London Labour council warns it may raise council tax by 150%
Summary
Hammersmith and Fulham council in London may raise council tax by up to 150% by 2027/28 due to large cuts in government funding. The council is losing more than half of its government grant because of a new funding formula that shifts money from wealthier to poorer areas, forcing some London councils to increase council tax significantly to keep services running.Key Facts
- Hammersmith and Fulham council faces a potential 150% council tax increase to balance its budget.
- This increase means Band D households could pay about £29 more per week by 2027/28.
- The council’s government funding will drop from £150.5 million in 2025/26 to £72.4 million over four years.
- The new funding formula, called the “fair funding” review, redistributes money from richer areas to regions with more social needs.
- London councils like Westminster, Kensington and Chelsea, and Wandsworth also have powers to raise taxes above the normal 5% limit due to funding shortfalls.
- A Band D household currently pays £1,519 yearly in council tax, including a Greater London Authority charge.
- Hammersmith and Fulham council claims it has already cut costs deeply while supporting economic growth and jobs in the borough.
- Some council leaders say the government’s way of measuring deprivation is flawed and does not fully reflect local needs.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
