Council Tax increase
The government has cut Wandsworth funding by 40%, the worst cash settlement in the country. This cut of £84 million per year is matched by the considerable spend we inherited and is more than all our spending on parks, libraries, leisure centres, bin collection and street cleaning. Other pressures include inflation costs and rising demand for local services.
Challenging the settlement
The Council will challenge the funding settlement under the Sustainable Communities Act. For our formal challenge to have the best chance of success, we need your help.
If we are unable to change the settlement
If we are unable to get the government to think again, local bills will increase. Given the scale of the increase, we are giving you as much notice as possible.
Wandsworth’s tax would still be low compared to other London boroughs, and we will continue to work to keep your bill down.
Why is Council Tax increasing?
Wandsworth is facing substantial financial pressures.
The main reason for the increase is a substantial reduction in government funding through changes to the way councils are funded nationally. As part of the government's Fair Funding Review, funding is being redistributed to areas judged to have higher levels of need.
Our funding has already started to reduce, by £19m a year in 2026/27, which will become an £84m a year reduction by 2029. This is equivalent to 40% of our total income. At the same time, demand and costs for essential services continue to rise.
Despite carrying out a comprehensive review of spending, identifying savings and efficiencies, and exploring ways to reduce costs, additional income is needed to maintain the services residents rely on.
Is there anything we can do to prevent this?
The Council will challenge the funding settlement under the Sustainable Communities Act.
For our formal challenge to have the best chance of success, we need your help. Please respond to the consultation, which will inform our challenge.
Has the increase already been approved?
No.
The figures in your letter are based on the Council's current financial planning assumptions and represent the expected scale of the increase required to address the funding gap.
The final Council Tax level for 2027/28 will be determined through the Council's formal budget-setting process in February 2027, and subject to full council agreement in early March 2027.
If you receive a discount, exemption, Council Tax support or are subject to a premium, the amount you actually pay may be different from the figures shown.
The Council continues to explore all options to reduce the need for an increase and keep any rise as low as possible.
How do we compare with neighbouring boroughs?
Even with this increase, Wandsworth Council Tax will remain broadly in line with neighbouring boroughs.
For comparison:
- Wandsworth Band D in 2027/28 would be £1,978
- A Band D property in Lambeth in 2026/27 pays £2,047.11
- A Band D property in Merton in 2026/27 pays £2,140.52
What are the proposed amounts for each band?
| Band | Current total | Increase | New total |
| A | £680 | £639 | £1,319 |
| B | £794 | £745 | £1,539 |
| C | £907 | £852 | £1,759 |
| D | £1,020 | £958 | £1,978 |
| E | £1,247 | £1,171 | £2,418 |
| F | £1,474 | £1,384 | £2,858 |
| G | £1,701 | £1,597 | £3,297 |
| H | £2,041 | £1,916 | £3,957 |
If your Council Tax bill is subject to any discount, exemption, support scheme or premium, the figures shown above may not reflect the amount you actually pay. Premiums apply to second homes and empty properties.
What is causing the Council Tax increase?
The new administration has run a full Spending Review to address the Council’s financial crisis, producing £79 million in annual savings (which equates to around £529 for every household in the borough).
Unfortunately, these difficult choices will not close Wandsworth’s budget gap. For a Band D bill, this leaves £958 to be found through Council Tax after savings:
Are there other options, instead of putting Council Tax up?
No. The government’s Fairer Funding review has calculated how much funding Wandsworth will lose, and those calculations have included an assumption that Council Tax will increase. If we do not increase Council Tax, we will be left with a larger financial gap than we can cover.
Before proposing any increase to Council Tax, the Council has undertaken a comprehensive review of its spending, identified savings and efficiencies wherever possible, and looked at every opportunity to reduce costs. Despite these efforts, additional income is required to continue delivering the services residents rely on every day.
What is the Council doing to avoid increasing Council Tax?
The Council has undertaken a comprehensive review of its finances and continues to:
- Identify savings and efficiencies
- Reduce costs where possible
- Explore opportunities to generate income from other sources
- Review spending priorities
- Challenge the government's funding settlement
The Council remains committed to keeping Council Tax as low as possible while protecting essential services.
Why can't the Council simply make more savings instead?
The Council has already identified and delivered significant savings and efficiencies over many years.
However, the scale of the funding reductions and rising service costs means that savings alone are not sufficient to close the budget gap while maintaining essential services.
Residents are invited to share their views on future spending priorities and possible areas for further savings through the Council's engagement survey.
Why are you telling residents so far in advance?
We believe residents should have as much notice as possible of significant changes that may affect household finances.
Providing advance notice supports transparency and gives households more time to plan, budget and understand the reasons behind the proposed increase.
How much will this increase raise?
Currently the borough’s share of Council Tax generates a net £77 million a year for the council. The total additional amount raised by this tax increase will be £132 million in 2027/28.
My bill includes a discount, exemption, support or premium. Does this letter reflect what I actually pay?
No. The figures shown in the letter are based on the standard Council Tax charge for your property band, without any reductions or premiums.
If you receive a discount, exemption, Council Tax support or are subject to a premium, the amount you actually pay may be different from the figures shown.
Your new annual bill will be sent in March for the next financial year, and this will show the charges and any reductions that apply to your circumstances.
What if my household struggles to pay the increased Council Tax?
Support is available for some residents who are on a low income or experiencing financial hardship.
You may be eligible for means-tested Council Tax Reduction (CTR) or other forms of assistance. Information about eligibility, a benefit calculator which can provide an estimate of your entitlement to CTR and how to apply can be found on the Benefits and support pages.
Other non-means-tested reductions are also available, as is the option to move to paying over 12 months instead of 10.
If you are concerned about paying your bill, we encourage you to visit the above pages to find out of any of the schemes fit your circumstances, and then to seek advice as early as possible rather than waiting until payment becomes difficult.
How can I share my views?
Residents can take part in the Council's engagement survey and provide feedback on spending priorities and potential savings.
This is also where you can show your support for our proposal to challenge the government for a fairer funding deal for Wandsworth.
I have recently moved. Why have I received this letter?
The letter has been sent to the person currently recorded as the primary Council Tax account holder for the property at the time the mailing was prepared.
If your circumstances have changed, please ensure your Council Tax account details are up to date.
You may have already informed us that you have moved, and we are waiting to action this. If you have not already done so, tell us you're moving.
Why is just my name on this letter?
Although the letter is addressed to the primary account holder, everyone named on the Council Tax bill is jointly and severally liable for the charge. This means each person named on the bill is legally responsible for ensuring the full amount is paid.