Hammersmith and Fulham residents facing rare council tax hike

By Ben Lynch, Local Democracy Reporter

Hammersmith and Fulham council – which boasts of its proud record in keeping council taxes low – is set to increase it by 4.99 per cent.

It would be the maximum percentage allowed for the year ahead, amid what it describes as ‘difficult’ times for local government finances.

However, the council said it had been able to put forward a balanced budget for 2024/25, and intends on investing more in its services than will be cut or sought via additional income.

The proposals, which form part of the council’s 2024 Medium Term Financial Strategy, were presented during Tuesday night’s (January 23) Policy and Oversight Board meeting. They will now go to cabinet, before full council next month for final sign-off.

The recommended council tax increase, two per cent of which is the adult social care precept, will be a relative rarity for a local authority which has either frozen or cut the tax in five of the past nine years.

Cllr Rowan Ree, cabinet member for finance and reform, told committee members the council’s finances were well managed, and that it was able to generate a surplus last year, at a time when many other local authorities were struggling.

“Residents should be reassured their services are being well looked after and being well funded,” he said. “It’s only possible to do that because we have this approach of ruthless financial efficiency.”

According to council documents, the local authority is looking to pump £10.7 million additional funding into services from adult social care to environmental work, while recouping £8.1m from a combination of savings and new income.

Examples given of where it is hoping to claw back some money include redesigning holiday food provision for children, and introducing new charges under its environmental services arm.

The local authority says that since 2014/15, it has delivered £118m in ‘efficiencies’, via actions such as reducing overheads and reviewing how it procures services.

It adds this has enabled it to avoid making cuts to frontline services, with various new initiatives, such as abolishing home care charges, implemented in that time.

Hammersmith and Fulham has become known for its low council tax rates. Its charge for those living in Band D properties is currently the third-lowest in the country, when compared to other local authorities.

Asked during the meeting to comment on the concerns around the level of Government funding, Cllr Ree said: “Going forward, it’s going to get tougher and tougher, and we’re going to be having to find even more money while providing the services that residents rely on so much.”

Pictured top: Hammersmith and Fulham council offices (Picture: Google Street View)