Residents in Hammersmith & Fulham could face a major increase in the council's share of council tax if the borough needs to close a projected funding gap.
The west London council has warned that a 150% increase in its council tax element could be required in 2027/28 under current financial assumptions. The figure is a scenario being considered, rather than a confirmed increase.
Under the 150% scenario, a Band D household would pay an additional £29.11 a week on the Hammersmith & Fulham element of its council tax.
The council says the possible increase is linked to changes in the government's local government funding system and a significant reduction in central government funding.
According to figures reported by The Guardian, Hammersmith & Fulham received £150.5 million in government funding in 2025/26, but this is expected to fall to £72.4 million over the following four years.
The council is considering several options. A 100% increase in its council tax element would still leave an estimated £46.1 million budget gap, while a 125% increase would leave a projected £20.6 million shortfall.
The 150% scenario would broadly balance the budget based on the council's current assumptions.
The government has given Hammersmith & Fulham and several other councils special permission to increase council tax beyond the normal referendum threshold for 2027/28 and 2028/29.
However, the council has not yet confirmed that a 150% increase will happen. The final level of council tax will depend on future budget decisions and the council's financial position.
The issue is likely to attract attention from residents as the borough considers how to protect local services while managing reduced government funding.