Westminster Council is writing to 200,000 residents and businesses to ask which council services they'd least like to see cut, as it plans next year's budget amid an "unprecedented" £ 100 million drop in central government funding over the next three years. A consultation warns the borough faces a £ 160 million budget shortfall by 2029, and that council tax would need to rise by 200% to close that gap if nothing changes.
Cllr Paul Fisher, cabinet member for finance, said it's important residents and businesses respond, since the decisions taken next year will shape council tax proposals for years to come. He said the government cuts are unprecedented and present "stark choices and no easy options," and that the council needs to ask residents directly what services matter most to them and whether they'd accept higher council tax to protect them. He said the council will keep pressing government, but there's no scenario avoiding savings, noting Westminster has over 200,000 residents but 800,000 people entering the city daily, and contributes over £ 2.5 billion in business rates to national government, none of which is reflected in the funding cuts.
The article notes Westminster currently has the second-lowest council tax in the country (Band D at £1,047 including the £510 GLA precept). Under Labour's Fairer Funding Review, Westminster is among six London authorities (alongside Kensington & Chelsea, Hammersmith & Fulham, Wandsworth, City of London, and Windsor & Maidenhead) facing the steepest funding cuts. These six will also be exempt from the usual 5% council tax cap, meaning bills could rise well above the national limit, with ministers citing their "historically very low bills" as justification for two years of extra flexibility. Residents in these boroughs are also expected to face the government's new mansion tax on homes over £ 2 million, due to take effect in April 2028.
You can read the Standard's article by Rachael Burford in full here.
Central London residents asked what services they want scrapped amid 200% council tax rise warning
Westminster Council is writing to 200,000 residents as it plans next year’s budget in the wake of an ‘unprecedented’ £100 million drop in central government funding
Paul Fisher, cabinet member for finance, explains:
“It's so important that residents and businesses respond. The decisions we have to take next year will have major implications for years to come, including what increase in council tax gets proposed.
“That’s why we need to ask our residents some straight questions - what council services do they care most about, and would they be prepared to pay more in council tax to offer some protection against service cuts.
“We will keep fighting for Westminster residents and pressuring the government, but the reality is there is no scenario in which we do not have to make savings. More than 200,000 residents live in Westminster, but 800,000 people enter our City every day.
"Westminster also provides over £2.5 billion to the national government in business rates. None of these unique features to the City are recognised in these cuts.”
