London Council Tax Crisis: 150% Rise Warning for Residents 2026

Council tax in London could skyrocket as Hammersmith and Fulham council warns of a potential 150% increase, blaming central government cuts. This unprecedented rise would see Band D households paying an extra £29.11 per week by 2027/28, sparking concerns about affordability and local services.

Why Is Hammersmith and Fulham Considering a 150% Council Tax Rise?

The Labour-run council says it is losing more than half of its government grant under the fair funding review, introduced last year to redirect cash from affluent areas to those hit hardest by austerity. The review aims to level up funding but has left councils like Hammersmith and Fulham facing severe shortfalls. With powers to raise bills above the 5% cap, the council argues that without such a rise, maintaining current services would be impossible.

How Would This Affect Residents?

For a Band D household, the current annual bill is £1,519, including the £510.51 Greater London Authority (GLA) precept. A 150% rise would add approximately £1,514 per year, bringing the total to over £3,000. This could place a significant strain on household budgets, especially amid the cost-of-living crisis.

Comparison of Council Tax Rates

Note: Figures are illustrative and based on average rates.

What Services Are at Risk?

Without the increase, the council claims it would be forced to cut essential services such as adult social care, children's services, waste collection, and road maintenance. The report by Councillor Rowan Ree, cabinet member for finance and reform, highlights that the council is "facing the biggest financial challenge in its history."

Government Response and Controversy

Ministers argue that the fair funding review will force councils with historically low council tax levels to bring bills in line with national averages. However, critics say this disproportionately affects London boroughs, which have lower council tax rates but higher living costs. The six councils given powers to exceed the 5% cap—Hammersmith and Fulham, Westminster, Kensington and Chelsea, Wandsworth, City of London, and Windsor and Maidenhead—are all in affluent areas, raising questions about the fairness of the review.

Key Takeaways

• 150% council tax rise proposed by Hammersmith and Fulham council.
• Band D households could pay an extra £29.11 per week by 2027/28.
• Funding cuts under the fair funding review are blamed for the shortfall.
• Six London councils can exceed the 5% cap to balance budgets.
• Residents face potential cuts to essential services if the rise is not implemented.

What Happens Next?

The council's cabinet will discuss the report on Monday, and a public consultation is expected. If approved, the rise would take effect in 2027/28. Residents are urged to have their say during the consultation period.

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