Conservative leader Kemi Badenoch has accused Labour councillors of leaving Wandsworth Council with a substantial budget deficit and criticized planned central government funding reductions. Badenoch stated that Labour left the south London authority, which the Conservatives regained control of in May after a single term under Labour, with a "historic" £137 million financial gap.
Badenoch also highlighted that the council's grant funding from the central government is set to be cut by 40 percent. She attributed these cuts to reforms under Angela Rayner, which she described as controversial and aimed at directing more funds to Labour-voting areas in the north. Badenoch made these remarks during a canvassing event for a crucial by-election that could grant the Conservatives an outright majority on the council.
"Labour left Wandsworth Council with a historic £137m budget gap," Badenoch wrote on social media following her visit. "And to make things even worse, the Labour Government are cutting Wandsworth's council funding by a massive 40%. It's no wonder Wandsworth's residents are fed up. Labour just doesn't seem to care about them."
She suggested that electing the Conservative candidate, Otto Jacobson, would enable the party to achieve the majority needed to address the financial situation. A spending review by the incoming Conservative administration indicated that they inherited "the largest government cuts, the largest projected overspending and the largest predicted budget gap in Wandsworth's history" from the previous Labour administration.
The report further claimed that the prior Labour leadership utilized reserves to balance the budget and increased staff by 14 percent since taking office in 2022. It also alleged that spending and borrowing increased significantly without a corresponding rise in revenue. The review noted that Wandsworth, historically known for low council tax, had its previous administration viewing this as a "problem, not a positive."
According to the review, Wandsworth's council tax would need to increase by over 230 percent to balance the budget without urgent intervention. However, the Conservative administration pledged to find savings, increase efficiencies, cut waste, and limit the impact on residents' bills while protecting essential services and fulfilling manifesto promises.
Currently, the annual bill for a Band D property in Wandsworth is the lowest in England at £1,020, with half going to the council and the remainder to the Greater London Authority. The national average for such properties is more than double this amount. Reports suggest Wandsworth is contemplating a 160 percent increase in its portion of the council tax next year, which would represent a historic percentage rise.
Wandsworth Labour leader Simon Hogg contested Badenoch's claims, stating, "When Labour ran Wandsworth Council we had the lowest council tax in the country, the highest reserves of any neighbouring borough and no external debt." He added, "The new Conservative administration has brought chaos. They are extreme and divided and clearly don't have a plan for how to run the council."