial strain on local authorities across England, particularly those run by Labour, as central government funding continues to be squeezed.
• If the council proceeds, it could set a precedent for other boroughs to consider similarly large rises, escalating the national debate over local government funding adequacy.

Background

Council tax is the main local tax in England, set by local authorities to fund services such as refuse collection, social care, parks and libraries. Central government grants have been reduced significantly over the past decade, forcing many councils to raise tax or cut services. Hammersmith and Fulham is a London borough that has traditionally been able to keep council tax relatively low, but the council says the latest funding settlement leaves it with no sustainable options.

Key Perspectives

Hammersmith and Fulham Council: The council’s cabinet report warns that without a 150% rise, it cannot maintain current service levels. It describes the financial challenge as the most severe in living memory and attributes it directly to central government cuts under the new funding settlement. Critics and residents: The report itself has not yet been debated or scrutinised. Residents and opposition groups may challenge the necessity or scale of the proposed rise, questioning whether efficiencies or alternative funding sources could be found.

What to Watch

• Publication of the full cabinet report on Monday, which may include detail on what services are at risk and any savings already made.
• The council’s public consultation process and any formal vote by full council before the rise can be implemented.
• Response from central government, including whether the Ministry of Housing, Communities and Local Government will offer additional support or challenge the proposal.