Wandsworth Borough Council is set to borrow an additional £140 million by 2029/30, sparking heated debate over the borough’s financial future as reserves shrink and funding uncertainty looms.
Critics warn the strategy could leave the council exposed to long-term financial risks, while officials insist the borrowing is necessary to fund key projects and keep council tax low.
The new borrowing comes as the council dips into £11.5 million of reserves to balance its budget, a move that represents 5 per cent of the borough’s £204 million in usable reserves. Some councillors argue that using savings for day-to-day expenses is unsustainable, especially with looming government funding formula changes that could significantly impact Wandsworth’s revenue streams.
Despite freezing the main portion of council tax, the council approved a 2 per cent rise in the adult social care precept, a move some called misleading as residents will still see higher bills. By not increasing council tax fully, the borough is also forfeiting £2.2 million in potential revenue, a loss that some argue could have reduced reliance on reserves.
Debt balloons to nearly £2 billion
The council’s total debt is expected to reach £1.9 billion, with £80 million in interest payments due over the next five years. Some members voiced concerns over whether such high levels of borrowing represent sound financial management or a ticking time bomb. Officials defended the plan, saying investments in highways, public spaces, and net-zero projects would benefit residents long-term.
Meanwhile, growing cost-of-living pressures have increased demand for adult social care and housing support, further straining the budget. While the council has allocated reserves to ease the burden on struggling households, concerns remain that without a sustainable revenue plan, future funding shortfalls could force painful service cuts.
As financial uncertainty deepens, pressure is mounting on the council to outline a clear, long-term financial strategy. Whether the borough can balance ambitious investment with fiscal responsibility remains to be seen.
