Wandsworth Council Set to Challenge Government Funding Reforms
Says new arrangements will see financial support fall by 40%
Borough residents might need to brace for considerably higher bills in the future. Picture: AI Generated
August 26, 2026
Wandsworth Council is set to challenge Government reforms it predicts will see its central funding slashed by 40 per cent by 2030.
Wandsworth Council’s Conservative administration said it will launch a formal challenge to the Government’s overhaul of local authority funding rules, which aims to shift more cash towards areas with higher deprivation. The council is expecting a 40 per cent cut to its core funding as a result of the changes, or £84million a year, by 2030.
The Local Democracy Reporting Service (LDRS) understands the council plans to consult residents and use the feedback to submit a revised funding proposal to the Government, which will have to formally respond. The council could challenge any rejection of the proposal.
The administration said it would not accept a deal that left Wandsworth residents worse off.
Wandsworth Conservatives said: “The previous Labour administration in Wandsworth failed to stand up for local residents, choosing instead to roll over while the Labour government cut 40 per cent of Wandsworth’s funding. That decision has real consequences for our borough and unfairly punishes Wandsworth residents.
“Wandsworth Conservatives will always stand up for our residents. That is why we have officially launched a challenge to the decision taken by the Labour Government.
“We will not sit back and accept a funding settlement that leaves Wandsworth residents worse off. We will continue to fight for a fair deal for our borough and the funding it deserves.”
The Conservatives have repeatedly said since taking control of the council in May that it faces a “financial crisis” due to the reforms, along with high levels of planned borrowing and use of reserves under the previous Labour administration. However, Labour has accused the Conservatives of painting a misleading picture of the borough’s finances.
The council has been given the power to raise council tax by more than 4.99 per cent from next year without the usual requirement to hold a referendum due to the reforms, although it has not confirmed its plans for this.
It is expected to officially launch a public consultation on challenging the Government’s funding reforms after a by-election this Thursday (27 August), which could decide majority control of the council, following the resignation of former Labour councillor Lizzy Dobres to take up a “politically restricted” role.
If the Conservatives win, the group will have a two-seat majority to control the council whereas at the moment they rule as a minority administration.
Responding to the Conservatives’ claims, a Wandsworth Labour spokesperson said: “Wandsworth Conservatives are gripped by internal civil war and are not up to the job of running the council.
“Wandsworth has zero external debt and the highest reserves of any neighbouring borough. They need to sit down with a spreadsheet and get on with the job instead of playing politics and misleading local residents.”
The outcomes of a spending review carried out by the Conservatives are expected in September, when proposed service cuts are due to be laid out in full.
The administration said the review aims to cut wasteful spending, find savings and protect vital services.
A Ministry of Housing, Communities and Local Government spokesperson said: “We have consulted extensively on reforming the outdated council funding system to ensure money goes where it is most needed, following on from a long-standing consensus.
“We’re also protecting councils through transitional arrangements so no area faces a cliff edge.”
Charlotte Lilywhite - Local Democracy Reporter
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