London Councils Hit by Cyber Attack, Billions in Tax at Risk

The IT infrastructure of three major central London councils has been compromised by a cyber attack, creating a significant threat to government revenue. The affected councils include Kensington & Chelsea, Westminster, and Hammersmith & Fulham, which jointly handle substantial financial transactions. This cyber incident, which began in late November with Kensington & Chelsea, has halted essential local authority searches required for property sales. Consequently, the flow of billions of pounds in stamp duty, which amounted to £1.5 billion through these three councils in the 2024-25 tax year, is now at risk of not reaching the Treasury. Beyond financial implications, the attack is causing considerable delays in planning applications. This disruption means some households may have to wait until Christmas to commence home renovations. Legal experts highlight that the ongoing IT issues are preventing many purchase and remortgage transactions from moving forward, impacting the property market.