Wandsworth Council’s long-standing policy of maintaining some of the lowest council tax rates in England is coming to an end after the Conservative-run borough announced a nearly 94 percent increase, the largest annual rise on record. The change, confirmed on Tuesday evening, marks a significant shift for the south London area that has been celebrated as a flagship model of Thatcher-era local government since the 1980s.
The council attributed the drastic tax hike to a sharp reduction in central government funding, which it says has been cut by 40 percent amid a redistribution of resources toward more deprived regions, primarily in the north of England and the Midlands. This adjustment followed reforms initiated under local government secretary Angela Rayner, who has overseen a new funding formula aimed at prioritizing need based on factors like deprivation and population demographics.
Wandsworth currently imposes the lowest council tax in England at £509.84 for a Band D property, with an additional £150.51 precept from the Greater London Authority (GLA). From April, the local share will rise to £1,468, pushing the total bill, including the GLA precept, to nearly £1,978—almost doubling the existing charge.
Conservative leaders in Wandsworth and other affected boroughs argue the government is unfairly penalizing councils that have long offered low-tax options. Robert Morritt, leader of Wandsworth Council, described the hikes as a blow to local democracy, suggesting the government is trying to "kill off local choice." Similarly, Elizabeth Campbell, Tory leader at Kensington and Chelsea, one of the six London and South East councils permitted to raise taxes significantly, labeled the policy a "totally political" assault on inner London, warning of severe service cuts alongside the tax increases.
Conversely, the government maintains that the revised funding system seeks to address longstanding inequities by redirecting aid to under-resourced communities. A government source highlighted Wandsworth’s substantial reserves, estimated at £194 million, as justification for reducing its funding. Rayner’s office contends the reform does not target low-tax councils specifically but instead aligns financial support with assessed local needs.
Critics on both sides reflect a broader debate about the legacy of Wandsworth’s approach to local government. The borough’s low-tax, privatization-driven model was famously championed during Margaret Thatcher’s premiership as a standard for Conservative councils nationwide. It introduced pioneering policies such as right-to-buy schemes and service outsourcing, shaping the political landscape of that era. Some analysts view the new funding formula as an assertion of central government control, conflicting with claims to support local autonomy.
Experts from the Institute for Fiscal Studies argue the reforms retain local discretion over tax rates but clarify that councils choosing to keep taxes low will no longer receive compensatory grants from the central government. This signals that lower council tax bills now carry the trade-off of potentially reduced public services.
Labour representatives in Wandsworth condemned the council’s tax increase as unnecessarily harsh and politically motivated ahead of local elections. Simon Hogg, Labour group leader, pledged to keep any future tax rises below 5 percent, contrasting this with the Conservative administration’s approach, which he described as designed to facilitate future tax reductions by inflating rates now.
The tax adjustment reflects shifting priorities in local government finance as policymakers seek to balance fiscal responsibility, equity across regions, and the legacy of local governance models that date back several decades.