Hammersmith and Fulham Council's financial management has received high praise following a Local Government Association (LGA) Finance Peer Challenge. The review, conducted in April 2025, highlighted the council's effective leadership, value for money, and industrial strategy.
The council is proactively planning for future financial challenges, with the Medium-Term Financial Strategy (MTFS) projecting a budget gap of £43.9 million by 2028/29. The organisation's leadership recognises that this future budget challenge requires a different response, with transformation featuring more significantly in future years, backed by enhanced capacity and capability.
At a Cabinet meeting on 14 July 2025, Councillor Rowan Ree, Cabinet Member for Finance and Reform, presented the findings, noting the positive feedback from the peer review team. The team commended the council's highly visible and effective political and officer leadership
and its strong focus on Value for Money and Ruthless Financial Efficiency.
This focus is evidenced across a range of services, from the chief registrars' work on additional income generation to a commercial arrangement supporting a neighbouring borough with CCTV provision.
The LGA Finance Peer Challenge Final Report also acknowledged the council's self-awareness and proactive planning for future financial challenges. The report stated that the council recognises its future financial challenge will require a different response and is continuing to plan for this change.
The review made seven recommendations, including:
- Articulating the council's overall approach to transformation.
- Extending the Medium-Term Financial Strategy scenario planning analysis.
- Sharing learning from the council's work on economic growth through Upstream London.
The peer team recommends that the council extends the MTFS scenario planning analysis to include optimistic and pessimistic forecasts of future demographic and demand pressures.
Upstream London is an innovation district in Hammersmith and Fulham, aiming to create a hub for science, technology, engineering, maths, media, and medicine businesses. The council's leadership and effective working with public and private sector partners, including on economic growth, has important learning for the wider sector. 'Upstream London' is an exemplar of strong political leadership, and a proactive approach, which has significantly benefited the borough and its residents.
Councillor Ree defended the council's scrutiny processes in response to concerns raised by Councillor Adronie Alford, Opposition Spokesperson for Housing, and Councillor Jose Afonso, Leader of the Opposition. Councillor Alford expressed concerns about the strength of the Policy and Accountability Committees, feeling there was not enough time given to the Opposition to scrutinise items in depth. Councillor Afonso also shared concerns about scrutiny, saying some meetings were not well attended. Councillor Stephen Cowan, Leader of the Council, highlighted the democratisation of the process through the creation of seven scrutiny committees and resident commissions.
The action plan to implement the recommendations from the FPC was scheduled to be brought to the Policy and Oversight Board for review and ongoing monitoring on 16 July 2025.
Transformation programme leads will periodically report programme objectives and delivery plans to SLT, DMTs, Leadership Forum and the lead Cabinet Member for Finance and Reform.
