West London Council Passes Balanced Budget with Controversial Tax Increases
Hammersmith and Fulham Council has officially approved a balanced budget for the 2026/27 financial year during its inaugural meeting at the newly refurbished Civic Campus town hall. The budget package includes a combined 4.99 percent increase to both the council tax share and social care precept, sparking heated debate among council members.
Opposition Challenges Fee Hikes and Housing Record
Conservative opposition members strongly criticized the planned increases to various fees and charges within the budget. Opposition Leader Cllr Jose Afonso launched a scathing attack on the Labour administration's housing record, describing the condition of many social homes as "a disgrace" and referencing a 2021 Ombudsman report that named the council the worst in England for damp and mould issues.
"When you strip away the rhetoric you find this is a council raising charges on everything it can think of," Cllr Afonso declared during the debate. "Stripping support from the most vulnerable, and hoping nobody notices the black hole that is opening up beneath our feet."
The opposition leader specifically highlighted the introduction of a new requirement for residents to obtain licenses to sell items from their front gardens, quipping about "those poor lemonade stands" and questioning how such regulations could foster entrepreneurship.
Significant Government Funding Reduction
The budget approval comes against a challenging financial backdrop, with Hammersmith and Fulham facing a substantial £23.5 million reduction in government grants and retained business rates following the Fair Funding Review. Despite this significant funding cut, the council managed to propose a balanced budget through the tax increases and identified £9.5 million in savings through service efficiencies and income generation measures.
Council Leader Stephen Cowan opened the debate by defending the budget, stating: "This budget will make this borough stronger, safer and kinder, and it will work for people we were elected to serve." He accused the previous Conservative administration of leaving a "poor economic inheritance" when Labour took power in 2014, noting that the council has since made £156 million in savings and received praise in an independent peer review for financial competence.
Tax Impact and Special Dispensation
The 4.99 percent increase to council tax and social care precept will result in Band D property owners paying an additional 92p per week, generating approximately £4.4 million in additional revenue. This brings the annual council tax for a Band D property to £1,009 before the Mayor of London's precept is added.
Notably, Hammersmith and Fulham is among several councils granted special government dispensation to exceed the 4.99 percent ceiling for two specific years: 2027/28 and 2028/29. The borough maintains its reputation for relatively low council tax rates, having been the third lowest in the country for 2025/26.
Planned Investments and Political Sparring
The budget papers detail numerous planned investments for 2026/27, including school breakfast clubs, enhanced Law Enforcement Team operations, and the flagship free Home Care programme for elderly and disabled residents. These initiatives form part of what Cllr Cowan described as the council's mission to "improve our environment, protect our treasured biodiversity, and tackle climate change."
The debate grew increasingly contentious as Cllr Cowan attacked Conservative proposals for a "military-style" bridge next to Hammersmith Bridge, claiming their £20 million estimate was far below the £250 million needed to repair the existing Grade II*-listed structure. "This lot are playing the same game that the Conservatives have always played on Hammersmith Bridge," he asserted.
Cabinet Member for Finance and Reform Cllr Rowan Ree responded to opposition criticism by welcoming what he called Cllr Afonso's "late conversion to the anti-austerity agenda" while accusing the Conservatives of "rank hypocrisy" given previous Tory government cuts to local authority funding.
Budget Approval and Future Implications
The budget was ultimately approved along party lines, with Labour members voting in favor and Conservatives opposing. This council meeting marked the final session before local elections scheduled for May 7, adding political significance to the budget debate.
The Civic Campus project on King Street, which hosted this historic meeting, is expected to be fully completed by summer, featuring not only the renovated town hall but also restaurants, workspaces, and a new cinema. As Hammersmith and Fulham moves forward with its financial plans, the debate highlighted ongoing tensions between funding essential services, managing government cuts, and addressing critical housing issues in one of London's wealthiest boroughs.
