Four boroughs fight back against unfair property tax

The letter argues that households across the four boroughs could end up paying around £275 million a year through the new tax, more than half of the revenue expected to be raised across the entire UK.  

The new tax is scheduled to come into effect in April 2028. There are concerns that landlords affected by the surcharge will pass additional costs on to tenants, placing further pressure on local housing costs. It also risks disproportionately affecting those who’ve seen their house prices rise over the years, but remain on a modest income. The cliff edges in how this tax is administered, may also see avoidance tactics being employed, to artificially bring down house values. 

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Cllr Robert Morritt, Leader of Wandsworth Council, said "We won't get to keep a single extra penny raised, with Wandsworth residents hammered to pay for those elsewhere.  

“Why should an additional tax on our residents’ houses, be spent so far from their homes?” 

Cllr Gareth Roberts, leader of Richmond Council, said the government "is seeing Richmond residents as cash cows that they can milk to fix funding gaps elsewhere in the country, irrespective of whether they can afford to pay this new tax". 

Cllr Elizabeth Campbell, leader of Kensington and Chelsea Council, said: "This is not a tax carefully targeted at the very wealthy. It lacks nuance and will hit pensioners, families and long-standing residents whose homes have risen in value while their incomes have not." 

Cllr Paul Swaddle, leader of Westminster City Council, said high property values "do not always translate into high household incomes, and it risks creating unfair outcomes for residents whose property value does not reflect their ability to pay". 

And in Wandsworth, Cllr Peter Graham, Cabinet Member for Finance, said: "Our residents already pay the Government a huge amount in tax. They shouldn't be hit with arbitrary bills that don't provide even a penny for our area. All Wandsworth will see is endless challenges and avoidance games. 

“This is the most badly designed tax on properties since the one on windows, 330 years ago.” 

The four borough leaders are urging the Chancellor to reconsider the proposals and work with local government on a fairer approach that does not place a disproportionate burden on London residents.