Hammersmith and Fulham Council faces £160m budget gap by 2030 due to funding cuts
Hammersmith and Fulham Council faces a projected £160 million budget deficit by 2030-31, driven by significant reductions in central government funding. Councillor Rowan Ree, Cabinet Member for Finance and Reform, stated that changes to funding allocations mean that Hammersmith and Fulham loses over half of our grant from central government.
Councillor Ree acknowledged the significant financial challenges
during a Full Council meeting, as detailed in the Public reports pack. He revealed that if the council were to rely solely on council tax rises to bridge the gap, it would require an increase of 150%.
To address this, the council is already running council-wide transformation programmes to streamline the way the council operates
and will be implementing dramatic cuts to back office functions
as part of next year's budget setting to create a leaner, more responsive council.
The council will not be relying on tax rises alone
to bridge the budget gap.
Councillor Ree also stated that the council is undertaking the largest resident engagement exercise in this borough's history to determine the services that matter most to residents.
He urged everyone to submit their views
as the council will be putting together a budget that protects the services that residents value most while reducing the size of the council overall.
The council is also exploring options to expand its £5 million Green Investment scheme. Councillor Ree explained that the aim is to make sure that as many people in our borough can take advantage of these benefits.
He described the scheme as a rare win, win, win. It's a win for residents who can invest in their own communities, earning returns while they do so. It's a win for the council who can carry out much needed capital projects in a more affordable way than through traditional borrowing. And the biggest winner of all is our local environment.
Councillor Stephen Cowan, Leader of the Council, emphasised the council's commitment to financial efficiency and transparency, noting that detailed information had been communicated to 94,000 households. He also highlighted the council's efforts to lobby the government on funding changes, stressing that council tax rises would be a last resort. The council has had a number of meetings with ministers and Whitehall officials at the highest level
to challenge the government on funding changes, though he noted that proposals under the Sustainable Communities Act do not create a right to appeal against the Fair Funding Scheme, or confer any power on a council to require government to reopen or overturn its national funding formula.
The projected budget gap was revealed during a public question session where residents voiced concerns about potential council tax increases. Further details on the council's financial position and plans can be found in the Agenda frontsheet.