Wandsworth Leader Pledges Council Tax Increases Under 5%
Borough will not take advantage of new Fair Funding reforms
Simon Hogg (centre) says 'value for money remains at the heart of everything we do'. Picture: Wandsworth Council
December 24, 2025
Wandsworth Council leader Simon Hogg has restated the borough’s commitment to keeping Council Tax low, following new government proposals that could allow local authorities to raise rates beyond the current 5% referendum threshold.
The comments come as councils across England assess the implications of the government’s emerging Fair Funding framework — a reform programme designed to update how local authorities are financed, how spending needs are calculated, and how resources are redistributed between areas. Although the details are still being finalised, the proposals have reopened long-running debates about the balance between local flexibility, national oversight, and the financial pressures facing councils.
Under existing rules, councils must hold a local referendum if they wish to increase Council Tax by more than 5%. Ministers have suggested that, as part of the wider funding reforms, this cap could be relaxed to give councils greater autonomy to raise revenue in response to rising demand for services, inflationary pressures, and the growing costs of adult social care.
Wandsworth, however, has made clear it does not intend to use any additional flexibility.
Council leader Simon Hogg said, “Wandsworth Council sets the lowest Council Tax in the country. We don’t want the freedom to increase Council Tax beyond the 5% referendum limit and my administration won’t be using it. It’s the right thing to keep Council Tax as low as we can.”
“Value for money remains at the heart of everything we do. Wandsworth runs excellent services with some of the highest reserves and lowest debt of any London borough, ensuring our financial stability without burdening residents.”
Wandsworth’s historically low Council Tax has been a defining feature of its financial strategy for decades under both Conservative and Labour administrations, and the borough has frequently highlighted its comparatively strong reserves and low borrowing as evidence that services can be delivered efficiently without placing additional strain on households.
Supporters of the Fair Funding reforms argue that councils need greater flexibility to respond to local pressures, particularly as many authorities face significant budget gaps and rising demand for statutory services. Critics, however, warn that allowing higher Council Tax rises could shift more of the financial burden onto residents at a time when many households are already struggling with the cost of living.
As the Fair Funding proposals continue through consultation and refinement, councils will be watching closely to understand how the reforms will affect their budgets in the years ahead.
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