The government's new funding formula aims to compel councils, including H&F, to raise their council tax to the national average. This change also affects neighbouring boroughs such as Westminster, Kensington and Chelsea, and Wandsworth. For H&F, the potential cut represents a significant portion of its £222 million annual budget. Councils in Wandsworth and Westminster are reportedly warning of potential council tax increases of up to 188% and 200%, respectively.
Hammersmith & Fulham Council is opposing these changes and is working alongside its three local MPs. While legal advice was sought regarding challenging the cuts through the courts, it was deemed unlikely to succeed, and therefore public funds will not be spent on such action. The council is also preparing for the financial impact, having saved a record £156 million since 2014 through its 'Ruthless Financial Efficiency' programme, which has been independently reviewed as financially sound.
Despite ongoing efficiency savings, the scale of the government's funding reduction means these measures alone will not be sufficient to close the projected budget gap. The council faces difficult choices as the cost of running essential local services increases due to inflation driven by national and global events. The combined impact of government cuts and inflation leaves an estimated budget gap of around £160 million over the next four years. The council is legally required to set a balanced budget annually.
For context, a 100% increase in council tax would still result in a budget gap of £46 million by 2029-30, with a 150% increase needed to close it completely. Council tax increases are considered a last resort, to be implemented only after all other savings options have been exhausted. The council is committed to maintaining its position as the best value council in Britain.
The council's 'Ruthless Financial Efficiency' programme has already contributed to the third lowest council tax in the country, while continuing to fund services such as free home care, a dedicated Law Enforcement Team, extensive CCTV coverage, and a free breakfast scheme in local primary schools. Efforts will continue to find further savings to protect these services and minimise council tax increases.
Hammersmith & Fulham Council is writing to all council taxpayers to invite them to participate in an independent survey conducted by Survation. The survey, which takes up to 10 minutes to complete, seeks views on valued services and priorities. Unique survey codes will be sent via Royal Mail, with each household member able to respond. The survey closes at midnight on Sunday, 15 November. All answers are confidential and will be reported in aggregate.
