Wandsworth Council has announced a proposed 94% increase in council tax for the 2027/28 financial year, a move that would end its 50-year status as the local authority with the lowest rates in the country.
The record-breaking proposal, confirmed on 15 September 2026, would see the bill for a typical Band D property increase by £958. Council leaders state the move is a direct response to a projected £84 million annual reduction in central government grant funding, driven by national “Fair Funding” reforms that reallocate resources from London to the North and Midlands.
For decades, Wandsworth was famously dubbed “Margaret Thatcher’s favourite council” due to its consistently low tax levels. However, the authority now claims that the scale of the funding shortfall makes the current tax regime unsustainable without a drastic correction.
Despite the high percentage, the council has stressed that the change is currently a proposal and would not take effect until April 2027. The council maintains that the national funding shift has left no other viable option to protect essential services.
Legal and National Challenge
Wandsworth is not acting alone in its opposition to the funding changes. The council is joining forces with Westminster, Richmond upon Thames, and Kensington & Chelsea to challenge the government’s reallocation of funds. The coalition of boroughs is using the Sustainable Communities Act to demand a rethink of the funding formula, arguing that the cuts disproportionately penalise London authorities.
A statement from Wandsworth Council indicated that the proposed tax increase will be necessary unless the government reconsiders the national funding reforms.
The “Fair Funding” reforms represent a significant shift in national policy, aiming to “level up” other regions of the UK. However, critics of the plan argue that it fails to account for the high costs of service delivery and the specific pockets of deprivation within the capital’s most affluent-looking boroughs.
