Residents of a London borough have been left shocked, angry and fearful after being told they face a council tax bill rise of 94 per cent next year – adding £958 to the average annual bill.
The proposed tax rise, announced this week by Wandsworth Council, is in response to a sharp fall in its cashflow after the Government’s “fair funding” review changed the formula that decides how much money each local authority receives from Whitehall.
London councils stand to lose the most.
“We do not want to do this,” said Peter Graham, deputy leader of Conservative-controlled Wandsworth, upon announcing the new levy on Tuesday. “Council tax will need to rise unless Government thinks again.”
On Thursday, Tory leader Kemi Badenoch said she had “instructed lawyers” to see if the cut in funding for Wandsworth can be challenged. She said the 94 per cent council tax rise was “outrageous” but the council was “not doing it because they want to”.
Wandsworth is one of three Tory-controlled councils in London that have announced plans to raise council tax as a result of the funding gap.
‘Unforgivable’
Westminster council said it might have to increase its charges by up to 100 per cent, while Kensington and Chelsea council warned of a “very large” spike ahead. Along with Wandsworth, they are preparing to challenge the Government to push ministers for more money.
The Labour Government has argued that the fair funding review was necessary to get more cash to areas with higher spending needs.
But the authorities standing to lose the most – and its residents – feel this is unfair.
“It’s really terrible because it feels like the central Government is punishing people because they can afford to live in south-west London. There is real shock and anger,” Frances, a 65-year-old Wandsworth resident, told The i Paper after her council announced the tax increase.
“My funds are going to someone miles away and I have no influence on how that is spent,” said the 65-year-old freelance writer, who declined to share her surname.
Jemima Jefferies says Wandsworth’s council tax rise has left her wondering how she will afford bills next year (Photo: Matthew Bailey/The i Paper)Jemima Jefferies, a 30-year-old life coach, said: “I’m nervous about it to be honest, because I’m thinking, ‘How am I going to be able to afford my council tax next year?’”
“I’m in quite a fortunate position because the tax rise won’t be a matter of whether or not I can put food on the table – it’s just a really annoying cost. But for others I know it will be much worse.”
“What the Government is doing does feel really unfair. I understand it will be good for those other areas outside of London, but the sheer volume of people that will be affected by this is unforgiveable,” she added.
A Government spokesperson said it was “fixing an outdated funding system, so funding goes where need is greatest”. They said councils “should put taxpayers first” when deciding on the increases.
Historically low taxation
Wandsworth, Westminster and Kensington and Chelsea’s council taxes are currently among the lowest in England.
These three councils – alongside Hammersmith and Fulham, City of London and Windsor and Maidenhead – have already been given special permission to increase council tax beyond the usual 5 per cent cap.
All six of these areas currently levy “very low council tax bills”, said Kate Ogden, economist at the Institute for Fiscal Studies. As a result, the Government’s own figures already “assume that these councils might significantly increase their council tax bills”, Ogden added.
Wandsworth would need a council tax revenue increase of 75.5 per cent over a three-year period to deal with funding issues – the highest “assumed” increase, according to analysis of Government figures by the House of Commons Library.
The plan to ‘fight’ funding changes
Wandsworth, Westminster and Kensington and Chelsea all plan to submit separate petitions to the Government in the coming weeks to challenge the “fair funding” changes.
The Sustainable Communities Act, the legislation they are using in the challenge, allows councils to appeal against a government policy if they fear it could damage residents’ well-being.
Although ministers have the power to refuse the appeal, they are legally obliged to respond. The period of this consultation is not clear, and residents do not need to be consulted by the government, The i Paper understands.
“We’ll use every weapon in our armoury to make them think again,” Kensington and Chelsea council leader Elizabeth Campbell told this paper of her council’s challenge. “We’re not going to roll over on this until we’ve exhausted every avenue.”
It is not clear if the Government will take it seriously. But Wandsworth’s three Labour MPs have already refused to back the Tory-run council’s challenge. In a letter refusing support, Rosena Allin-Khan, Fleur Anderson and Marsha de Cordova said Wandsworth Council had been in “a strong financial position” when Labour had been in charge before losing at the May 2026 local elections.
Liberal Democrat-run Richmond Council, which says it will lose £102m from fair funding changes over the next four years, told The i Paper it also plans to join the Tory councils’ challenge after consulting residents. The council will “fight to get the Government to change track”, said leader Gareth Roberts.
Richmond has one of London’s highest council tax rates, charging £2,486 for Band D residents, and does not currently have permission to increase rates above 5 per cent.
‘Sabre-rattling’
Scepticism remains over whether or not any councils really need to raise bills by 100 per cent.
Local government experts believe Wandsworth and Westminster will opt for smaller rises when they finalise their council tax rises for 2027-28 early next year.
“I think there is quite a bit of politics to it,” said Andy Pike, professor of regional development studies at Newcastle University, calling the threats of 100 per cent council tax rises “sabre-rattling”.
“I think these councils are trying to blame the Government for the funding settlement, as they make an attempt to push for more money,” he added.
“There’s politics and negotiation tactics,” said one local government source on the threats of 100 per cent increases ahead of final decisions.
Paul Fisher, Westminster’s cabinet member for finance, denied the possible 75 to 100 per cent increase in council tax was a political move, describing the councils’ challenge as a “very genuine attempt to push the Government to rethink the funding.”
John O’Connell, chief executive at the TaxPayers’ Alliance, said the kind of council tax rises being talked about by Wandsworth and Westminster are “simply unacceptable” and will do “real damage” to residents’ lives.
But he had some sympathy with these London councils, calling on Labour ministers to rethink the funding reforms so “punishing rises” can be prevented.
O’Connell’s remarks were echoed by Beth, another Wandsworth resident, who said the tax rise could push people away.
“From a budgeting perspective, it’s something I will have to think about, especially with how crazy rent prices are. It will definitely make other areas look a lot more attractive,” said the 25-year-old, who works in sales and did not share her last name.
Susan Read, a 75-year-old retired nurse who has lived in the area for most of her life, believes the additional tax will particularly affect younger and older people.
“It is going to be hard for us pensioners, never mind the young people that are just starting out,” she said.
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