Three Conservative council leaders in London have written to Andy Burnham, accusing the government of "devolving blame" for council tax hikes. The leaders of Westminster, Wandsworth, and Kensington and Chelsea councils stated they are being compelled to significantly raise council tax or reduce services due to cuts in central government funding.
These changes follow a reform of council funding, which redirects more money to deprived areas. The Conservative leaders are seeking a review of this change, arguing it will "worsen the lives of local residents across London and the South East." However, the government maintains it is "fixing an outdated system" that previously favoured wealthy areas.
In their letter, Paul Swaddle of Westminster City Council, Robert Morritt of Wandsworth Council, and Elizabeth Campbell of Kensington and Chelsea Council asserted that the government's funding formula "punishes low tax councils." They added that these tax rises are in addition to a new top-up council tax on many homes in their areas, with none of the revenue being retained locally.
Six councils, including the three mentioned, along with the City of London, Hammersmith and Fulham, and Windsor and Maidenhead, have been granted two-year "funding realignment powers." These powers allow them to increase council tax beyond the 5% threshold.