Westminster City Council is facing a period of severe austerity, with council tax rises and service cuts inevitable after losing over £100 million in national government funding over the next four years. The Conservative-led authority is asking residents which services they value most to help decide what to axe, but has already scrapped universal free school meals for Key Stage 3 pupils.
Funding loss and council tax hikes
The cuts result from the Labour government's Fairer Funding Review, which will reduce Westminster's grant by 50% by 2030. Government estimates suggest council tax may need to rise by 75% to 100%, though no final decisions have been made. Councillor Paul Fisher, Cabinet Member for Value for Money and Finance, said there is "no scenario" without cuts and tax increases. "I'm using the word cuts because I want to be straight with residents," he said.
Services at risk
Statutory services like adult social care and education are ring-fenced, but other services face cuts. Temporary accommodation, often in hotels, is one of the most costly services. Cllr Fisher said "tough decisions" on who gets such accommodation will be needed. The council has already ended universal free school meals for Key Stage 3, affecting families in a borough where 43% of children live in poverty.
Political blame game
Cllr Fisher blamed the national Labour government, calling the cuts "Labour's cuts" and criticized the previous Labour administration's financial decisions. He crossed from Labour to the Tories in April 2025, claiming the previous budget was a "real problem." Labour group leader Councillor Ellie Ormsby countered that successive Conservative governments delayed reform, leaving councils with a "funding cliff edge." She noted that the Tories promised to "keep council tax low" just two months ago, now contradicting that.
Fairer Funding Review
The review aims to distribute central funding more fairly, but Westminster has historically relied on government grants due to low council tax. Cllr Fisher argued that the borough generates £2.7 billion in business rates for the government while hosting 800,000 daily visitors, incurring extra costs. Other boroughs like Kensington and Chelsea face similar losses, projecting £108 million over four years.
