Wandsworth Council Approves Record 94% Council Tax Increase
Wandsworth Council approved a record 94% council tax hike to offset an 84 million pound funding shortfall caused by national government reforms.
The Wandsworth Council approved a record 94% increase in council tax for residents of the west London borough, with Band D properties facing an additional annual charge of £958 starting in April 2027. The minority Conservative administration attributed the hike to central government funding reforms that shifted grants away from London toward the North of England, leaving the council with an annual shortfall of £84 million.
To mitigate the impact, the Government of the United Kingdom granted Wandsworth and four other local authorities the power to exceed the standard 5% tax hike cap for five years without a local referendum. While the council described the decision as a reluctant necessity to protect essential services, the government argued the reforms replace an outdated system to ensure money goes where it is most needed.
Local Labour MPs and councillors condemned the proposal as unfair, arguing the pressure stems from the council's own financial management. Meanwhile, Conservative Party leader Kemi Badenoch instructed lawyers to challenge the funding cuts, alleging the government is deliberately diverting money from areas that do not vote Labour to those that do.
In a separate effort to manage finances, Wandsworth joined three other London councils in urging the Chancellor to reverse a planned mansion tax scheduled for April 2028. The councils argue the levy on homes valued over £2 million disproportionately impacts the capital, though the Treasury maintains the tax is necessary to fund public services and address systemic unfairness.