Hammersmith and Fulham Opts for Maximum Council Tax Increase
Says that balancing budget is getting increasingly difficult
Council tax in the borough set to remain as third lowest in the country
January 24, 2025
Hammersmith and Fulham is proposing a council tax increase of 2.99 per cent for 2025/26 as the West London borough looks to balance its books for the year ahead. The social care precept will add a further two per cent bring the rise to the maximum allowed with the holding of a local referendum
It is also putting forward a balanced revenue budget for 2025/26, a feat the local authority’s cabinet finance member said is getting ‘harder and harder every year’. Hammersmith and Fulham has the third-lowest council tax rate in the country, and has cut or frozen it five times in the last 10 years. It also has an extensive council tax support scheme, with almost four in ten households receiving some form of discount. It is one of only three London councils to offer a 100 per cent discount for those most in-need.
Several local authorities in the capital have raised significant concerns ahead of setting their budgets for 2025/26. Newham Council, for example, is seeking Government approval so it can raise council tax by 9.99 per cent, and is facing a projected budget gap of £151 million over the next three years.
In a report prepared for Tuesday night’s (21 January) Children and Education Policy and Accountability Committee meeting, Hammersmith and Fulham revealed it will be putting forward another balanced budget. The paper also noted the planned council tax increase.
Tuesday night was the first of the council’s budget scrutiny sessions, with each assessing the proposals for a different department. More are planned over the next month or so, with a Full Council meeting on 26 February penned in to vote on the overall package.
For the Children and Education services, £2.4m of investment is proposed as well as £1.1m of ‘efficiencies’. The investments listed include funding to further develop Family Hubs, support for frontline social work and work to improve school attendance records.
‘Savings’, which are a combination of cuts and additional income, include from retendering contracts for travel care and a programme designed to prevent families splitting up. At the meeting, Cllr Rowan Ree, Cabinet Member for Finance and Reform, told the committee revenue funding from the Government was down from £164m in 2010/11 to £132m for 2025/26, a drop the council was having to mitigate alongside challenges such as an ageing local population and a ‘sluggish’ national economy.
He pointed to some examples of new funding announced by the Government for councils, including an extra £2 billion for social care and general services and £1bn for the Household Support Fund. In total Hammersmith and Fulham is proposing £12.3m of additional investment and £5.1m of efficiencies for 2025/26. Key areas of investment include £3.4m for community safety and social inclusion through funding for the council’s Law Enforcement Team and Gangs Unit, £2.8m for Adult Social Care and £1.2m for homelessness.
Cllr Ree praised Cabinet members and officers for continuing to find efficiencies across the council. He said, “I know it gets harder as the low-hanging fruit has been picked years ago, but we are a constantly evolving council. We are constantly trying to find the most effective and efficient ways to provide services so that not only do residents get the best service but they get it at the best price as well.”
Jacqui McShannon, Executive Director of People, also raised the ability of the department to demonstrate improvements while undergoing reforms. “Over the last few years we have demonstrated that we can reform services, that we can deliver efficiencies, and that we can reduce and manage spend while delivering continuous improvement and strengthen practice.”
Ms McShannon also drew attention to some of the achievements over 2024/25, such as the ‘Outstanding’ Ofsted rating for the council’s Children’s Services.
“It’s really heartwarming to know that what you do does have that influence and impact on children, empowering children to thrive,” she told the committee. Ms McShannon noted some challenges facing the department, such as changing demographics and the cost-of-living, though said the team remains ‘ambitious’.
“We remain aspirational and steadfast in our determination that the whole system works together to benefit outcomes for children and young people so that they have excellent experiences and enhanced life chances.”
The next budget scrutiny meeting is on Monday (27 January), when the Housing and Homelessness Policy and Accountability Committee is due to review the proposals.
Ben Lynch - Local Democracy Reporter