That’s over half of the total money the Government policy is expected to raise across the whole of the country.
The leaders of Kensington and Chelsea, Richmond, Wandsworth and Westminster Councils are calling on minister to pause the plans.
They say the proposed High Value Council Tax Surcharge is not a council tax as none of the money raised will remain in their boroughs.
In a letter to the government, the four council leaders said: “A home is the centre of family life, not an untapped tax stream. Our residents have often lived in the same home for decades. They have raised families there, built communities and lasting connections, and in many cases have seen the value of their homes rise even as their incomes have stayed flat or fallen.
“It is simply wrong to assume that everyone living in these homes is wealthy. If the government’s intention is to make the wealthy pay more, this is the wrong way to achieve it.
“This is a badly thought-out policy: one with limited revenue-raising ability, high implementation costs, and a hugely disproportionate impact on our residents.”
The letter, which was sent to the Chancellor, raises three specific concerns about the government’s proposals:
It is ‘disingenuous’ to call the proposal a Council Tax surcharge when the money won’t be spent locally
The deferral limit is far too low – it’s below the average salary for London and would mean that a couple on London Living Wage would face paying the tax
The government needs to provide clear guidance to councils on how it plans to implement the policy
Councillor Gareth Roberts, Leader of Richmond Council, said: “Many Richmond residents have lived in the same homes for decades, raised families, contributed to their communities and grown older locally and, in many cases, the value of their homes has risen dramatically, while their incomes and personal circumstances have stayed largely the same or even declined.
“What the government is doing is adopting a quick fix approach to try to solve the broken system of Council Tax. If the Government is serious about addressing the issue of local government funding they need to reform the whole system; messing around with a blunt approach such as this helps nobody, particularly given that the entirety raised with this new tax will go to the treasury and not a penny will go to fund services here in Richmond.
“Essentially, 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.”
