London Labour council warns it may raise council tax by 150%
Hammersmith and Fulham council in London is warning of a potential 150% council tax increase due to significant cuts in government funding. The council claims the new 'fair funding' formula introduced by the Labour government creates an unsustainable financial burden.
Why it matters
This highlights the tension between central government redistribution policies and the fiscal autonomy of local authorities, potentially impacting residents' cost of living.
Angela Rayner set new funding rules last year to redistribute cash from richer to poorer areas. Photograph: Thomas Krych/Zuma Press Wire/Shutterstock Angela Rayner set new funding rules last year to redistribute cash from richer to poorer areas. Photograph: Thomas Krych/Zuma Press Wire/Shutterstock Local government London Labour council warns it may raise council tax by 150% Hammersmith and Fulham says it faces ‘biggest financial challenge in living memory’ as government cuts bite
Prefer the Guardian on Google A flagship Labour authority has warned it may have to impose a 150% council tax rise on residents to maintain current services following central government cuts under a new funding settlement.
Hammersmith and Fulham council’s cabinet has concluded in a report due to be published on Monday that such a rise would cost Band D households an additional £29.11 a week in 2027/28.
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