Kemi Badenoch Instructs Lawyers to Challenge Central Government Over Wandsworth's 94% Council Tax Surge

Conservative Party leader Kemi Badenoch has initiated legal action against the central government over local authority grant reductions, stepping in after a flagship Conservative-led council put forward an unprecedented 94 percent council tax increase.

Speaking during an interview on BBC Newsnight, Badenoch condemned the proposed tax hike in Wandsworth, located in south-west London, labeling the scale of the impending increase as "outrageous." However, she placed the blame entirely on central government policy rather than the local Conservative leadership.

The Conservative Party has formally instructed legal counsel to investigate whether the government's planned £84 million annual funding reduction to Wandsworth can be legally blocked. Local leaders have attributed the dramatic increase in household levies directly to this central funding reduction.

Wandsworth has historically been promoted by Conservatives as a prime model of low-tax local governance, having maintained some of the lowest domestic property levies in the country for decades. An average Band D household in the borough currently pays just over £1,000 annually, in contrast to figures surpassing £2,000 across an expanding number of neighbouring London boroughs.

Under the new proposals unveiled at a council meeting on Tuesday, annual payments for local residents would nearly double, rising by an estimated £958. This total increase is split evenly between the borough council's own requirements and the precept levied separately by the Mayor of London. A definitive vote on the measure is scheduled for early next year.

Badenoch directly criticised the Labour administration's financial strategy, accusing ministers of apparent political bias in how central funds are redistributed. She claimed that central government appears to be taking money away from areas that do not vote for the Labour Party and reallocating it toward regions that do.

Addressing the borough's predicament, Badenoch argued that Wandsworth Council was not pursuing the sharp rise out of choice. Instead, she maintained that the local authority had been forced into the decision because central government had abruptly eliminated 40 percent of its grant funding, necessitating an immediate legal assessment by the Conservative Party.

During the broadcast, presenter Matt Chorley challenged Badenoch by noting that even with a 94 percent rise, Wandsworth residents would still be paying less than taxpayers in many other parts of England. In response, Badenoch rejected the comparison, stating that a sudden near-100 percent increase would severely disrupt household finances, as family budgets cannot easily absorb such rapid adjustments regardless of national averages.

When asked to state an alternative percentage increase that she would support, Badenoch declined to provide a figure. However, she questioned why a 40 percent reduction was being imposed on Wandsworth when regional figures such as Greater Manchester Mayor Andy Burnham had not been required to find equivalent 40 percent spending cuts. She also defended her past ministerial record in local government during previous Conservative administrations.

The financial pressure on local authorities extends beyond Wandsworth, with several other London boroughs currently evaluating their legal options. Councils in Westminster, Richmond, and Kensington and Chelsea are exploring whether to invoke the Sustainable Communities Act to mount a collective formal challenge against the central funding reductions.

Because of the scale of the grant reductions enacted by central government, ministers have lifted the statutory 5 percent cap on annual council tax increases for these London boroughs. The Royal Borough of Windsor and Maidenhead in Berkshire has likewise had its cap removed, allowing these local authorities to introduce larger rate rises without putting the decision to a local referendum.

Wandsworth Council's Conservative deputy leader addressed the proposed tax increase earlier in the week, acknowledging that higher charges would be neither easy nor welcomed by residents. The deputy leader described the central government's funding formula as unfair and confirmed that the council would continue to challenge the policy through every available channel.

Conversely, the local Labour opposition has strongly condemned the local administration's plans. Simon Hogg, the leader of the Labour group on Wandsworth Council, described the 94 percent proposal as an outrageous and unnecessary move driven by panic from an administration that he claimed does not know how to manage local services properly.

The political dispute has also involved the borough's parliamentary representatives. Three local Labour MPs—Rosena Allin-Khan, Fleur Anderson, and Marsha de Cordova—have refused to endorse the council's formal appeal against the funding cuts. They maintained that the local authority had been left in a healthy financial position before the Conservatives gained control in the local elections held earlier this year.

Responding to the controversy, a spokesperson for the Ministry of Housing, Communities and Local Government stated that local authorities ultimately decide their own council tax levels, though they are expected to prioritize taxpayers when doing so. The ministry defended its broader reforms, stating that it is overhauling an outdated system to ensure resources reach areas of greatest need, while implementing transitional arrangements to prevent any council from encountering an abrupt financial cliff edge.