Wandsworth Council's ambitious plan to raise council tax by 94% in 2027 has sparked legal threats and raised concerns among property investors. The proposed increase would see a typical Band D bill soar from approximately £1,020 to £1,978, an additional £958 annually. While the figure is eye-catching, it is not yet final, as the council will set its formal tax level through the budget process in March 2027.
Understanding the Proposed Increase
The current 2026/27 guide places Band D at £1,020.35, up from £990.07 the previous year. Adding the proposed £958 would translate to roughly £80 more per calendar month for residents, before any discounts or premiums. The scale of the increase is partly attributed to Wandsworth's historically low tax base, which sits £450 to £1,280 below the English average.
The government's local-government settlement has temporarily removed referendum principles for six low-tax authorities, including Wandsworth, for the 2027/28 and 2028/29 fiscal years. This exception allows these councils to rebalance their bills without triggering a public vote, a move the government argues is necessary to address long-standing disparities.
Funding Cuts and Legal Challenges
Wandsworth contends that the revised funding formula will slash its annual support by £84 million by the end of the three-year settlement period. The council's September spending review indicates reserves will dip to around £76 million, making local cuts alone insufficient to bridge the gap. This financial pressure underpins the aggressive tax hike proposal.
Conservative leader Kemi Badenoch has instructed lawyers to explore whether the £84 million reduction can be legally blocked, as reported by the BBC. This exploratory step is not yet a filed case or injunction. Separately, Wandsworth is pursuing a challenge through the Sustainable Communities Act, with other London boroughs considering joining.
Implications for Property Investors
For landlords, the impact is nuanced. In conventional whole-property tenancies, tenants typically bear the council tax. However, Wandsworth's liability guidance makes landlords responsible during empty periods and for houses in multiple occupation (HMOs). Such owners could face the additional £958 directly on a Band D property if the proposal stands.
This distinction is crucial for valuation. The increase does not automatically translate to a £958 reduction in every landlord's cash flow, and there is no evidence yet that it has moved local house prices. Investors should monitor the government's autumn funding decisions, any court filings, and the council's March 2027 budget vote as key decision points.
Market Context and Outlook
The situation highlights broader tensions in UK local government finance, where low-tax areas seek to rebalance while central funding shrinks. For investors, the uncertainty surrounding the final tax level adds a layer of risk to property investments in Wandsworth and similar boroughs. Until the arithmetic is settled, £1,978 remains a planning assumption rather than a definitive tax demand.