Hammersmith and Fulham council tax could rise by up to 150% as grant funding is cut

Hammersmith and Fulham Council could more than double its share of council tax in 2027/28. A Cabinet paper puts forward a rise of up to 150% to cover a sharp fall in its government grant.

The Labour-run council says the largest increase would add £29.11 each week to the bill for a Band D home. The paper says that option “broadly balances the budget on current assumptions”. Lead councillors are due to look at it next week.

Why Hammersmith and Fulham council tax could rise

Under the government’s Fair Funding reforms, the borough’s grant is expected to more than halve over four years. The council puts it at £72.4m in 2029/30, down from £150.5m in 2025/26. The reforms share money out between councils according to what they need to spend and how much they can raise locally.

The paper describes “the biggest financial challenge in living memory”. When inflation, rising costs for priority services and changes in the population are added in, the council estimates its budget gap at £160m. It is one of six councils given permission to go above the usual 5% cap on council tax rises for the next two years.

The three options for Band D bills

The figures cover only the council’s own part of the bill and leave out the Greater London Authority precept. A Band D household currently pays £1,519.51 a year in total, and £510.51 of that goes to the GLA.

Doubling the council’s share would take a Band D bill to £2,018 a year. That is £19.40 more a week, and the council would still be £46.1m short. A 125% rise would mean £2,270.25 a year, or an extra £24.25 a week, leaving £20.6m still to find. The top option would bring the bill to £2,522.50 a year.

Some London boroughs gain from the changes, including Enfield and Croydon. Westminster and Wandsworth have both warned of big increases, and Wandsworth says bills may need to go up by 94% from April.

The council says it has saved more than £150m since Labour took control in 2014. A Local Government Association peer review published in July 2025 found it “very ambitious and financially well-run”.