The Finance Overview and Scrutiny Committee of Wandsworth Council met on Wednesday, 18th February 2026, to discuss the proposed budget and council tax for the upcoming financial year, additions to the capital programme, and the council's growth and economic development strategy. Key decisions included the recommendation to freeze the main element of Wandsworth's council tax for the fourth consecutive year while increasing the adult social care precept by 2%. The committee also reviewed proposed additions to the capital programme totalling £52.3 million and received an update on the council's growth and economic development initiatives.

Budget and Council Tax Setting 2026/27

The committee discussed the proposed budget and council tax for the 2026/27 financial year. Councillor Ireland, Cabinet Member for Finance, presented the recommendations, which included freezing the main element of the Wandsworth Council Tax for the fourth year running, while implementing a 2% increase in the adult social care precept. This approach aims to protect vital services, particularly adult social care, which is facing increasing demand and cost pressures. Councillor Ireland highlighted that Wandsworth's council tax would remain the lowest in the country.

The report detailed the council's financial position, noting the challenging macroeconomic environment with sustained inflation and rising service demand. Despite this, Wandsworth's sound financial management, high reserves, and low debt were presented as strengths. The budget proposals also included a £45 million transformation programme aimed at modernising services and achieving efficiencies.

Significant debate occurred regarding the use of reserves to balance the budget. Councillor Graham questioned the sustainability of this approach, highlighting that the proposed use of £38 million in reserves for 2026/27 was equivalent to a 50% increase in council tax if reserves were not available. Councillor Corner echoed these concerns, stating that the use of reserves was plugging an ongoing budget deficit. Councillor Ireland defended the use of reserves, stating that they belonged to the people of Wandsworth and should be used to support them, particularly during the cost of living crisis and to invest in transformation.

The report also detailed the impact of the Local Government Finance Settlement, which indicated a significant loss of grant funding for Wandsworth due to the Fair Funding Review, leading to a 5% cash cut in funding. This settlement disadvantages boroughs like Wandsworth with historically low council tax rates and strong tax bases.

The committee considered the proposed council tax amounts for 2026/27, which included a freeze in the council's main element of council tax and a 2% increase for the adult social care precept. The total Band D council tax for the majority of the borough was set to increase by 3.1% to £1,020.35.

The committee agreed to endorse the recommendations on their way to Cabinet, with the opposition abstaining due to concerns about the budget's sustainability.

Proposed Additions to the Capital Programme

The committee reviewed proposed additions to the General Fund Capital Programme, totalling £52.3 million. These additions are intended to support the council's ambitions for a fairer, greener, and more sustainable borough. The proposed investments include improvements to leisure facilities, enhancement of public realm and community spaces, and support for independent living.

The financing for these additions is a mix of grants and contributions (£7.6 million), developer contributions (£5.1 million), council resources (£39.6 million, including borrowing), and £9.4 million from borrowing specifically for Invest to Save schemes.

Key proposed additions include:

• £19.5 million for a new family and community building at Portswood Place as part of the Alton Estate regeneration.
• £12.5 million for leisure facilities, including new 3G pitches and enhancements to the Leisure Infrastructure Plan.
• £8 million for highway and public realm improvements, encompassing road safety, traffic management, lighting, and signage.
• £5 million for Disabled Facilities Grants to support disabled residents in adapting their homes.
• £2.9 million for the Northcote Development, which includes a library, community hall, and residential units.
• £2.9 million over four years for tree planting initiatives.

Concerns were raised about the level of borrowing, with Councillor Graham highlighting that the council plans to borrow over £1.1 billion, with £37 million added in this report, and that this borrowing is for basics like filling potholes. Councillor Ireland defended the borrowing, stating it was necessary to correct decades of underinvestment in assets and that borrowing remains affordable.

The committee noted that over half of the capital programme is funded by developer contributions, with £236 million expected over the next six years. However, concerns were raised about the potential impact of government reforms to the Community Infrastructure Levy (CIL) and Section 106 agreements, which could reduce affordable housing delivery and CIL revenues, impacting the council's ability to finance capital investment programmes.

The committee endorsed the recommendations for additions to the capital programme, with the opposition abstaining due to concerns about the affordability and review of certain expenditures, such as the Bradstow School site.

Wandsworth Growth and Economic Development

The committee received an update on the council's Growth and Economic Development strategy, focusing on the Wandsworth Growth Plan, key growth sectors, employment and skills initiatives, support for SMEs, and the Supply Wandsworth programme.

The Wandsworth Growth Plan, published in August 2025, aims for a Place-led path to growth with three key themes: People First, Placemaking, and Inclusive Growth. The plan aligns with national and regional objectives and highlights opportunities in sectors such as life sciences, creative industries, visitor economy, and food and horticulture.

The report detailed Wandsworth's strong labour market, with low unemployment and a high employment rate. However, it also identified in-work poverty as a significant challenge, with a high proportion of residents in poverty living in working households. Initiatives like Work Match and Connect to Work are in place to support residents into employment and career progression. Work Match has supported over 3,600 residents into work since 2013, and Connect to Work aims to support economically inactive residents with health conditions and disabilities.

Support for SMEs, start-ups, and entrepreneurs is provided through the Wandsworth Enterprise Hub, which offers information and resources, and a programme of events and campaigns. UK Shared Prosperity Funding has supported numerous SMEs and entrepreneurs, creating jobs and new businesses. The council also promotes affordable workspaces for local businesses.

The Supply Wandsworth programme, funded by S106 contributions, aims to help local businesses access supply opportunities from new developments and bid for council contracts. The programme has developed resources such as a supplier directory and training materials, and is expanding its reach to other local anchor institutions.

Partnerships with organisations like Apple, the Royal College of Art, the University of Roehampton, Higgins, Bugler Group, and Landsec were highlighted as crucial for delivering the council's growth ambitions. The Clapham Junction Growth Corridor, extending from Battersea and Nine Elms to Clapham Junction and Wandsworth Town, is identified as a key area for future development, with capacity for significant new housing.

The committee noted the report for information.

The meeting concluded with Councillor Stock thanking members for their contributions and highlighting the importance of transparent, evidence-based decision-making for the benefit of residents.