Wandsworth Council is proposing a significant 94% council tax hike, which would add £958 to the annual bill for households, bringing the total to £1,978. This substantial increase is being considered in response to a projected budget deficit of £215 million by 2030-31. The council attributes this financial challenge to considerable cuts in government funding and the financial situation inherited from the previous administration.

Councillor Peter Graham, Deputy Leader of the Council and Cabinet Member for Finance, presented a grim financial forecast during an extraordinary council meeting on Tuesday, September 15, 2026. He explained that the projected budget deficit is driven by severe government funding cuts, with Councillor Graham stating, The government, sadly, has stripped funding from local councils. He further elaborated that The government's cuts on this scale will inevitably mean difficult decisions about services, and the income will be felt by all our residents, especially those on lower incomes. The cuts are projected to be £19 million in 2026-27, £48 million in 2027-28, and £84 million in 2028-29. Councillor Graham also noted that the Labour government regards Wandsworth's previous funding as a subsidy and that they are reforming a Tory funding system that let Richard Wandsworth set artificially low council tax.

Even after identifying £79 million in net annual savings by 2030-31, a deficit of £143 million would persist, making the proposed council tax increase a necessary consideration. Councillor Graham also mentioned that Instead of £184 million, the budget gap in four years is £215 million.

Councillor Robert Morritt, Leader of the Council, defended the administration's stance, emphasizing that the proposed increase is a direct consequence of these severe government funding cuts and the financial condition left by the prior administration. Councillor Morritt stated, The previous administration left behind an unsustainable financial position. Councillor Graham elaborated, The opposition that chose to set this year's budget and chose to empty another 50 million from reserves to fill their budget gap. It was their decision to spend, in total, almost half of the 206 million in usable reserves that they had inherited from the last administration, our administration that left in 2022. He also noted that the previous administration inherited borrowing of £184 million and that their budget showed that without tax increases, the budget gap would reach £184 million.

Councillor Simon Hogg, Leader of the Opposition, strongly opposed the proposal, describing it as outrageous, unfair, and unnecessary. He criticized the current administration for alleged mismanagement and for not being transparent about its plans. Councillor Hogg asserted that the Labour party has an alternative strategy to manage the budget without such a drastic tax increase. Their plan involves driving every drop of efficiency out of this council and taking several years to adjust the council to its new funding without hitting local people with large tax increases. This includes cut[ting] temporary accommodation payments to private landlords significantly through reform, reduce[ing] duplication within the council's corporate services, modernis[ing] other services, deepening the successful partnership with Richmond, and we would increase council tax by up to 5% a year. They also propose to use[e] part of the reserves to smooth the journey and reform and streamline the council, to be a more effective digital council. Councillor Hogg stated, We would do pretty much the opposite. We would take several years to adjust the council to its new funding without hitting local people with large tax increases.

To lessen the impact of the proposed rise on vulnerable residents, the council intends to nearly double the support provided through the council tax reduction scheme for low-income households and broaden its eligibility criteria. Councillor Graham stated, everyone of working age will pay something. But that will still involve the amount we spend on Council Tax Reduction next year nearly doubling in order to assist. The individual discounts that people will receive will have to move towards the London norm, the London norm in Labour boroughs, in order to maintain the affordability of the scheme overall. Otherwise, it would more than double. He also noted that there will be people that currently don't get any reduction who will now get help and get assistance and won't see the full impact of those increases, who would not have got any help at all under the scheme that we inherited.

It was noted that Wandsworth's council tax bills would need to increase by £958, representing a 94% rise, to £1,978 annually. Councillor Simon Hogg stated that Wandsworth has some of the highest reserves and the lowest debt of any London borough.

Further details on the council's financial situation can be found in the Public reports pack from the meeting on 15th September 2026.