The Conservative Party has begun preparations to formally challenge the Labour government’s revised local government funding formula after Wandsworth Council indicated it may raise council tax by 160% from April 2027.
Senior Conservatives and Wandsworth councillors met this week to agree next steps, with members of the shadow local government team present. Those in attendance included the party chairman, Kevin Hollinrake, and the shadow local government secretary, James Cleverly, according to those briefed on the meeting.
Statutory action and a formal appeal
The council will begin a statutory consultation of residents before submitting a formal appeal to ministers asking for the funding settlement to be reconsidered, the party said. If ministers reject the appeal, the Local Government Association (LGA) may itself escalate matters by lodging a separate appeal on the borough’s behalf.
Wandsworth Conservatives told PoliticsHome they would not accept a settlement that leaves the borough worse off, arguing the changes amount to a cut in grant funding of around 40%. The council has one of the lowest council tax rates in England, the party added, and said the government’s reforms penalise its residents.
“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,”
— Wandsworth Conservatives, statement to PoliticsHome.
Government position and the redistribution debate
The government has defended the new funding arrangements, saying they are designed to target areas with higher levels of deprivation so that the distribution is “truly based on need”. That approach, ministers argue, will channel more support to councils with greater demand for services.
Opposition and local Tory figures counter that the change shifts resources away from some London boroughs, creating acute pressures on local services and forcing otherwise low-tax areas to contemplate steep increases in council tax.
Local impact and political consequences
PoliticsHome previously disclosed that Wandsworth officials were preparing for what it described as England’s largest-ever single council tax rise. Councillors blame the projected reduction in central grant funding for precipitating the move.
The dispute places the Conservative front bench in a delicate position. Shadow ministers and party executives are publicly backing the borough’s action, framing it as a defence of local residents against an unfair settlement. At the same time, the escalation risks widening the national debate about funding formulas, which Labour says corrects long-standing regional imbalances.
- 160% – potential council tax increase signalled by Wandsworth for April 2027.
- 40% – figure cited by Wandsworth Conservatives for the reduction in the borough’s grant funding.
- Next steps include resident consultation, a formal ministerial appeal, and possible LGA intervention.
| Actor | Position |
|---|---|
| Wandsworth Council / Conservatives | Preparing statutory consultation and formal appeal; say funding cut ~40% |
| Conservative shadow team | Backing appeal; met to discuss escalation (Hollinrake, Cleverly present) |
| Government | Defends reforms as reallocating funds to areas of higher deprivation |
How ministers respond to the borough’s appeal will be closely watched. A rejection could prompt the LGA to take collective action on behalf of councils affected by the settlement, while an acceptance would force the government to revisit the criteria it used to redistribute funding.
The outcome will shape both local finances in affected boroughs and the wider political narrative ahead of the next round of council budgets, with potential ramifications for the national parties as they argue over the fairness of public spending formulas.
