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Kemi Badenoch, the Conservative leader, has revealed that her party has engaged legal counsel to contest government decisions regarding funding reductions following a record-setting council tax increase in Wandsworth, a key Conservative-controlled borough in south-west London. On BBC Newsnight, Badenoch described the unprecedented 94% council tax hike as “outrageous,” highlighting that the council attributed the rise to an £84 million annual cut in government funding. In response, the Tory Party has taken legal steps to investigate whether these funding cuts can be legally challenged.
The government, for its part, maintains that reforms to the existing council funding system are necessary to better allocate resources based on need. Historically, Wandsworth has maintained one of the nation’s lowest council tax rates, with an average Band D property paying just over £1,000 annually—significantly lower than in many London boroughs where the charge exceeds £2,000. However, the planned additional £958 increase would nearly double council tax levels in the borough, with the rise split equally between the local council and the mayor of London. This proposal, which sparked widespread criticism during a council meeting on Tuesday, is scheduled for a final vote early next year.
Addressing concerns raised by presenter Matt Chorley about Wandsworth still having a comparatively low council tax despite the increase, Badenoch acknowledged that families would be alarmed by such a sharp rise in their household expenses. “I think if you suddenly have a nearly 100% increase in your council tax, you would be extremely worried. Families have budgets,” she said. While she didn’t specify an alternative tax rate, Badenoch questioned the rationale behind slashing Wandsworth’s funding by 40% when other areas, such as those led by Andy Burnham, have not implemented comparable cuts. She also defended her tenure as local government minister during previous Conservative administrations, despite those governments having reduced some council grants.
The funding changes are part of the wider Fair Funding Review 2.0, which redistributes financial resources between councils. Following reductions in central government funding, six councils—including Wandsworth and five others such as Kensington & Chelsea, Westminster, and Hammersmith & Fulham—have been granted permission to raise council tax above the usual 5% cap for two years. Several London boroughs are considering using the Sustainable Communities Act to contest the financial cuts. On Tuesday, the deputy leader of Wandsworth’s Tory council described the impending tax hike as unfair but necessary given the funding shortfall, pledging to challenge the government’s decision by all available means. Meanwhile, the Labour opposition leader in Wandsworth condemned the increase as “unfair” and “unnecessary,” accusing the council of mismanagement. Nevertheless, three local Labour MPs declined to support the council’s appeal against the cuts, arguing that the council was financially stable prior to the Conservatives’ recent election success. The Ministry of Housing, Communities and Local Government underscored that council tax levels are council decisions but emphasized the need to prioritize taxpayers, assuring that changes aim to ensure funding is directed where it is most needed without causing sudden financial shocks
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