Key facts
- Kemi Badenoch is using lawyers to challenge government funding cuts.
- The proposed council tax hike in Wandsworth is 94%.
- Wandsworth Council blames an £84 million annual government funding cut for the increase.
- The government is reforming the council funding system.
- Wandsworth's average Band D property currently pays over £1,000 in council tax.
- The planned rise would add £958, with half set by the council and half by the mayor of London.
Conservative leader Kemi Badenoch has announced she is instructing lawyers to challenge the government over local funding cuts, following a proposed 94% council tax increase in the Tory-run Wandsworth Council. Badenoch described the planned hike as "outrageous" and accused ministers of unfairly redistributing funds.
Wandsworth Council has blamed an £84 million annual government funding cut for the proposed increase. The government, however, maintains that it is reforming an "outdated" council funding system to better allocate resources based on need. The council, historically known for low council tax rates, currently charges about £1,000 for a Band D property. The proposed increase of £958 would nearly double this amount, with half of the rise determined by the council and the other half by the mayor of London.
Badenoch argued that the significant increase would still worry families, regardless of the average rate compared to other boroughs. She questioned why Wandsworth faced a 40% funding cut when other areas, like those represented by Andy Burnham, had not experienced similar reductions. She also defended her own record as local government minister, despite past Conservative governments having reduced council grants.
Changes to the funding formula, known as the Fair Funding Review 2.0, are set to redistribute funds among councils. Five London boroughs, including Wandsworth, and Windsor and Maidenhead Council, have been granted permission to raise council tax above the usual 5% cap for two years due to reductions in their central government funding. Other London councils like Kensington & Chelsea, Westminster, and Hammersmith & Fulham are considering similar challenges.
Wandsworth Council's deputy leader acknowledged the tax increase would be unwelcome but stated the council would continue to challenge the government. Conversely, Labour councillor Simon Hogg criticized the move as unfair and unnecessary. However, three Labour MPs representing Wandsworth constituencies have reportedly declined to support the council's appeal, citing the council's strong financial position prior to the Conservative takeover in May.