The Government should "scrap vanity projects" such as HS2 and learn a few lessons from Wandsworth Council's budgeting prowess according to a leading borough councillor.

Although things will be tougher for the authority in the coming year as grants from government are reduced, Councillor Guy Senior, cabinet member for finance and corporate resources, is confident that Wandsworth will balance its books and come out well.

He said: "For the next two years, things are as expected.

"We will have to make savings of £40m or thereabouts.

"Even if we put up council tax to the maximum allowed by government, that brings in just £2m.

"It is not good news but the savings we are making are progressing well so I am optimistic."

Coun Senior said that as council tax has remained low in Wandsworth, the borough will not be hit as badly by the reductions in grants as other boroughs where tax is high.

He said that the council would be essentially self-funded in a few years time, which he sees as a good thing, as believes money raised from business rates and taxes will cover the losses from central government.

Coun Senior said: "Wandsworth is a growing population, with the Nine Elms development which is good but they will need their bins collected too.

"Times are tough."

According to London Councils, a think tank covering the London boroughs, £7 in every £10 of central government funding will have been cut by 2020.

London is said to be facing bigger cuts, of 44 per cent since 2010 and the same expected in the next four years.

In December, Prime Minister David Cameron told the Richmond and Twickenham Times that councils have more spending power than before.

Coun Senior said: "I would not entirely agree with that.

"We have got more freedom to spend, certainly, restrictions have gone.

"We balance our books every year and have money in reserves, and we have to spend those.

"I think the Government should have to balance theirs."

Coun Senior went as far as to say that the government could learn lessons from Wandsworth Council.

He said: "I would scrap vanity projects like HS2.

"We have merged lots of council departments, they should look at merging government departments.

"There are many people on government payroll getting more than any member of council staff.

"They could look at all sorts of streamlining and efficiencies in back office functions.

"I have more hope with the new Secretary of State [for communities and local government].

"He is a glimmer of hope."

A report will go to council in January when more information will be known.