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Londoners 'underpaying £3.1bn of property tax' as huge council bill hikes loom

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Burford, R. (2026, September 24). Londoners 'underpaying £3.1bn of property tax' as huge council bill hikes loom. Evening Standard. https://www.standard.co.uk/news/politics/london-property-council-bill-increases-b1298255.html

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Evening Standard · collected 2026-09-24 · by Rachael Burford

Quick Summary

A leading think tank reports that Londoners underpay by £3.1 billion annually in property taxes due to combined stamp duty and council tax discrepancies. The Resolution Foundation’s analysis suggests this underpayment disproportionately benefits London residents at the expense of those elsewhere in England. As council tax bills are set to increase significantly, with some boroughs like Westminster considering a 200% rise, concerns are mounting about the impact on homeowners, particularly pensioners who may be asset-rich but cash-poor.
Written by AI on 2026-09-24, from this article's own text only (the story summary below draws on all the coverage).

AI analysis

Story summary

The Home Economics report by the Resolution Foundation claims that Londoners underpay £3.1 billion in property taxes each year when considering combined stamp duty and council tax rates adjusted for true home values. Policy analyst Hannah Aldridge argues this shortfall turns into a substantial subsidy for London from households across England. The Labour government's Fair Funding Review allowed five boroughs with historically low council tax levels—Kensington and Chelsea, Westminster, City of London, Wandsworth, and Hammersmith and Fulham—to increase their bills beyond the usual 5% ceiling. Specifically, Westminster faces a potential 200% hike unless services are significantly cut. Deputy leader Peter Graham from Wandsworth council, responsible for finance, acknowledged that imposing record-high council tax rises was not an easy decision but necessary to maintain service levels.

Written for “London Property Tax Underpayment” on 2026-11-02, grounded in this article and the 0 other(s) covering the same event.

Story

📰 London Property Tax Underpayment
Economy/Business · 1 article(s) covering the same event.

Compared with similar articles

This article reads leans left and hedges 7% of its claims. Each row says how that neighbour differs.
Evening Standard
⚖️ Leans left Hedges 1 of 11 claims Outlet record 65/100
“The articles discuss different aspects of property taxes in distinct geographic regions (Scotland and London) with no overlap in the specifics of the events or outcomes described.”
Evening Standard
Hedges 3 of 19 claims Outlet record 65/100
“The articles discuss different aspects of property taxes in London, with Article A focusing on potential tax rises on high-value properties and Article B highlighting a think tank's report on underpaid property taxes.”
Evening Standard
Hedges 3 of 10 claims Outlet record 65/100
“The articles discuss different aspects of property tax and housing issues in London but do not describe the same specific incident.”
Evening Standard
Hedges 0 of 16 claims Outlet record 65/100
“Article A discusses underpayment of property taxes in London, while Article B addresses concerns about taxing young Londoners for social care reforms. These are different topics related to taxation but describe distinct events.”
Evening Standard
⚖️ Leans left Hedges 0 of 19 claims Outlet record 65/100
“The articles discuss different aspects of London's financial issues with property taxes and council finances, not the same specific incident.”
Daily Mail
Hedges 2 of 40 claims Outlet record 68/100
“Article A discusses underpayment of property taxes in London, while Article B focuses on price reductions for high-end properties due to market conditions.”
Daily Mail
Hedges 4 of 40 claims Outlet record 68/100
“The articles discuss different aspects of property taxes without describing the same specific incident or time.”
How this article was measured signals, leaning charts, publisher record, byline, topics and claims

Signals How these are calculated →

Claims extracted
15
sentences that state something as happening or true
Uncertain
7%
1 of 15 hedged ("reportedly", "may", "according to")
Leaning
Leans left
of the writing, not the subject · beta estimate
Publisher signals
65/100
Evening Standard's corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
1
Economy/Business
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-09-24 · how these are computed

How this is being covered How these are calculated →

Article leaning vs. publisher reliability
Source leaning vs. consistency

Publisher

Evening Standard · 8091 article(s) · 68 correction(s) detected
Running correction rate · 68 correction(s)

