London council announces record council tax increase after 'savage cuts' from Labour

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The proposed increase would add £958 to the annual bill for a Band D property - a stark rise of about 94 per cent

Residents in Wandsworth face a near-doubling of council tax from April 2027 under new plans citing "savage cuts" from central Labour Government.

The proposed increase would add £958 to the annual bill for a Band D property - a stark rise of about 94 per cent.

The move would mark a dramatic change for the borough, which has historically had one of the lowest council tax rates in the country.

Wandsworth Council said the increase was proposed due to mounting financial pressures linked to changes to the way local authorities are funded.

The Conservative-run council said a review of its finances had found that proposed government Fair Funding reforms could leave Wandsworth with £84m less each year.

According to the authority, that figure is roughly equivalent to its combined annual spending on parks, libraries, leisure centres, waste collection and street cleaning.

The council said the scale of the expected reduction meant it faced difficult decisions over the future of local services, and that additional income from council tax would be needed to help maintain services while addressing its wider financial position.

Robert Morritt, who became council leader in July, said the increase was not a decision he had wanted to make.

He said the announcement had been made more than a year before the proposed change, to give residents "the maximum amount of time to adjust".

Mr Morritt attributed the financial situation to what he described as "savage cuts from central government" and a substantial reduction in the council's reserves.

The council leader said its spending review had been designed to establish priorities for the coming years, including cleaner streets, safer communities, improved housing services and support for vulnerable residents.

"There are difficult choices in this report, but there are also clear priorities," he said, adding that the authority wanted to put itself on a "sustainable financial footing".

Peter Graham, the council's deputy leader and cabinet member for finance, said the authority had promised residents it would be open about the financial challenges it faced.

"Council tax will need to rise unless government thinks again," he said. "And it must think again."

He also criticised the proposed funding settlement, saying Wandsworth should not be "punished" for having historically operated efficiently and kept council tax relatively low.

Mr Graham said the authority was seeking what it considered to be a "fairer deal" for Wandsworth, and would continue making the case for additional government funding.

The final level of council tax for 2027-28 will depend on the council's budget-setting process and the funding arrangements ultimately introduced by central government.

If approved, the increase would dwarf the previous tax hike record of nine per cent, which Worcestershire County Council introduced last year after receiving special permission from the Government.

The Government says the reforms are needed to move more money towards deprived areas and ensure funding is "truly based on need".

Meanwhile, Westminster Council, which has been granted similar permission to raise tax above five per cent without holding a referendum over the next two years, recently cautioned that it would need a 200 per cent increase simply to maintain current spending levels.