{"id":126422,"date":"2026-10-04T11:45:45","date_gmt":"2026-10-04T10:45:45","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=126422"},"modified":"2026-10-04T11:35:51","modified_gmt":"2026-10-04T10:35:51","slug":"residents-could-face-a-150-tax-hike","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/residents-could-face-a-150-tax-hike\/","title":{"rendered":"Residents Could Face a 150% Tax Hike As London Council Weighs Options"},"content":{"rendered":"\n

Hammersmith and Fulham Council is considering raising its share of council tax by as much as 150% in 2027\/28 after a sharp reduction in central government funding. The increase would add \u00a329.11 a week to the bill for a Band D household <\/strong>and, under the council\u2019s current assumptions, would broadly balance its budget.<\/p>\n\n\n\n

The Labour-run west London authority says it is facing what its finance report describes as the \u201cbiggest financial challenge in living memory\u201d. According to The Guardian, the council received \u00a3150.5 million in government funding in 2025\/26, but that figure is set to fall to \u00a372.4 million over the next four years under the government\u2019s \u201cfair funding<\/strong>\u201d review.<\/p>\n\n\n\n

The change forms part of a wider overhaul intended to direct more funding towards areas judged to have greater need and weaker capacity to raise money locally. Hammersmith <\/strong>and Fulham<\/strong>, which has historically kept council tax relatively low, is among six authorities given powers to raise bills above the usual 5% cap next year.<\/p>\n\n\n\n

Three Council Tax Scenarios Set Out in Finance Report<\/strong><\/h2>\n\n\n\n

The council\u2019s report presents three possible increases for its own element of council tax, excluding the Greater London Authority precept. Each option is designed to reduce the gap between falling government support and the cost of maintaining current services.<\/p>\n\n\n\n

According to the Evening Standard<\/a>, a 100% increase<\/strong> would take the Hammersmith and Fulham element of Band D council tax to \u00a32,018 a year. That option would generate an additional \u00a3113.2 million by 2030\/31 but would still leave a \u00a346.1 million budget shortfall. For a Band D household, the increase would amount to \u00a319.40 a week.<\/p>\n\n\n\n

A 125% rise<\/strong> would increase the Band D figure to \u00a32,270.25 a year. The council estimates that this would generate \u00a3138.7 million in additional income by 2030\/31 while leaving a remaining shortfall of \u00a320.6 million. The weekly increase for a Band D household would be \u00a324.25.<\/p>\n\n\n\n

Under the largest scenario, a 150% rise<\/strong> would take the council\u2019s Band D element to \u00a32,522.50 a year. It would generate \u00a3163.9 million in additional income by 2030\/31 and, on the council\u2019s current assumptions, broadly close the budget gap. The weekly increase would be \u00a329.11. The report does not state that these are the only options available. The council<\/a> is also considering further savings <\/strong>and plans to consult residents before a final decision is made.<\/p>\n\n\n\n

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You could pay 150% more council tax in Hammersmith and Fulham under Labour\u2019s \u201cfair funding\u201d review.

And it\u2019s not only H&F \u2014 1.7 million Londoners could be affected by this.

Councils like Westminster, Kensington and Chelsea, Wandsworth, the City of London, and Windsor and\u2026<\/p>— Mani Basharzad (@ManiBasharzad) October 3, 2026<\/a><\/blockquote>