Wandsworth Council has been accused of planning "Britain's biggest-ever council tax increase" with a proposed 94 per cent rise that would add £958 to annual Band D bills, taking them from £1,020 to £1,978. The move, announced at a council meeting on September 15, has been condemned as "cruel" by the Labour opposition.
Conservative administration blames inherited financial crisis
The new Conservative-led administration, which took control of the council in May, said the rise is necessary to address a "financial crisis" it inherited from the previous Labour administration. Councillor Peter Graham, Cabinet Member for Finance, told the meeting that the council faced the "largest government cuts, the largest projected overspending and the largest predicted budget gap in Wandsworth's history" – a shortfall of £215 million by 2030.
Graham said the authority had identified annual net savings of £79 million by 2030 and planned to stabilise reserves at around £76 million, but still faced a budget gap of £143 million that could only be met through higher council tax at this stage. He also said the administration was challenging government reforms it predicts will cut central funding by £84 million a year by 2030.
Council defends 'honest and transparent' approach
Councillor Graham defended the decision, stating: "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." He added: "This administration committed to being honest and transparent about the council's finances. It also committed to fixing it. If the Government refuses to act, a duty is placed on us. It is our responsibility to balance the books."
The council said it would nearly double support in the council tax reduction scheme next year and expand eligibility to include income bands just outside current criteria. A consultation on the proposed changes will take place in the coming weeks.
Labour leader accuses Tories of 'cruel and selfish' decision
Labour Opposition Leader Simon Hogg accused the administration of hiding its intention to nearly double council tax by omitting it from its May election manifesto. He said residents faced "Britain's biggest-ever council tax increase" and "much worse services for much higher cost".
Councillor Hogg said: "This increase is unfair, it's unnecessary and we oppose it, and as soon as we can Labour will scrap it. This is your choice, it's your decision, and you need to own it. This is a cruel and selfish and very political decision, and you're seeking to blame everyone but yourselves."
Hogg said Labour would have kept its manifesto pledge of not raising council tax above five per cent a year and would have closed the budget gap through £45 million in budget reductions without service cuts, including by modernising council operations. He said Labour would have used reserves to "smooth the journey" while streamlining services over three years "to be a more effective digital council".
Additional cuts and next steps
The proposed hike comes alongside other changes already made by the Conservatives, including closing Wandsworth's cost-of-living reserve with £6.2 million of unspent funds, cancelling ringfenced funding for Labour's Access for All and Borough of Sanctuary schemes, suspending grants to charities through the Wandsworth Grant Fund, and reintroducing charges for bulky waste collections.
Councillor Graham responded: "We are not doing this from cruelty. We are doing things that we do not wish to do because we have to try to close the gap and limit that council tax increase." Wandsworth Labour has launched a petition opposing the hike, and more details on proposed bills for each band will be announced in due course. A final decision will be made at the council's budget meeting early next year.
