Wandsworth residents pay less council tax than anyone else in England. Not because the council is exceptionally well-run, but because of how the government funding system works. That system is about to change dramatically.
Here’s what residents need to know about why bills are so low now, and why they’re likely to rise sharply in the next few years.
Why is Wandsworth’s council tax so low – and what’s changing?
Wandsworth’s Band D council tax is £990 – the lowest in England. The national average is around £2,100. That’s a gap of more than £1,100.
This isn’t because Wandsworth Council is amazing at saving money. It’s because of how councils get their funding.
Councils get money from two main sources: council tax (money they collect from residents) and central government grants (money allocated by Westminster).
For decades, the government funding formula gave Wandsworth and a handful of other wealthy London boroughs far more central government money than most councils. This meant Wandsworth could charge residents less locally while still funding services.
Other councils – particularly in poorer areas – got less from government. They had to charge residents more to make up the difference.
The government is rebalancing the system to direct more money to poorer areas with greater needs.
The government assesses Wandsworth as significantly overfunded compared to its actual needs. The council should get less from government and raise more from residents.
To cushion the blow, the government is protecting 95% of Wandsworth’s current income. This means the council will only lose 5% of what it gets now, rather than the much larger amount it’s technically overfunded by.
But there’s a catch: that 95% protection assumes councils use “the full tax flexibility available to them.”
In plain English: Wandsworth needs to raise council tax to keep the protection.
What does this mean for residents?
The government expects Wandsworth to close the gap between what residents pay now (£990) and what councils typically charge (around £2,100).
Closing that £1,100 gap would mean more than doubling council tax bills over the next few years.
The government has given Wandsworth special flexibility to make these increases:
- 2026-27: Normal rules apply – council can raise tax by up to 5% without a referendum
- 2027-28 and 2028-29: No referendum required – council can raise tax by more than 5% without asking voters
The government is giving this flexibility to just six councils: Wandsworth, Westminster, Hammersmith & Fulham, Kensington & Chelsea, City of London, and Windsor & Maidenhead. All have historically very low council tax bills.
If Wandsworth refuses to raise council tax, it might lose the 95% funding protection. That would mean bigger cuts to council funding than the protected 5%, either much deeper service cuts or forced tax rises anyway, and burning through reserves (savings) faster.
The council has high reserves now, but using them to avoid tax rises just delays the problem. Eventually, the money runs out.
Timeline: When will this happen?
February 2026: The council sets its budget for 2026-27. This is the first decision point – will they raise tax by 5%, or freeze it?
May 2026: Council elections. This is politically sensitive because Labour won control in 2022 partly on a promise to keep council tax low.
April 2027 onwards: The real increases likely start here, when the council can raise tax above 5% without a referendum. This is when Wandsworth will need to start closing the gap to the national average.
Leader Simon Hogg has repeatedly said he will keep council tax at its current low level. Last week, when asked directly if he would raise taxes, he said: “No, of course not. We will be keeping the same low council tax.”
But the financial reality may force his hand. Council finance officers warned in July that bills might need to double, triple, or even quadruple under the funding changes. The question is whether he makes increases before the May 2026 election (risking defeat) or after (if Labour wins).
Either way, Wandsworth residents should prepare for significantly higher council tax bills in the next few years. The decades of paying the lowest council tax in England are coming to an end.
Council tax support schemes help people on low incomes pay their bills. These schemes will continue, though the details may change. If your income is low or you’re receiving certain benefits, you may qualify for a reduction. Contact the council to check eligibility.
The government has said it expects councils like Wandsworth to protect vulnerable residents even while raising general council tax levels.
The government says the current system is unfair. A house worth £10 million in Westminster can have lower council tax than an ordinary family home in Blackpool or Darlington. The government argues that residents in wealthy areas should pay more locally, and government funding should go to areas with greater needs and fewer resources.
By redirecting £250 million from the six wealthy councils to poorer areas, the government says it’s creating a fairer system and better value for taxpayers nationally.
Where can I find more information?
The government’s full consultation document on the funding settlement is available at gov.uk. The consultation closes on 14 January 2026.
Wandsworth Council will set its 2026-27 budget at a meeting in February. The date hasn’t been confirmed yet, but budget meetings are public and residents can attend.
You can check your council tax band and current bill on your council tax statement or at gov.uk/council-tax-bands.
