Hammersmith and Fulham Council Accused of Overspending From Reserves

Council faces criticism for using reserves to balance the 2025/26 budget, amid rising taxes and funding cuts.

Hammersmith and Fulham Council Accused of Overspending From Reserves
Hammersmith and Fulham Council Accused of Overspending From Reserves

Hammersmith and Fulham faces possible bankruptcy. The council approved its budget for 2025/26. They increased council tax by 88p a week.

An opposition leader criticized the council’s spending, saying they are using reserves too quickly. She thinks they are avoiding financial trouble.

Council Leader Stephen Cowan discussed the budget and wants to focus on key areas including crime, health, schools, and housing. He calls it a careful plan. The opposition leader disagreed with the national budget. She claims it hurts the UK economy.

The council’s budget passed with the tax hikes. The council tax rose 2.99 percent. Social care tax rose another 2 percent.

Hammersmith and Fulham’s tax rate ranks third lowest. They have cut or frozen it five times, and many homes get tax discounts. They are one of few to offer a 100% discount for people who need it most.

Education and children’s services face cuts. Government funding dropped since 2010/11, going from £164m to £132m for 2025/26. An aging population makes things harder and the economy feels slow, too.

The council invests extra money in 2025/26 and also plans savings. Key investments include community safety. Adult social care gets more funds and they will also invest in homelessness programs.

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