What is the impact of the cyber attack on London councils?

The cyber attack has crippled the IT systems of Kensington & Chelsea, Westminster, and Hammersmith & Fulham councils, leading to significant delays in property sales, remortgages, and planning applications.

How much stamp duty is at risk due to the council cyber attack?

The cyber attack threatens billions in stamp duty revenue, with £1.5 billion having been paid through the three affected central London councils in the 2024-25 tax year.

When did the cyber attack on London councils begin?

The IT systems of Kensington & Chelsea Council were first hit in late November, with the damage subsequently spreading to Westminster and Hammersmith & Fulham.

Home / Business and Economy / London Councils Hit by Cyber Attack, Billions in Tax at Risk

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

2 Feb

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Summary

A cyber attack has disrupted IT systems for three central London councils.
Stamp duty payments worth billions are at risk of not reaching the Treasury.
Property sales and planning applications face significant delays.

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.