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Westminster Warns Council Tax Could Rise More Than Half as Grant Is Cut

The council says a government fair funding reallocation that shifts cash to more deprived areas will leave it facing deep cuts or big local tax rises to balance the books.

Overview

  • Citing figures published this week, Westminster says its central grant will fall from about £219 million to roughly £119 million by 2029/30 under the government’s fair funding changes.
  • The council published an illustrative calculation showing that doubling the borough element of council tax would push a Band D bill from about £1,048 to roughly £1,610, an overall rise of about 54 percent.
  • The government has given Westminster a two‑year power to exceed the usual 5 percent council‑tax cap, signalling that affected councils may be expected to raise more revenue locally.
  • Westminster collects more than £2.5 billion a year in business rates but retains only a small share of that money, limiting its ability to make up the shortfall from local revenues.
  • The council will consult its roughly 210,000 residents this summer on service priorities and willingness to pay higher bills and the Local Government Association says councils across England face a wider £7 billion shortfall.