The pages explain why urgent action is needed and what the first stage of the spending review means. 

Wandsworth is facing a growing budget gap caused by a combination of national government funding cuts, rising costs, increasing demand for statutory services, pressure on reserves and rising borrowing. If no action is taken, the Council’s local share of Council Tax would need to rise by 230% by 2030. 

The Government has confirmed that Wandsworth will receive £84 million a year less cash by 2030, with no additional funding to cover inflation or growing demand for essential statutory services. The Council is also already using reserves to balance the budget, including £50 million in 2026/27 alone. At that rate, reserves would be used up quickly and could not continue to fund day-to-day spending. 

Borrowing more is not a sustainable solution either. Borrowing is used for long-term investment in assets and infrastructure, not for everyday running costs. More borrowing would add to the Council’s debt and increase the interest burden on future taxpayers. 

The new administration is therefore carrying out a comprehensive spending review, looking at all spending and borrowing plans in detail. The aim is to reduce the budget gap, slow the growth in debt, protect the core neighbourhood services residents rely on and make sure the Council can live within its means.

The explainer pages set out the main reasons for the crisis, including the reduction in government funding, the Council’s projected budget gap, the pressure on reserves and the forecast increase in borrowing.