Simon Hogg, the Labour leader of Wandsworth council, stated, „Wandsworth council sets the lowest council tax in the country. We don’t want the freedom to increase council tax beyond the five percent referendum limit and my administration won’t be using it. It’s the right thing to keep council tax as low as we can.“
Wandsworth Council’s Stance
The London borough with the lowest council tax in the nation, Wandsworth, has declared that it will not utilize the emergency authority granted by the Government to raise its billing. Currently, Wandsworth charges an average annual council tax of £990, which is £27 less than any other borough in the capital and less than half of what residents pay in approximately two-thirds of London’s boroughs.
Last week, the Government announced that five London boroughs—Wandsworth, Westminster, Hammersmith and Fulham, the City of London, and Kensington and Chelsea—would be permitted to increase council tax by more than five percent during the fiscal years 2027/28 and 2028/29 without requiring a referendum. This allowance aims to address changes in the funding model, which will favor outer London and councils outside the capital at the expense of inner London jurisdictions.
Potential Political Risks
Expressing a willingness to raise council tax above inflation in 15 months may pose significant political risks for boroughs like Wandsworth and Westminster, especially as Labour holds a precarious grip on control of the formerly Conservative-led councils ahead of the London borough elections scheduled for May.
Labour secured Wandsworth in 2022 and maintains a narrow majority of 10 councillors. In Westminster, Labour leads with a slim majority of two councillors. Adam Hug, the Labour leader of Westminster City Council, remarked that his administration aims to implement efficiencies and savings while also hoping to introduce a new tourist tax.
Other Boroughs‘ Responses and Concerns
Kensington and Chelsea, currently under Conservative control, is evaluating a potential five percent rise in council tax from the next April. Nonetheless, a definitive figure will not be determined until February. The council has plans to enhance revenue through a second homes premium and by requiring 8,000 individuals to start paying council tax due to modifications in its reduction scheme.
Elizabeth Campbell, the Conservative leader of Kensington and Chelsea Council, expressed concern that many residents might find the predicted „exponential“ increases in council tax bills unmanageable should the Government’s emergency powers be utilized. She emphasized the need for comprehensive details, suggesting that the current approach does not provide a sustainable solution for long-term council financing.
Meanwhile, Hammersmith and Fulham is reportedly also hesitant to employ the new powers to raise bills beyond five percent. Labour leader Stephen Cowan remarked, „At a time when residents are struggling with the cost of living, we will not burden them with extraordinary new tax rises.“
Windsor and Maidenhead has also received authorization to exceed the five percent increase in council tax. A spokesperson for the City of London Corporation noted that council tax decisions will be carefully considered as part of the budget-setting process, ensuring to focus on delivering effective services for residents, workers, and visitors.
The Standard has reached out to Hammersmith and Fulham council for additional comments.
Bildquelle: Foto von Jay Alexander auf Unsplash
