Wandsworth has revealed plans to become the only London borough to cut council tax in response to the cost of living crisis.
The Conservative flagship council has proposed cutting its share of bills by one per cent – meaning about a £5 reduction in its share of Band D bills from April.
However households will still see their total bill increase because London mayor Sadiq Khan is increasing his share of average bills by almost £32 a year.
Wandsworth’s Tory leader Ravi Govindia said: “That is one of the biggest challenges in London local government. Whatever the boroughs may do in terms of good housekeeping, that is always trumped by the scale of the mayor’s increases. That has become the hallmark of Sadiq’s mayoralty.”
Across London, more than half the 33 boroughs are planning to increase their share of bills by the maximum 2.99 per cent allowed by the Government.
When added to the mayor’s Greater London Authority “precept”, this will add about £70 a year to average bills in majority of councils – though households in bands A-D will receive a £150 one-off rebate from Chancellor Rishi Sunak to help them pay energy bills.
Wandsworth has been run by the Conservatives since 1978 but the party only holds a six-seat majority on the council and it is reportedly at risk of being seized by Labour in the May local elections.
Its total Band D charge would be £872.55 – the second cheapest in London after Westminster, on £864.13.
Hammersmith and Fulham council is the only London borough that has decided to freeze its share of bills. All others are increasing their demands, some only to provide extra funds for adult social care.
Mr Govindia denied the reduction was motivated by electoral concerns. He said Wandsworth’s increase last year had been limited to extra funds for adult social care and said the council had a 44-year record as a low tax authority.
The council has £188m in reserves and will spend £26.4m in 2022/23 on capital projects to upgrade parks, pavements and town centres.
Mr Govindia said: “We are really proud of our decades-long record of making sure that the residents of Wandsworth pay the lowest average council tax and I’m proud to be leading the only London council likely to cut council tax this year.
“I know the impact that the pandemic has had on our residents and when you factor in the current cost of living difficulties that people are facing, with rising heating and fuel bills, we just couldn’t, as a local council, heap further financial burdens onto people who are already struggling.”
Wandsworth has received £13.3m from the Government in “discretionary funding” to help keep bills down – the 12th biggest amount in the capital.
Mr Govindia said: “Wandsworth is in a unique position to be able to do this because of the way we have managed our finances and budgets over the years. That efficiency is now reaping the benefits for our residents with a net decrease in their council tax bills from April.”
Councillor Kim Caddy, Wandsworth’s cabinet member for finance, said: “Low council tax is synonymous with Wandsworth because of the efforts this council goes to in looking after its money properly. We hope that these proposals will really help make a difference.”
Mr Khan was a Labour councillor in Wandsworth between 1994 and 2006, prior to becoming an MP and subsequently mayor, and lives in the borough.
