Government must rethink ‘mansion tax’, says Richmond Council Leader

The government needs to go back to the drawing board and rethink its proposed High Value Council Tax Surcharge – often dubbed a ‘mansion tax’, according to the Leader of Richmond Council.

Under current plans, owners of properties valued at more than £2 million will be hit with a surcharge of at least £2,500 from 2028.

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 piece 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 Richmond residents can afford to pay this new tax.”

Under the proposals, there would be four property bands for the surcharge:

Property value	Surcharge
£2 million to £2.5 million	£2,500
£2.5 million to £3.5 million	£3,500
£3.5 million to £5 million	£5,000
Over £5 million	£7,500

It is estimated that around 5,730 properties in the borough would be impacted by the proposals. And there are fears they could also discourage some residents from making sensible improvements to their homes, such as energy efficiency or adaptation works, if those changes risk pushing them above the surcharge threshold.

Councillor Jim Millard, Deputy Leader and Lead Member for Finance, added the Council is also concerned about a deferral mechanism included in the proposals, where residents who struggle to make the payment could secure the charge against their home.

He said: “The proposed deferral scheme may help some households postpone payment, but for older residents on fixed incomes and disabled people living in adapted homes, it could still mean a growing debt secured against their property.

“We want the government to review the proposed income and capital thresholds for deferral. National thresholds may not properly reflect the reality of living costs in London, particularly for households on modest or fixed incomes.

“Before any thresholds are finalised, ministers should carry out detailed, borough-level analysis to understand the likely impact on older residents, disabled residents and others who may struggle to pay.”

Richmond Council will continue to monitor developments on the High Value Council Tax Surcharge closely and ensure residents are informed.