Wandsworth Council is proposing a council tax increase of £958 for a Band D property, representing a 94% rise, unless the government reconsiders its funding cuts to the borough. The Conservative-led London authority says it faces losing £84 million annually by the end of the next three years under changes to the national funding formula.
An extraordinary council meeting on 15 September 2026 heard the proposals, though the final decision will not be made until early next year. According to Wandsworth Council's own announcement, the rise would apply from April 2027 if the government does not alter its funding plans.
The proposed increase has drawn sharp criticism from opposition councillors and residents' groups, with some describing it as unprecedented for the borough. Recent reporting has characterised the 94% rise as a record for a Band D property in the area.
Why is the council proposing such a large increase?
The council attributes the proposed rise to central government funding cuts announced as part of the Fair Funding Review 2.0. Under this reform of the council funding system, money is being redistributed from some council areas to others, with Wandsworth among the boroughs facing the largest reductions.
The government has given Wandsworth, along with Westminster, Kensington & Chelsea, Hammersmith & Fulham, the City of London, and Windsor and Maidenhead in Berkshire, temporary flexibility to raise council tax above the usual 5% annual cap for two years. This special power is intended to help councils manage the transition to the new funding formula.
However, a discrepancy in the government's calculations has complicated matters. Wandsworth's spending review document reveals that the government's Fair Funding 2.0 calculation assumed the borough's Band D council tax was £2,060, compared with the actual figure of £510. This miscalculation has significantly affected how much flexibility the council has been granted.
What is Wandsworth's current council tax position?
Wandsworth has historically maintained the lowest council tax in London. For the current year, council tax on a Band D property stands at £1,020.35. Of this, £509.84 is set by the council itself, while £510.51 represents the Greater London Authority precept set by the mayor of London.
The council froze its main element of council tax for 2026/27, the fourth consecutive year of no increase on the council's portion. However, the adult social care precept rose by 2% and the GLA's increase was 4.1%, contributing to the overall Band D charge of £1,020.35.
In February 2026, the council confirmed it would remain the lowest council tax area in Britain after approving a freeze in the main share of council tax for that financial year.
What do council leaders say about the proposal?
This administration recognises the financial pressures that many households already experience and the extent to which they are already taxed by other means. Higher council tax will not be easy or welcome. We do not regard it as fair and will continue to challenge the government by every possible means.
These words came from Conservative deputy leader and cabinet member for finance Peter Graham at the 15 September meeting. He indicated the council was reluctantly considering the increase and urged residents to support the authority's challenge to the government by responding to a consultation launched at that time.
Opposition Labour councillor Simon Hogg condemned the proposal, saying:
Wandsworth Conservatives have decided to double your council tax. It's outrageous, it is stunning. People who don't know how to run the council panicking and making you pay the price. This increase is unfair, it's unnecessary and we oppose it.
What is the government's position?
The Ministry of Housing, Communities and Local Government maintains that the funding reforms are necessary to modernise an outdated system. A spokesperson stated:
We have consulted extensively on reforming the outdated council funding system to ensure money goes where it is most needed, following on from a long-standing consensus... We're also protecting councils through transitional arrangements so no area faces a cliff edge.
The government's transitional protection arrangements assume councils like Wandsworth would use their special flexibility to raise council tax by 4.99% plus £150 each year. According to the council's analysis, this would amount to a 71% Band D increase in the short term—still substantial but less than the 94% now being proposed.
What legal challenge is underway?
Wandsworth Council, along with Westminster City Council and the Royal Borough of Kensington & Chelsea, is currently consulting on plans to use the Sustainable Communities Act to challenge the government's funding proposals. This piece of legislation allows councils to formally contest government decisions they believe are unfair or damaging.
The three councils argue that the funding redistribution disproportionately affects London boroughs that have historically maintained lower council tax levels, forcing them to choose between severe service cuts or unprecedented tax increases.
What happens next?
The council tax rate required for April 2027 will be outlined in July 2026 as part of the spending review process. The final budget decision is expected at an early 2027 council meeting, likely in February. Until then, the council will continue consulting residents and pursuing its challenge to the government's funding formula.
Key Facts:
- The proposed 94% increase would raise Band D council tax from £1,020.35 to £1,978.35 annually
- Wandsworth faces a £84 million annual funding cut by the end of the next three years under the Fair Funding Review 2.0
- The council has frozen its own share of council tax for four consecutive years but now says this is no longer sustainable
- Five London boroughs and one Berkshire council have been given temporary flexibility to raise council tax above the 5% cap for two years
- A final decision on the 2027/28 council tax will not be made until early 2027
