Council faces £137m budget gap as Labour Government funding cuts leave Wandsworth facing its most serious financial challenge in decades.
Wandsworth Council has announced proposals for a significant increase in Council Tax from April 2027 as it tackles a £137 million budget gap and the impact of a 40% cut in Government funding.
Under the proposals, the average Band D Council Tax charge would increase by £958, taking the average total bill, including the amount paid to the Mayor of London, to £1,978. This represents an increase of 94% on today’s total bill.
These are extremely difficult decisions, but the new Conservative administration has made clear that doing nothing is not an option.
The Council has warned that without action, its reserves could run out in less than 18 months, potentially allowing the Labour Government to appoint Commissioners with powers to intervene in how Wandsworth Council is run.
Wandsworth hit by £84 million annual funding cut
A major factor behind the financial pressure is the Labour Government’s decision to cut Wandsworth’s Government funding by 40%. This represents a loss of £84 million a year and, according to the Council, is the worst cash settlement of any council in the country. The funding reduction comes alongside rising inflation, increased demand for local services and significant overspending inherited from the previous Labour administration.
The Council has already begun identifying savings, but with a £137 million budget gap, the administration says it cannot simply cut its way out of the problem. An additional 1% increase in Council Tax would raise just £770,000 for the Council, highlighting the scale of the financial challenge it faces.
Conservatives deliver £79 million in annual savings
The new Conservative administration has undertaken a full Spending Review as part of its efforts to put the Council's finances on a sustainable footing. The review has identified £79 million in annual savings.
The administration has also stressed that Wandsworth has historically kept Council Tax exceptionally low while maintaining high-quality services. Wandsworth currently has the lowest Council Tax in the country, with a Band D property paying £1,020. Even with the proposed increase, Wandsworth would remain significantly cheaper than neighbouring boroughs including Lambeth and Merton, where current Band D charges are £2,047.11 and £2,146.76 respectively.
Breakdown of Band D bill leaving £958 to be found from Council Tax after savings
Wandsworth continues to fight the Government
Alongside the difficult financial decisions being taken locally, the Conservative administration is continuing its challenge to the Labour Government over Wandsworth’s funding settlement. The Council is using the Sustainable Communities Act to formally challenge the Government’s decision and is calling on residents to support its case. You can provide your support here.
Leader of Wandsworth Council, Cllr Robert Morritt, said:
No one wants to raise Council Tax in this way. But we will be fighting this Labour Government every step of the way to ensure residents’ voices are heard and Wandsworth gets the fair deal it deserves.
Cllr Morritt added that, for the £5 billion Wandsworth residents pay each year in tax, receiving just 4p back for every £1 is unacceptable. The Council has published its proposals now to give residents as much notice as possible and is encouraging local people to respond to its consultation.
The Labour Members of Parliament for both Tooting and Putney voted in favour of these funding cuts. The Labour MP for Battersea was absent from voting.
