Wandsworth criticises ‘astonishing’ changes to proposed Mansion Tax

Councils across the country, including those expected to be among the most heavily affected, have warned the Government that the proposal is badly designed. In Wandsworth, around 12,500 households could be liable for the tax, with the funding raised going to the Treasury rather than being reinvested locally. 

Cllr Morritt said: “It is astonishing that the Government appears to be doubling down. The mansion tax risks distorting the housing market, penalising long-standing borough residents, and is seriously flawed. For many of our residents these aren’t mansions they are simply family sized homes.” 

“Wandsworth residents should not be treated as a cash cow for national Government, particularly when not a single penny raised from this tax would come back to support local services.” 

Over the summer, the leaders of four London boroughs: Wandsworth, Richmond, Westminster and Kensington and Chelsea wrote jointly to the Chancellor urging the Government to rethink plans for a new High Value Council Tax Surcharge, or ‘Mansion Tax’, warning it would unfairly target residents who already contribute heavily to the public finances.  

The letter argues that households across the four boroughs could end up paying more than half of the revenue expected to be raised across the entire UK.  The four borough leaders urged 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. 

In addition to this new tax, Wandsworth Council is facing a 40% reduction in government funding over the next three years. Unless the Government rethinks its cuts, residents will see Council Tax rise by 94%, the equivalent of £958 for a Band D property. 

Help us fight the cuts: Share your views about how we should reduce spending. 

The Council will use findings from the engagement, to build a proposal under the Sustainable Communities Act. This is where we will formally ask Government to reconsider the proposed funding reforms.