“‘London Labour council warns it may raise council tax by 150%’”
What actually happened
Hammersmith and Fulham council has published a report modelling three scenarios for 2027/28, after losing the majority of a government grant under Labour's "fair funding" review. The council received £150.5m in government funding in 2025/26, but this will be cut by more than half to £72.4m over the next four years. The 150% figure is the most extreme of those scenarios, the one that would balance the budget outright.
Key facts
- Hammersmith and Fulham council's cabinet has concluded in a report due to be published on Monday that such a rise would cost Band D households an additional £29.11 a week in 2027/28.
- A household in Band D currently pays £1,519 annually, including the £510.51 City Hall surcharge, known as the Greater London Authority (GLA) precept. Verified against independent council-tax data showing the current Band D figure as £1,519.51.
- A 150% increase in the Hammersmith and Fulham council tax element would mean £2,522.50 a year at Band D, which would broadly balance the budget on current assumptions. That's the borough's own share only, excluding the GLA precept, meaning the real total Band D bill would move from £1,519 to roughly £3,033, a rise of about 100%, not 150%.
- Two lower scenarios were also modelled: a 100% increase in the council tax element would mean £2,018 a year at Band D, leaving a £46.1m shortfall, while a 125% increase would mean £2,270.25, leaving a £20.6m shortfall.
- Hammersmith and Fulham, along with Westminster, Kensington and Chelsea, Wandsworth, City of London, and Windsor and Maidenhead councils, have been given powers to raise bills above the 5% cap next year to balance its budget in the wake of cuts.
What to watch for
Watch whether the final 2027/28 settlement lands closer to the 100% or 150% scenario, since the council itself says 150% is the figure needed to "broadly balance the budget." Also watch other London boroughs under the same fair-funding squeeze, since Westminster, Kensington and Chelsea and Wandsworth leaders have already pushed back on the formula, and watch government's response given MHCLG insists councils must "put taxpayers first" when setting rates.
