Wandsworth Council Considers Council Tax Rise to Address Budget Shortfall

Wandsworth Council is exploring a potential increase in council tax as part of a wider strategy to balance its budget, according to a report presented to the Cabinet.

The Update on the Spending Review document, discussed at a Cabinet meeting on Wednesday, July 29, 2026, highlighted significant financial pressures facing the council. These include the loss of government funding, increasing debt, and depleting reserves. The report indicated that without further action, a significant council tax increase would be necessary.

The council's financial results for the 2025/26 financial year revealed a General Fund revenue overspend of £9.8 million. This was attributed to increased demand and costs in adult social care and homelessness services, as well as a deficit from the closure of Bradstow School. The deficit from the closure of Bradstow School amounted to £4.2 million. The Council has launched legal action against Kent County Council in relation to unpaid fees in an effort to potentially recover some of this debt.

Households in Temporary Accommodation across London boroughs
Bar chart showing the number of households in temporary accommodation across various London boroughs as of Q4 2025.

The Housing Revenue Account also reported an overspend due to rising costs for repairs, maintenance, and building safety compliance.

Councillor Aled Richards-Jones, Leader of the Council, acknowledged the financial challenges during the meeting. The Spending Review, launched across all service areas, aims to identify efficiencies and savings to address these pressures. The outcomes and proposed actions from this review are scheduled to be presented to the Cabinet in September as part of the Medium Term Financial Strategy.

During the meeting, Councillor Peter Graham, Deputy Leader of the Council and Cabinet Member for Finance, noted that if no action is taken, the council's reserves would be depleted within two years. He presented figures indicating a projected budget gap of £96 million next year, rising to £184 million by 2030-31, excluding potential council tax increases.

Total Temporary Accommodation figures for Wandsworth and London
A line graph comparing the total temporary accommodation figures for Wandsworth and London from April 2020 to March 2026.

The council is also implementing a new Private Rented Sector Offer Policy. This policy provides a framework for using private rented accommodation to discharge the council's main housing duty to homeless households. It ensures that offers are suitable and affordable, considering factors such as size, health needs, and access to services, while applicants retain the right to request a statutory review if they believe an offer is not suitable. The policy is expected to generate a net annual saving of £650,000 in its first year by reducing temporary accommodation costs. It is part of a wider homelessness transformation programme aimed at reducing reliance on temporary accommodation and improving outcomes for residents, allowing the council to offer a secure home that meets a household's needs and removes the requirement for costly temporary accommodation.

Projected increase in homelessness approaches
Bar chart showing the projected increase in homelessness approaches from 2022/23 to 2025/26.

Further details on the council's financial position and proposed budget variations for 2026/27 can be found in the Council's Financial Results 2025/2026 report, available on the council's website here.