Westminster joins fight against the "Mansion Tax"
Four London councils, including Westminster, have written to the Chancellor warning that a new high-value council tax surcharge, dubbed the "mansion tax," will fall overwhelmingly on their residents. Together with Kensington and Chelsea, Richmond and Wandsworth, the councils say 55% of everything the surcharge is expected to raise nationally, an estimated £270 million, will come from just their four boroughs.
The surcharge applies to homes worth more than £2 million from April 2028, adding between £2,500 and £7,500 a year depending on value. Around 84,000 homes across Greater London are thought to fall into that bracket, though the figure hasn't been confirmed by official valuations.
Cllr Paul Swaddle, Leader of Westminster City Council, argues the policy takes too blunt an approach to wealth. "High property values do not always translate into high household incomes," he said, warning that residents whose homes have simply risen in value over time, without any change to their actual earnings, could be unfairly caught out.
The Treasury says the surcharge is designed to correct a long-standing imbalance in the council tax system, and says the money will help fund local services nationally, with support and exemptions available for those who struggle to pay. It expects to raise around £430 million a year across England. The government's own independent forecaster has cautioned that the true amount raised is uncertain, since owners near each price threshold may have an incentive to keep valuations just below the line.
