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London Labour council warns it may raise council tax by 150%
The council says a 150% rise would add £29.11 a week for Band D households as government grant cuts halve its funding.
On Monday, Hammersmith and Fulham council's cabinet will report that it may impose a 150% council tax rise on residents, costing Band D households an additional £29.11 weekly in 2027/28 to maintain current services.
Labour's 'fair funding' review, introduced last year, caused the west London council to lose more than half its government grant, cutting funding from £150.5m in 2025/26 to £72.4m over the next four years.
Cabinet member for finance and reform Rowan Ree said the council is 'facing the biggest financial challenge in living memory,' even as a 100% tax increase would leave a £46.1m budget shortfall.
Conservative leaders in Westminster, Kensington and Chelsea, and Wandsworth urged a rethink in letters to Andy Burnham, though Ministers argue the review brings bills into line with national averages.
The Ministry of Housing, Communities and Local Government said authorities must 'put taxpayers first' when setting tax levels, while councils including Hammersmith and Fulham have been granted powers to raise bills above the 5% cap next year.