Wandsworth Council is considering external borrowing to finance future investments in the borough, according to a report discussed at the Finance Overview and Scrutiny Committee on Wednesday 03 December 2025.

The council, which currently has no external debt, is exploring borrowing as a means to fund capital projects and improvements for residents, including capital repairs, estate regeneration, and the delivery of new homes. These investments fall into investment in new and existing housing stock and capital investment in assets such as roads and highways, schools, leisure facilities, libraries and the public realm. The Housing Revenue Account (HRA) business plan currently assumes £670m of new borrowing over the next ten years for estate regeneration, and £200m for capital repairs and improvements to existing stock.

A report presented to the committee highlighted that while Wandsworth's current financial position is strong, borrowing is a common practice for councils to fund investments in their communities.

The report, titled Treasury Investments and Borrowing, stated that councils routinely borrow to fund investment in their communities, recognising that borrowing enables the delivery of improvements and long-term benefits for residents. The report outlined the benefits of borrowing to fund investment, including assets outlasting debt, income streams covering costs, social impact, economic growth, and environmental gains.

The Finance Overview and Scrutiny Committee considered the report, focusing on key lines of enquiry related to investments and borrowing. These included:

  • The balance between risk and reward for investments.
  • Ethical considerations for treasury investments.
  • Future borrowing plans and affordability.
  • Financial and other benefits for the council and residents in return for planned borrowing.

The report acknowledged recent financial distress experienced by other councils due to investment and borrowing decisions, such as Thurrock, Croydon and Woking. It emphasized that Wandsworth has a clear governance process in relation to treasury management, including monthly internal treasury management meetings, a specialist external treasury management review, and regular audits of internal controls. The report contrasts Wandsworth's approach with that of councils like Thurrock, Croydon, and Woking, which experienced financial distress due to overconfidence, weak governance, poor risk management, insufficient financial resilience, and transparency failures.

The report also addressed the ethical considerations of investments, stating that Environmental, Social and Governance (ESG) analysis is integrated into treasury investments. Existing funds are reviewed quarterly for continuing compliance, and new long-term investments require an Investment Strategy Statement (ISS) that evaluates ESG risks and alignment with the council's net zero agenda.

The report outlines several mechanisms for member oversight and scrutiny, including:

  • Full Council annually approves the Treasury Management Policy and Strategy.
  • Cabinet receives regular updates on investment performance and borrowing plans.
  • Finance OSC's thematic reports and Key Lines of Enquiry briefings consider appropriate indicators and affordability assessments.
  • Periodic Internal Audit reviews of the control environment are reported to Audit Committee.
  • Independent external review work is undertaken by the external auditors as part of the annual audit of the financial statements.

The report pack for the meeting included a number of appendices, including the Treasury Management Annual Report 2024/25 and Mid Year Review 2025/26 and the Treasury Management Policy 2025/26.