Westminster Council launches budget survey as funding halves by 2029
Residents asked to choose between service cuts or higher council tax after £100m government grant reduction
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Westminster City Council has opened its largest-ever public consultation on spending priorities after government funding was cut by nearly half. The council’s grant will fall from £219m this year to £119m by 2029, leaving a £160m shortfall. From today, 200,000 residents will be asked to weigh in on which services should be protected or reduced.
The survey, running until early 2026, will inform next year’s budget decisions. Council tax may rise above the usual 4.99% cap, as the government has granted permission for an increase. The council has also pledged to save £30m through technology and artificial intelligence, though this will not close the gap.
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Why Westminster faces deeper cuts than most
Westminster argues the government’s funding formula ignores its unique pressures. While 200,000 people live in the borough, 800,000 commute or visit daily. The council also contributes £2.5bn in business rates to the Treasury each year. Cllr Paul Fisher, Cabinet Member for Value for Money and Finance, said the cuts overlook high poverty levels in parts of the borough.
These UK Government funding cuts are unprecedented and present us with stark choices and no easy options. 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.
Cllr Paul Fisher, Westminster City Council
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The council’s grant will be reduced in stages. This year, it stands at £199.5m, down £20m from last year. By 2029, it will reach £119m. Transitional support from the government softens the blow slightly, but the council says the cuts still force difficult decisions.
What happens next
Residents can complete the survey online or via post until the consultation closes in early 2026. The results will feed into the council’s draft budget, expected to be published in late 2026. A final decision on council tax and service changes will be made by full council in February 2027.
Even if council tax were doubled, Westminster would still have one of the lowest rates in England. The council says it has no choice but to seek public input, as savings alone cannot bridge the £160m gap.
Questions this report answers
+How much will Westminster’s government funding be cut?
Westminster City Council’s grant will fall from £219m to £119m by 2029. This £100m reduction, combined with rising costs, creates a £160m budget gap. The government is phasing the cuts over four years.
+Can Westminster raise council tax to cover the shortfall?
Yes, the government has allowed Westminster to raise council tax above the 4.99% cap next year. Even a 100% increase would leave it among the lowest rates in England, but the council says this alone cannot close the £160m gap.
+How can residents have their say on the budget?
Westminster City Council has launched a survey asking residents to rank services by importance. Responses will shape the 2027/28 budget. The consultation runs until early 2026 and is available online or by post.
+When will the council make final budget decisions?
The draft budget will be published in late 2026, with a final vote by full council in February 2027. The council must decide which services to cut or protect, and whether to raise council tax beyond the usual limit.
News London Desk
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