4 min read26 August

Leaders of Tory-run Wandsworth and members of Kemi Badenoch’s shadow front bench, including party chairman Kevin Hollinrake and shadow local government secretary James Cleverly, met on Wednesday to discuss how to escalate their response to the new local government funding settlement.

They agreed to use what sources described as statutory action through the Sustainable Communities Act. Under this plan, Wandsworth Council will consult residents before submitting a formal appeal to ministers asking them to reconsider the funding reforms. If this appeal is rejected, then the Local Government Association could make its own recommendations to the government on behalf of the council. 

Wandsworth Conservatives told PoliticsHome: “The previous Labour administration in Wandsworth failed to stand up for local residents, choosing instead to roll over while the Labour government cut 40 per cent of Wandsworth’s funding. That decision has real consequences for our borough and unfairly punishes Wandsworth residents.

“Wandsworth Conservatives will always stand up for our residents. That is why we have officially launched a challenge to the decision taken by the Labour government.

“We will not sit back and accept a funding settlement that leaves Wandsworth residents worse off. We will continue to fight for a fair deal for our borough and the funding it deserves.”

PoliticsHome revealed last week that Wandsworth was preparing to introduce England’s biggest-ever council tax increase in April 2027.

The council, which has one of the lowest tax rates in the country, blamed Labour government cuts to its grant funding, which are projected to amount to a 40 per cent reduction.

The government has said its reforms to local government funding prioritise parts of the country with higher deprivation so that the system is “truly based on need”.

However, the changes will mean less funding for some local authorities in London, with MPs and councillors in the capital warning that the plans will exacerbate cost pressures.

London Councils, which represents local government in the capital, last week told PoliticsHome “it is now almost impossible” for councillors in London “to protect frontline services for their communities” because “funding from central government remains wholly insufficient to meet these growing demands”.

Wandsworth, which the Conservatives won from Labour in May, has already announced spending cuts in response to the new funding settlement, having previously warned that council tax would have to increase by up to 230 per cent without a spending decrease.

Representatives of other councils impacted by funding cuts were also present on Wednesday. Conservative-run Westminster and Kensington & Chelsea have been considering launching appeals to the government, as has Lib-Dem-controlled Richmond, PoliticsHome understands.

Westminster, which like Wandsworth was permitted by the government to raise council tax above five per cent without a referendum for the next two years to raise more revenue, recently warned it would have to raise council tax by up to 200 per cent to keep spending at current levels.

A Conservative Party spokesman told PoliticsHome: “We regularly meet with Conservative council leaders across the country to discuss the issues facing their communities.

“Labour have slashed funding for these councils only to hand the money to badly run Labour councils elsewhere.

“It is only right that, in the face of this Labour government’s determination to impose huge and vindictive council tax rises, we meet with them to discuss how we can work together to oppose Labour’s council tax raid.”

A Ministry of Housing, Communities and Local Government spokesperson said: “We have consulted extensively on reforming the outdated council funding system to ensure money goes where it is most needed, following on from a long-standing consensus.

“We’re also protecting councils through transitional arrangements so no area faces a cliff edge.”

Since PoliticsHome revealed the expected council tax rise, the Labour group in Wandsworth has used the 160 per cent figure on its campaigning literature ahead of a by-election in the Trinity ward on Thursday. 

In response, Conservatives in the South London borough have accused the previous Labour administration of spending recklessly while it controlled the council.