The Cabinet of Hammersmith and Fulham Council met on Monday 09 February 2026 to discuss and approve the council's revenue budget and council tax levels for 2026/27, alongside a four-year capital programme and capital strategy. Key decisions included an increase in Council Tax, approval of the Housing Revenue Account budget and rents, and the allocation of the Dedicated Schools Grant for the upcoming academic year.

Revenue Budget and Council Tax Levels 2026/27

Councillor Rowan Ree, Cabinet Member for Finance and Reform, presented the council's Revenue Budget for 2026/27, outlining an update on the Medium Term Financial Strategy. The budget aims to maintain strong financial governance and resilience, protect core services, and support prosperity across Hammersmith and Fulham. A balanced budget was proposed, including £9.5 million in efficiencies.

A key decision was the approval to increase the Hammersmith & Fulham element of Council Tax by 2.99%, alongside a 2% Adult Social Care precept levy. This increase, which equates to an additional £27.37 per annum for a Band D property, is essential for funding rising costs and protecting services. The council highlighted its record of keeping Council Tax low, with five cuts or freezes in the last twelve years, and maintaining one of the most comprehensive Council Tax Support Schemes in the country, providing £9 million in support to residents.

The report also detailed the impact of the Fair Funding Review 2.0 and the Business Rates Reset from April 2026, which will result in lower funding levels from central government. Transitional funding relief of £6.0 million in 2026/27 is included to mitigate some of this impact.

The Cabinet recommended the approval of the balanced budget for 2026/27 to Full Council, along with the proposed Council Tax increases and the Medium-Term Financial Strategy.

Four Year Capital Programme 2026-30 and Capital Strategy 2026/27

Councillor Rowan Ree also introduced the report on the four-year Capital Programme and Capital Strategy. The council plans to invest £452.2 million over the next four years to develop and enhance its assets, including its housing stock, schools, and public realm.

Key investments include:

• Upgrades to the council's 12,000 housing stock, focusing on lifts, heating, and climate-friendly improvements.
• Development of 298 new dwellings, with 218 designated as affordable housing.
• Completion of a new Civic Campus facility to improve council service delivery and provide community facilities.
• Upgrading school facilities to enhance educational opportunities.
• Continued pre-restoration works for Hammersmith Bridge, with anticipated funding from the Department for Transport and Transport for London.

The Cabinet approved the General Fund Capital Programme budget of £135.5 million for 2026/27-2029/30 and the Housing Revenue Account (HRA) Capital Programme of £318.8 million for the same period. The Capital Strategy 2026/27 and the annual Minimum Revenue Provision policy statement for 2026/27 were also approved.

The Housing Revenue Account (HRA) Budget (2026/27), Rents & Service Charges (2026/27) & HRA 10 Year Business Plan (2026/27 - 2035/36)

Councillor Frances Umeh, Cabinet Member for Housing and Homelessness, presented the Housing Revenue Account (HRA) budget proposals for 2026/27. The report outlined changes to rent levels and service charges, alongside an updated HRA 10-year Business Plan.

The budget aims to preserve housing services, build new homes, invest in existing stock, rebalance capital and revenue maintenance, and deliver a modern, efficient housing service. A key decision was the approval of a rent increase of 4.8% from April 2026, in line with national policy (CPI + 1%), equating to an average weekly increase of £6.69 for tenants. Service charges will also see an average weekly increase of £1.52. Conversely, charges for heating and hot water are proposed to decrease.

The HRA 10-year Business Plan includes plans to build 198 new homes and invest £0.94 billion in existing stock and decarbonisation programmes. The council committed to maintaining minimum general reserves of £5 million.

School and Early Years Budget (Dedicated Schools Grant) 2026/27

Councillor Alex Sanderson, Deputy Leader (with responsibility for Children and Education), presented the report seeking approval for the 2026/27 Dedicated Schools Grant (DSG) budgets. This included the Schools Block, Central Services Schools Block, and Early Years Block.

The Schools Block budget of £127.775 million was confirmed by the Department for Education, representing a 1.58% per pupil increase. A transfer of £1.262 million (1.0% of the Schools Block) to the High Needs Block was approved to support special educational needs expenditure. De-delegation budgets for maintained mainstream schools totalling £0.564 million and education functions budgets of £0.285 million were also approved.

The Central Services Schools Block budget was set at £1.758 million, a reduction of £0.182 million from the previous year. The Early Years Block budget is £24.854 million, with an additional £0.991 million for Maintained Nursery School Supplementary Funding.

Treasury Management Strategy Statement 2026/27

Councillor Rowan Ree presented the proposed Treasury Management Strategy Statement and Annual Investment Strategy for 2026/27. The report outlined the council's policies for managing investments and ensuring the security and liquidity of those investments, demonstrating compliance with the Local Government Act 2003 and statutory guidance.

Key recommendations included approval of the borrowing and investment strategies, delegation to the Strategic Director of Finance to manage cash flow, borrowing, and investments, and approval of the Prudential Indicators and the Annual Investment Strategy. The strategy anticipates a reduction in interest rates over the coming years, with further cuts in the Bank Rate expected.

Article 4 Direction - Small Houses In Multiple Occupation

Councillor Andrew Jones, Cabinet Member for the Economy, introduced the report seeking approval to prepare an Article 4 Direction for small Houses in Multiple Occupation (HMOs). This measure aims to control the proliferation of small HMOs, which have been a concern for residents due to their impact on local amenity and community cohesion.

The Cabinet approved the making of an Article 4 Direction to remove permitted development rights for the change of use from a Class C3 (residential) to a Class C4 HMO. This will require planning permission for such changes of use, allowing the council to assess applications and ensure minimum standards are met regarding room sizes, parking, and waste collection. A £50,000 budget was approved for a robust evidence study to support the direction and define its geographic scope. Authority was delegated to the Chief Planning Officer to make a 'non-immediate' Article 4 Direction, with final confirmation requiring Cabinet approval after a statutory consultation period.

Key Decisions List (To Note)

The Cabinet noted the Key Decisions List for February 2026, which outlines proposed key decisions to be made by Cabinet and Cabinet Members. These included decisions on the Article 4 Direction for small HMOs, the Capital Programme, Revenue Budget and Council Tax Levels, the School and Early Years Budget, the HRA Budget, and the Treasury Management Strategy Statement. Several other key decisions were also noted, covering a range of areas including housing development, school refurbishments, and public health services.