All Borough Residents Get Warning of Looming Tax Rise
H&F Council writes to every household about impact of funding changes
An unwelcome sight on doormats across the borough. Picture: H&F Council
October 19, 2026
Hammersmith & Fulham has issued one of its starkest warnings in years: sweeping changes to the way councils are funded mean the borough is set to lose a substantial portion of its annual budget, with consequences that will be felt across local services unless residents, councillors and MPs can persuade the government to rethink its approach.
At the heart of the issue is a new national funding formula that removes significant resources from councils with historically low council tax rates and redistributes that money elsewhere in England. The intention, ministers say, is to push councils such as H&F, Westminster, Kensington and Chelsea and Wandsworth towards raising their council tax to the national average. For H&F, the impact is severe. Officials estimate the cut could equate to losing as much as 40 per cent of the borough’s £222 million annual budget. Neighbouring boroughs have already warned residents of potential council tax increases of unprecedented scale: up to 188 per cent in Wandsworth and 200 per cent in Westminster.
H&F leaders are clear that this is not a crisis of their own making. They oppose the government’s approach and have been working closely with the borough’s three MPs to challenge the reforms. Legal advice was sought on whether the cuts could be contested through the Sustainable Communities Act, as Wandsworth and Westminster are attempting. The conclusion, however, was blunt: such a challenge is unlikely to succeed. The council says it will not spend public money pursuing a case that experts believe would fail.
Instead, H&F is preparing for the worst while continuing to fight for a fairer settlement. The borough’s long-running Ruthless Financial Efficiency programme has already delivered £156 million in savings since 2014, a record praised in a recent independent peer review that found the council financially well run and consistently able to deliver efficiencies. This year, officials say, further record cuts will be made using new technology and innovative approaches. Yet even with these measures, the scale of the government’s reduction means savings alone cannot close the gap.
The numbers are stark. Inflation, rising demand for services and the funding cuts together leave H&F facing a budget shortfall of around £160 million over the next four years. By law, the council must set a balanced budget annually. Even a 100 per cent increase in council tax would still leave a £46 million gap by 2029–30. To close the gap entirely, council tax would need to rise by 150 per cent — a level the council describes as a last resort and one it will only consider after exhausting every other option.
The borough’s commitment to value for money remains unchanged. H&F currently has the third lowest council tax in the country while funding free home care, a dedicated Law Enforcement Team, extensive CCTV coverage and a pioneering free breakfast scheme in primary schools. Protecting these services, leaders say, is a priority. But difficult choices now lie ahead.
Residents are being asked to help shape those choices. Every council taxpayer in Hammersmith & Fulham will receive a letter via Royal Mail containing unique survey codes. The council is inviting taxpayers to take part in an independent survey, run by research company Survation, asking which services matter most and what should be protected as the borough navigates the financial pressures ahead. Each taxpayer in a household can respond using their unique QR code or passcode, and the survey takes around ten minutes to complete. Responses are confidential and will be reported only in aggregate.
The council says the feedback will play a crucial role in determining future priorities and informing its upcoming proposal to government under the Sustainable Communities Act. The survey closes at midnight on Sunday 15 November.
As H&F faces one of the most challenging financial periods in its recent history, leaders insist they will continue to fight for a fairer deal while preparing responsibly for the consequences of the government’s reforms. They are urging residents to take part in the survey and help shape the future of local services at a moment when every voice carries weight.
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