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London town halls that face having to impose the largest council hikes ever seen are set to launch a legal process challenging the Government’s decision to slash their funding.
Wandsworth, Kensington and Chelsea and Westminster councils are expected to officially appeal the significant cuts.
Leaders of the three boroughs met with shadow local government minister Sir James Cleverly and Tory party chairman Kevin Hollinrake on Wednesday to discuss challenging the new settlements, it is understood.
An official announcement is expected to come as soon as Friday.
It is anticipated that the boroughs will exercise a legal power laid out in the Sustainable Communities Act 2007, which gives councils the right to submit proposals to the Government asking for the removal of legislative and other barriers that prevent them from improving the sustainability of their local area.
The local leaders agreed to launch a public consultation on the move.
Under the Government’s Fairer Funding Review the three Tory-led councils, along with Labour-led Hammersmith and Fulham, the City of London and Windsor and Maidenhead, will see the largest cuts to funding settlements.
Wandsworth is understood to be proposing raising council tax by as much as 160% as it faces losing ÂŁ84 million a year in funding by 2030.
Westminster has warned it will have to hike bills by up to 200% unless significant cuts are made to services.
The six town halls are exempt from the cap on raising council tax, set at 5%, from next year, which means residents’ payments will need to rise well above the national maximum to make up shortfalls.
Wandsworth Council is expected to announce the challenge after a crucial by-election, due to take place on Thursday, which could decide which party definitively runs the local authority.
At the most recent polls, in May, the Tories secured 29 seats on the council, placing the party one short of the 30 required for a majority.
