Financial crisis and Spending Review
Council Tax will need to rise unless government thinks again.
The challenge facing Wandsworth
Wandsworth Council has confirmed that, unless the government rethinks its cuts to local funding, Council Tax will need to rise by £958 for a Band D property.
The borough faces significant financial pressure from government funding reform, rising costs and growing demand for services. The government’s 'Fair Funding’ reforms will reduce Wandsworth’s funding by £84 million a year, equivalent to a 40% cut.
The Council has completed a comprehensive Spending Review to examine how services are funded and delivered. The review has identified savings, service changes and reductions in planned borrowing.
However, the scale of the government funding cuts means it still won’t be enough unless ministers agree a fairer settlement for Wandsworth residents.
We are fighting for a fairer deal
Wandsworth Council is making the case directly to Government that the proposed funding settlement is unfair to local residents. The borough should not be penalised for having run efficient services and kept Council Tax low.
We have submitted a proposal ahead of the government’s Autumn Budget and, jointly with Westminster City Council, the London Borough of Richmond upon Thames, and the Royal Borough of Kensington and Chelsea, will submit a proposal under the Sustainable Communities Act calling for a fair deal.
How residents can help
We want residents to tell us which services matter most to them. This will help us show government the impact its funding decisions would have locally and inform our final decisions about council spending and services.
The feedback we receive will help us understand which services residents value most as we plan how to respond to ongoing financial pressures while continuing to deliver the services people rely on.
What the Spending Review means
The initial stage of the Spending Review set out the scale of the crisis: a forecast £184 million budget gap by 2030/31 if nothing changed, reserves being used up, and planned borrowing heading towards £1.14 billion by 2035.
The final outcome of the Spending Review sets out the response. It protects the core neighbourhood services residents value most, stops or reviews schemes that are unaffordable or no longer viable, reduces planned borrowing, and changes how services are delivered so the Council can live within its means.
View the full Spending Review report for the detailed proposals.
What this means for Council Tax
If the government does not rethink its funding reforms, Council Tax will need to rise by £958 for a Band D property in 2027/28.
The exact Council Tax proposal will be confirmed through the Council’s formal budget setting process in February 2027. Figures will be shown clearly, including the Wandsworth element of the bill, the Greater London Authority precept once confirmed, the total percentage change and the property’s Band cash amount.
The Council will continue to seek a fairer settlement from government before final decisions are made.
Protecting cleaner, safer streets
The Council will prioritise cleaner, safer streets by investing in:
- Street cleaning
- Jet-washing
- More litter bins
- Graffiti removal
- Tree planting
- Stronger action on fly-tipping
- Tougher waste contract enforcement
- A new integrated enforcement team
- CCTV
- Preventing violence against women and girls
- 25 additional Metropolitan Police officers for Wandsworth
Housing, homelessness and regeneration
Some housing build schemes will not go ahead where they are unaffordable, not supported by residents or simply not deliverable.
This includes planned new build housing developments at Ashburton and Lennox estates, Fitzhugh Estate, Tyneham Close and Lavender Hill, as well as the proposed conversion of Morella Road into self-contained units.
The Council will continue with Block A of the Alton estate and review the wider scheme. It will also strengthen housing services, respond to the Regulator of Social Housing’s 'C3 rating’, improve work to make homes decent, tackle damp and mould, improve leaseholder support, and improve homelessness prevention and reduce temporary accommodation.
Children’s services and support for families
Children’s services will focus more on early help, family-based care, better placement commissioning and SEND reform, including action to reduce SEND transport costs.
Local breakfast club provision will be phased out as schools move to the national scheme, with transitional support where needed. The Youth Bus has ended, and some additional school-based support will not be extended.
Adult social care and public health
Adult social care will focus on helping residents stay independent for longer, managing demand and improving value for money while protecting statutory services.
This includes neighbourhood health, digital care technology, stronger reablement, reviews of care packages, commissioning changes and fairer charging arrangements.
The Borough of Sanctuary programme will end. The Council continues to meet its statutory duties to support residents.
Parks, libraries, leisure and transport
The Council will continue to invest in parks, libraries, leisure and culture, while reviewing how some services are delivered so they remain high quality, sustainable and focused on residents’ priorities.
The existing library network will be retained. Access for All will be replaced by a new leisure and culture concessions scheme, alongside targeted water safety training and free swimming lessons for eligible pupils.
How the Council will operate differently
The Council will also change how it operates, with stronger procurement, tighter budget monitoring, better income collection, reduced reliance on agency staff, digital improvements and a sharper focus on value for money.
The Wandsworth Grants Fund will be suspended for now but kept under review and reinstated if the Council’s finances allow. The Council will continue to keep residents informed in the most cost-effective way about the key developments and support they need to know about.
What happens next
Final details on Council Tax levels and budget proposals will be published as part of the Council’s formal decision making process in February 2027. Individual proposals will go through the appropriate scrutiny committee and Cabinet processes before final decisions are made.
We will continue to lobby government for a genuinely fair funding settlement and will update residents as the position develops.
Residents can view the full Spending Review report for the detailed proposals and supporting information.
Questions
View Spending Review questions and answers to find out more about the Council's plans for restoring long-term financial stability in the borough.