Hammersmith and Fulham council, a Labour-controlled authority in London, warned on Monday that it may raise council tax by 150 percent to maintain current services after central government cuts under a new funding settlement.

The council's cabinet concluded the increase would cost Band D households an additional £29.11 per week in 2027/28. The authority described the situation as the "biggest financial challenge in living memory."

The warning reflects the impact of government funding reductions on local authority budgets. Hammersmith and Fulham is among councils facing reduced central support as Westminster implements a new settlement for local government finance.

A 150 percent rise would roughly triple current council tax bills for affected households. The scale of the potential increase underscores the fiscal pressure facing English councils dependent on central government funding allocations.

The report, due for publication Monday, sets out the council's assessment of its financial position under the new settlement terms. The specific figure of £29.11 per week additional cost for a Band D property provides a concrete measure of the impact on residents if the full increase takes effect.