An extraordinary political row has erupted between RBKC Council Leader Cllr. Elizabeth Campbell and Kensington and Bayswater MP Joe Powell over the Government’s proposed high-value property surcharge — dubbed the “mansion tax” by opponents.
Battle lines were drawn after Conservative Cllr. Campbell wrote to residents’ associations last week claiming 53% of properties in the borough would be affected by the proposed annual levy on homes worth more than £2 million — a story The Citizen exclusively revealed.
In an astonishing broadside, Labour MP Mr Powell then accused the Council Leaderof using a “false” figure by confusing council tax bands with actual property values.
He stormed: “RBKC have once again shown they either can’t count or are prepared to lie to their residents for political purposes.
“Their claim that 53% of properties in the Borough will be affected by the new high value property tax surcharge is entirely false scare mongering.”
As background to the row, the Labour Government is proposing an annual surcharge on residential properties valued at more than £2 million and Mr Powell accepts that 53% of homes in Kensington and Chelsea do fall within the top three council tax bands — a genuine council tax statistic.
But, he argues, that is not the same as saying those homes are worth more than £2 million – many Band F, G and H properties fall below that threshold and therefore would not be liable for the surcharge.
The MP also points to Land Registry sales data which, he says, shows only around 15% of properties sold in recent years changed hands for between £2 million and £5 million, suggesting only around one in five properties would be affected.
He described Cllr Campbell’s claim as being “wrong by a factor of 150%” and accused the Conservatives of exaggerating the impact of the proposed tax to alarm residents.
Colville ward Cllr. Jack Reason (Labour and Co-operative) also waded into the row and challenged Cllr. Campbell’s figures. Responding to a post on Instagram by The Citizen flagging up its story, he wrote: “This isn’t an accurate analysis of the homes that would be affected by this surcharge.”
The Citizen asked Cllr Campbell to address Mr Powell’s central allegation that the Council had wrongly conflated the proportion of homes in the top three council tax bands with the proportion worth more than £2 million. Sidestepping that specific point, the Council Leader defended the council’s methodology.
She said: “Of course the local Labour MPs want to play down the impact of the Labour Mansion Tax. However, our estimate is based on information and guidance provided by their government. It outlines the properties most likely to be impacted in April 2028 when this regressive new system is likely to be brought in.
“Our residents would like to see their local representatives campaign against this punitive tax, not quibble over the number of homes it’s likely to hit. I believe our estimate is correct, based on all the information to hand, and we will be publishing our figures and how we got to them on our website in the coming days.
“Rather than lying, or hiding the truth, we are being completely open and transparent. We will continue to stand up for residents, providing updates to help them understand what is being proposed.”
The war of words shows no sign of cooling. A furious Mr Powell hit back: “Instead of wasting taxpayers’ money on fake letters, the Council leadership should focus on sorting out their painfully slow response to the cyber attack and get their systems fully back up and running, so residents can engage again with their local authority on planning, licensing and council tax administration.”
To be continued…!
Cllr Campbell’s letter
