# London local government funding crisis > Live situation record from CLSTR: https://clstr.news/situations/london-local-government-funding-crisis > Updated: 2026-10-22T00:00:00.000Z. Sources: 6. Developments: 2. London local authorities are facing severe financial pressures driven by central government funding reforms. Individual councils have begun proposing measures to mitigate budget shortfalls, such as Waltham Forest Council considering a 10% reduction in council tax support for vulnerable residents and Hammersmith and Fulham Council warning of potential council tax increases of up to 150% by 2027/28. In response to the proposed Fair Funding Review, leaders from Wandsworth, Westminster, Kensington & Chelsea, and Richmond have formally challenged the Treasury. These councils argue the redistribution of resources will strip hundreds of millions of pounds from the capital. Specific projected impacts include Wandsworth facing a 40% annual reduction by 2029, Westminster anticipating a £160 million funding gap, and Richmond facing a projected 58% drop in core funding by 2028/29. Council leaders have indicated that these reductions will necessitate service cuts and increased local taxation. ## Timeline ### 2026-10-22: London councils challenge government over proposed funding cuts Four London councils are challenging government funding reforms at the Treasury, warning that cuts totaling hundreds of millions of pounds will force service reductions and higher council taxes. 5 sources. https://clstr.news/cluster/london-councils-challenge-government-over-proposed-funding-cuts ### 2026-10-01: London councils face budget pressures amid proposed tax changes London councils, including Waltham Forest and Hammersmith and Fulham, are facing severe budget constraints, leading to proposed cuts in tax support and warnings of massive council tax increases. 2 sources. https://clstr.news/cluster/london-councils-face-budget-pressures-amid-proposed-tax-changes --- Cite as: London local government funding crisis. CLSTR, https://clstr.news/situations/london-local-government-funding-crisis