Who wrote this

Rachael Burford
61 article(s) here · 1 carrying a prediction
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Also by Rachael Burford
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 61 articles by Rachael Burford →

Topics

Kensington London Londoners Wandsworth Westminster

Subjects

Westminster GPE · 4× Wandsworth GPE · 3× Chelsea ORG · 2× Fulham ORG · 2× Hammersmith GPE · 2× Kensington GPE · 2× London GPE · 2× Londoners NORP · 2× Home Economics ORG · 1× the Resolution Foundation ORG · 1×

Narrative

Policy analyst Hannah Aldridge said: "Our housing taxes fall heaviest on those least able to afford them and have turned into a huge £3.1 billion subsidy for those living in London paid for by households across the rest of England.” Under Labour’s Fair Funding Review five boroughs with historically very low council tax levels - Kensington and Chelsea, Westminster, City of London, Wandsworth and Hammersmith and Fulham - were given permission by ministers to hike bills by more than 5%, the usual ceiling for increases.
framing: assertive · carried by 1 article(s) · first seen 2026-09-24
🔮 Westminster has said council tax will have to go 200% unless there are major cuts to services.
2026-09-24 · Evening Standard
Londoners 'underpaying £3.1bn of property tax' as huge council bill hikes loom · assertive framing

Claims (15 extracted, 1 hedged)

Londoners underpay £3.1 billion of property taxes each year, a leading think tank has said. asserted
tank → underpay → taxes
The Home Economics report also called for stamp duty to be scrapped, arguing it prevents 100,000 home purchases every year. When stamp duty and council tax were combined and the true value of homes taken into account, the Resolution Foundation calculated that in 2024-25 Londoners paid £3.1billion too little in property taxes. asserted
Londoners → call → taxes
Policy analyst Hannah Aldridge said: "Our housing taxes fall heaviest on those least able to afford them and have turned into a huge £3.1 billion subsidy for those living in London paid for by households across the rest of England.” Under Labour’s Fair Funding Review five boroughs with historically very low council tax levels - Kensington and Chelsea, Westminster, City of London, Wandsworth and Hammersmith and Fulham - were given permission by ministers to hike bills by more than 5%, the usual ceiling for increases. asserted
boroughs → say → increases
Westminster has said council tax will have to go 200% unless there are major cuts to services. asserted
tax → say → services
Wandsworth council’s deputy leader Peter Graham, who is cabinet member for finance, said it did not take the decision to impose a record council tax rise lightly. asserted
it → say → rise
He said: “We promised that we’d be honest with residents. “Council tax will need to rise unless Government thinks again. asserted
Government → say → residents
And it must think again.” asserted
it → think → ?
It comes as nearly 62,000 more London homeowners could be forced to pay the new “mansion tax” if Mr Burnham decides to lower the threshold for paying it to £1.5 million, according to experts. uncertain
Burnham → come → experts
The original plans unveiled by his predecessor Rachel Reeves, which apply to properties worth over £2 million, will hammer homeowners with additional annual charges of between £2,500 and £7,500 from April 2028. asserted
which → unveil → April
But if Mr Healey decides to lower the threshold to £1.5 million it will be even more punitive on the capital. asserted
it → decide → capital
Hammersmith and Fulham, Wandsworth, Kensington and Chelsea, Westminster and Camden would be the boroughs hardest hit by extending the reach of the levy. asserted
Hammersmith → hit → levy
Wandsworth, Kensington & Chelsea, Westminster, and Richmond councils have written to Chancellor John Healey urging him to reverse the planned levy. asserted
councils → write → levy
They say residents will be forced to pay over £270m each year, which would be more than half of the £400m which is expected to be raised. asserted
which → say → 400
Pensioners who purchased their homes many years ago and are asset rich but cash poor would be hardest hit, they argue. asserted
they → purchase → homes
In response to the councils’ criticism of the wealth tax, a Treasury spokesperson said: “This tax is expected to raise more than £400 million a year to help to fund public services and it will address a longstanding unfairness in our country, where a Band D home in Darlington or Blackpool pays more in council tax than a £10 million mansion in Mayfair.” asserted
home → say → Mayfair
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