Hammersmith and Fulham says it would need to raise its share of council tax by 150% to cover its funding shortfall, potentially taking a Band D household’s annual bill above £3,000 in 2027.

The Labour-run borough is among four London councils permitted to exceed the usual 5% limit after government funding cuts under Labour’s Fair Funding Review. Wandsworth, Westminster and Kensington and Chelsea have also received permission. Their final increases remain unconfirmed.

The distinction between the council’s charge and the total household bill matters. London bills combine the borough’s levy with the Mayor’s precept, currently £510.51, which helps fund the Metropolitan Police and London Fire Brigade. The projected percentage rises apply to the borough element, not the whole bill.

With the mayoral charge unchanged, the projections would take Hammersmith and Fulham’s Band D bill from £1,519.51 to £3,033.01. A 100% rise in Westminster’s share would produce a total of £1,585.19; Wandsworth’s projected 94% increase would take its bill to £1,499.60. Kensington and Chelsea is consulting on a 70% rise, bringing its total to £2,436.49, alongside £65 million of proposed cuts.

Ministers argue that these councils have had “historically very low” council tax and should bring charges closer to national averages. Westminster, Wandsworth and Kensington and Chelsea are exploring a legal challenge to the funding cuts. The City of London also faces pressure to impose substantial increases under the review.

Elsewhere, Barnet is discussing permission to exceed the cap as it faces a £200 million budget gap. It would need a 32% increase, around £500 for a Band D property, to balance its books. Bromley faces a £30.5 million real-terms funding reduction by 2028/29. Lambeth is understood to have held government meetings, while Southwark has warned of difficult decisions involving services and bills. Exceptional increases for these boroughs have not been agreed; exceeding the limit normally requires a referendum unless ministers grant permission.

London Councils puts the capital’s collective funding shortfall at £5.2 billion by 2030, with rising social care and temporary accommodation demand adding pressure. Other boroughs are expected to raise their charges by at least 5% in April 2027, following an average £87 household increase in 2026.

Most projected Band D bills exceed £2,000, but not all: Westminster and Wandsworth remain below that level in the figures above, while Tower Hamlets is also expected to remain below it. Final bills will depend on councils’ decisions and Sadiq Khan’s next mayoral precept.