Conservative Leader Badenoch Challenges Government Over Council Tax Hikes

Conservative leader Kemi Badenoch announced that she has engaged lawyers to challenge the government regarding local funding cuts, following a proposed 94% increase in council tax by Wandsworth Council, a borough governed by the Conservative Party.

Badenoch described the significant tax hike in Wandsworth, a southwest London borough, as "outrageous" in an interview with BBC Newsnight. She stated that the Conservative Party has "instructed lawyers" to investigate whether an annual government funding cut of £84 million, which Wandsworth Council attributes to the substantial increase, can be legally contested.

The government maintains that reforms to the "outdated" council funding system are necessary to redistribute funds to areas with the greatest need. Wandsworth has historically maintained some of the lowest council tax rates in the country, with an average Band D property paying just over £1,000 annually, in contrast to more than £2,000 in many other London boroughs.

The proposed increase, amounting to approximately £958, would nearly double the current rate for a Band D property. This rise is split equally between council-set charges and those determined by the Mayor of London. A final decision on this increase is expected early next year.

Badenoch criticized the government's funding decisions, suggesting a pattern of diverting funds from non-Labour-voting areas to those that support Labour. "I think it is outrageous that Wandsworth Council is having to put up council tax - but they're not doing it because they want to," she told Newsnight, emphasizing that the situation is "completely wrong."

Despite the fact that Wandsworth's council tax would remain lower than many other councils nationally even after the increase, Badenoch stressed the impact on residents. "I think if you suddenly have a nearly 100% increase in your council tax, you would be extremely worried. Families have budgets," she stated. "Just because on average it's lower than somewhere else doesn't mean that people are going to be able to afford it."

When questioned about alternative proposals, Badenoch did not specify a different rate of increase but questioned the rationale behind a 40% cut imposed on the council, drawing a comparison to other regions where similar cuts have not been implemented.

Other London councils, including Westminster, Richmond, and Kensington and Chelsea, are reportedly considering similar actions to challenge government funding cuts, potentially using the Sustainable Communities Act. The aforementioned funding cuts have led to the suspension of the typical 5% annual council tax rise cap for these councils, as well as for Windsor and Maidenhead.

Wandsworth Council's Deputy Leader acknowledged that the higher council tax would be difficult for residents, stating, "Higher council tax will not be easy or welcome. We do not regard it as fair and will continue to challenge the government by every possible means."

However, the Labour leader of Wandsworth Council, Simon Hogg, called the increase "outrageous" and "unnecessary," blaming the situation on poor council management. Conversely, three Labour MPs representing constituencies within Wandsworth have reportedly declined to support the council's appeal against the funding cuts. These MPs argued that the council was financially stable before the Conservative Party took control earlier this year.