The deputy leader of Harrow Council, whose home is valued at over £4 million, has criticized the proposed mansion tax as “an absolute disgrace.”
The tax, officially called the High Value Council Tax Surcharge, is part of Chancellor Rachel Reeves’ Autumn Budget and affects properties worth more than £2 million.
Conservative Leader of Harrow Council, Cllr Paul Osborn, tabled a motion on November 27 condemning the budget.
The motion specifically addressed the proposed surcharge, emphasizing its impact on residents of high-value London properties.
Deputy Leader Cllr Marilyn Ashton seconded the motion.
She stated that she is one of several council members with homes valued above £2 million.
Her Stanmore property, reportedly worth £4.27 million, could face an additional £5,000 annual tax starting in 2028.
The High Value Council Tax Surcharge applies on top of existing council tax and is structured into four bands.
Properties between £2 million and £2.5 million will pay an extra £2,500.
Those between £2.5 million and £3.5 million will pay £3,500, while properties from £3.5 million to £5 million will pay £5,000.
Homes valued at £5 million or more will face the highest surcharge of £7,500 annually.
Addressing the council, Cllr Osborn said, “This is not an attack on mansions, it’s an attack on people who happen to live in London whose property prices have gone up more than other parts of the country.”
He added that residents, particularly pensioners, fear they may need to sell their homes to cover the extra charge.
“When they bought their house it was worth nothing like the amount it is now. They are stuck with this, they don’t have the income to cover the cost,” Osborn said.
He noted that some residents may resort to using their property as collateral or having the estate pay the tax after death.
The government has pledged to implement a support scheme for those struggling to pay the surcharge.
Details of the High Value Council Tax Surcharge support scheme are expected to be clarified during a public consultation early next year.
Council leaders remain critical, arguing that the surcharge disproportionately affects long-term residents in London without addressing broader council tax reform needs.
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