Wandsworth residents could be hit with what Labour claims would be Britain’s biggest-ever council tax rise, with bills potentially soaring by as much as 160% as the borough battles a deepening financial crisis.
The Conservative-run council, which Labour lost control of in May, is understood to be considering the extraordinary increase after warning that its government funding is set to fall by around 40%.
Town Hall chiefs say the borough is facing the highest planned borrowing in its history, while its reserves could be exhausted within three years unless urgent action is taken.
The extraordinary prospect of council tax rises of this magnitude in Wandsworth have raises a worrying question closer to home — could RBKC Council eventually be forced down the same road?
RBKC is facing its own financial crisis after warning that changes to Government funding will cost the borough £108 million over four years to 2029/30 — a reduction equivalent to more than 40% of the budget it directly controls.
Labour politicians in Wandsworth have seized on the new figures, accusing the Tory administration of “planning Britain’s biggest ever council tax increase”. But the Tories have hit back, blaming both the Labour Government and the previous Labour administration for leaving the borough facing a financial cliff edge.
A Wandsworth Tory spokesman said: “The Labour Government is slashing 40% of Wandsworth Council’s funding, leaving us with the worst cash loss of any council in the country. At the same time, the last Labour administration in Wandsworth had spending plans that would have used all our reserves and bankrupted the borough within 18 months – leaving us with a staggering budget gap of £137 million.”
The main council chamber at Wandsworth Town Hall
Wandsworth has traditionally enjoyed some of the lowest council tax bills in Britain, with residents currently paying around 0.1 per cent of the value of their homes each year. But those historically low bills, combined with mounting pressure on council finances, have left the new administration contemplating a rise on a scale rarely, if ever, seen before.
The row comes amid wider concern across London over changes to the way Whitehall distributes money to local authorities. London MPs have warned that the reforms could leave capital boroughs particularly vulnerable as they struggle with rising costs and increasing demand for services.
The looming battle over Wandsworth’s finances will also intensify the political row over Andy Burnham’s plans for local government funding, with London boroughs warning they could lose out heavily under the new system.
For Wandsworth residents, however, the immediate question is much simpler — just how much more will they be asked to pay?
