Council tax 2027-28: Hammersmith & Fulham weighs a 150% rise in its share of bills

Council tax increases for 2027-28 are putting heavy pressure on the budgets of a small group of councils, mostly in London, and raising a question for everyone else about what their own bill pays for. The most striking case is Hammersmith & Fulham, which said it could raise its share of council tax by up to 150% as it tries to close a £160m budget gap, according to the Local Government Chronicle (LGC). The 150% applies to the council’s own element of the bill, not to the whole bill, and it is one of three options on the table. Most households will not see anything like that, but the proposals show how far the government’s funding overhaul could push bills in certain areas.

The councils involved say the cause is the government’s “fair funding” review, which, according to LGC, redirects central support towards higher-need, more deprived authorities. LGC reports that historically low-tax councils in London are seeing severe grant reductions, and that the government wants their bills to rise towards the national average. The Guardian reports that Hammersmith & Fulham, Westminster, Kensington and Chelsea, Wandsworth, City of London and Windsor and Maidenhead have been given powers to raise bills above the 5% cap next year.

LGC says the same six authorities have the statutory power to increase council tax by an unlimited amount over the next two years. A spokesperson for the Ministry of Housing, Communities and Local Government said: “Local authorities decide the level of council tax they wish to set, but we are clear that in doing so they should put taxpayers first.” The ministry added that it had made over £78bn available for council finances next year.

Which councils are raising council tax most

Hammersmith & Fulham has gone furthest in public. A report going to its cabinet on 12 October, as reported by LGC, sets out three options. The council has not yet made a decision. It projects its core government funding will fall by more than half over four years, from £150.5m in 2025-26 to £72.4m by 2029-30.

Figures are from the council report as quoted by the Guardian and the Evening Standard. They exclude the Greater London Authority (GLA) precept, and the shortfalls are those left by 2030-31 on current assumptions.

Other boroughs are close behind. LGC reported that Wandsworth said it could raise Band D council tax by 94%, while Kensington and Chelsea and Westminster are also looking at steep rises as they face budget cuts of up to 40%. Barnet is proposing 32% to close a projected £200m gap by 2029. Unlike the six exempted councils, Barnet needs government permission, and LGC says approval would cost each Band D household up to £438 extra.

A Band D example: what a 150% rise in the council’s share would mean

The current Band D bill in Hammersmith & Fulham is £1,519.51 a year, including a £510.51 GLA precept, according to LGC and the Guardian. Taking away the precept leaves a council element of £1,009, which is our own subtraction. A 150% increase makes that element 2.5 times larger, which gives the £2,522.50 quoted in the council’s report.

The weekly extra of £29.11 comes to about £1,514 over 52 weeks. If the GLA precept stayed the same, the full Band D bill would be about £3,033 by our arithmetic. LGC reported a different total of £3,058.54, so the final figure depends on the council’s own published numbers. The 100% option would add £19.40 a week, or about £1,009 a year.

Barnet’s proposal looks smaller by comparison, but it is still large. The £438 a year it could add for a Band D household works out at roughly £8.42 a week. Both examples are far above the 5% cap that the Guardian says applies elsewhere.

For context, Lichfield District Council, a district authority, said about £3.88 a week of an average household’s bill currently goes to its services. That is around £202 over 52 weeks. It keeps around 9% of the total bill, and the other 91% goes to bodies such as Staffordshire County Council, police, fire and parish councils. The comparison is rough, because a London borough and a district council provide different services. Even so, a £29.11 weekly rise is about seven and a half times Lichfield’s whole weekly share.

Council tax bills going up: what to do now

First, find out whether your council is one of the six with extra powers, or one such as Barnet that is asking for permission. If it is not, the Guardian says a 5% cap applies next year, but check your own council’s published budget for the exact limit and figures.

Second, take part in consultations, because several are open or about to open. Lichfield’s budget consultation covers more than 60 services and runs until Wednesday 18 November. Hammersmith & Fulham is set to launch a consultation on council tax and potential service cuts, according to the Evening Standard, and must decide on increases by December. Cabinet member Rowan Ree told residents: “We will soon ask for the views of all council taxpayers.”

Third, look at what you would lose or keep. Lichfield’s finance lead, Councillor Rob Strachan, said: “With the cost of delivering services continuing to rise, it’s more important than ever that we understand what matters most to our residents.” The consultation asks which services should be protected, increased or reduced. If your bill is likely to rise sharply, you may want to work out the extra weekly cost now and ask your council what help is available.

Your questions answered

Which councils are increasing council tax?

No council has yet confirmed a rise of this size. Hammersmith & Fulham is considering 100%, 125% or 150%, and Wandsworth said it could raise Band D by 94%. Kensington and Chelsea and Westminster are looking at steep rises, and Barnet proposes 32% subject to government permission. Windsor and Maidenhead and the City of London have the same extra powers as the others, but the sources do not give their plans.

How much is council tax going up in 2026-2027?

The sources we have do not cover the current year’s national picture. They concern decisions for 2027-28, and the Guardian says councils other than the six exempted ones face a 5% cap next year. For your own figures, check your council’s published budget or the leaflet that came with your bill.

Why are some councils allowed to raise bills so much?

According to LGC, the government wants bills in historically low-tax boroughs to move towards the national average. LGC reports that it has cut their funding and given six authorities the power to raise council tax without a limit for two years. The councils argue that the deprivation measures behind the cuts are flawed, and Hammersmith & Fulham’s Rowan Ree said it was “unrealistic” to set balanced budgets without significantly above-normal rises. The government says councils decide their own council tax levels and should put taxpayers first.