Hammersmith and Fulham Council anticipates a significant rise in its Council Tax base for the 2026/27 financial year, projecting an increase of 3,422 Band D equivalent properties. This growth is attributed to a combination of new developments, an improved collection rate, and the implementation of premiums on second homes and long-term empty properties.
The projected Council Tax base for 2026/27 now stands at 91,726 Band D equivalent properties, an increase from 88,304 in the previous year. This expansion is expected to generate an additional £3.48 million in income for the borough.
A key factor in this financial uplift is the improved collection rate, which has risen from 97% to a projected 98%. This enhancement reflects ongoing investment in the council's revenue collection services. The report clarifies that this 98% collection rate is measured over the lifetime of the debt, rather than solely 'in year' collection rates, indicating a sustained improvement in recovery.
New properties are also contributing to the rise in the tax base. Approximately 620 units are currently under construction across various sites, expected to be added to the tax base during 2026/27. Additionally, around 600 properties are anticipated to be added in 2025/26, including approximately 400 dedicated student dwellings, which receive a 100% exemption. After accounting for different completion dates, this is estimated to equate to an additional 1,220 properties, resulting in an increase of 1,410 Band 'D' equivalents.
The council is also implementing premiums on second homes and long-term empty properties. A 100% premium on second homes has been in effect since April 1, 2025. As of October 2025, 2,160 properties are subject to the second home premium, and 474 properties are being charged a long-term empty premium. These measures are designed to generate further revenue and encourage these properties back into use, contributing to safer and cleaner communities.
The Council Tax Support Scheme for 2026/27 will continue to offer 100% support for the most vulnerable residents, representing a £10.27 million investment. The council's ethical debt collection policy is central to this support, aiming to balance financial responsibility with compassion. Recovery practices are designed to be fair, respectful, and sensitive to individual circumstances, promoting inclusion by offering accessible support options like payment plans and hardship schemes to help households manage debt sustainably and reduce the risk of long-term poverty cycles.
Furthermore, a new 25% discount for veterans living in the borough is planned, coinciding with the 80th anniversary of VE Day. Veterans holding an HM Armed Forces Veteran Card will be eligible for this additional reduction on their Council Tax. This discount is estimated to impact the tax base calculation by approximately 306 Band D equivalents.
The Full Council, which convened on Wednesday, 28 January 2026, approved these figures as part of its statutory duty to set the Council Tax base. The report also delegates authority to the Executive Director for Finance & Corporate Services to determine the business rates tax base for 2026/27. Further details on the Council Tax Support Scheme can be found in the Council Tax Support Scheme 2026-27 document. The full report detailing the Council Tax Base and Collection Rate can be accessed here.