Red Lines

Labour councils say "no" to Tenant Tax

15 Labour councils in London have confirmed they will not implement the Tory Government's Tenant Tax.

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On 21st November the Housing Minister announced that the Tenant Tax (Pay to Stay) would no longer be compulsory for local councils to implement.

Today, 15 Labour Housing Leads from across London councils have co-signed a letter to the Evening Standard confirming they will not implement the Tenant Tax. 

The Tenant Tax was part of the Housing and Planning Act 2016, and would have seen council tenants in households earning £40,000 or more in London charged an extra 15% tax on income over that threshold.

Labour councillors from across London came together to campaign against the Tenant Tax, including writing directly to the Housing Minister with stories from real Londoners who would have been affected by the Tenant Tax.

Joint Letter from Labour Housing Leads in London - 

Working people should not be forced to pay more tax simply because they are council tenants. That is what the Government’s Tenant Tax (Pay to Stay) proposed to do.

We welcome the announcement by the Housing Minister that this policy will no longer be compulsory, and thank him for listening to our concerns and those of real Londoners who would have been forced to pay 15% more tax.

As Housing Lead Members for Labour-run councils across London, we confirm that we will not impose the now voluntary Tenant Tax. We call on all other boroughs and housing associations to pledge to do likewise.

We remain deeply concerned and opposed to the Government’s plans to force councils to sell ‘high value’ council homes and to make people less secure in their homes by banning new lifetime tenancies for council tenants.

We hope to work with the Housing Minister further on rethinking these proposals.

Yours sincerely,

Cllr Diarmaid Ward, London Borough of Islington

Cllr Averil Lekau, Royal Borough of Greenwich

Cllr Katherine Dunne, London Borough of Hounslow

Cllr Farah Hussain, London Borough of Redbridge

Cllr Sirajul Islam, London Borough of Tower Hamlets

Cllr Glen Hearnden, London Borough of Harrow

Cllr Stephanie Cryan, London Borough of Southwark

Cllr Khevyn Limbajee, London Borough of Waltham Forest

Cllr Alison Butler, London Borough of Croydon

Cllr Matthew Bennett, London Borough of Lambeth

Cllr Ken Clark, London Borough of Newham

Cllr Clayeon McKenzie, London Borough of Hackney

Cllr Pat Callaghan, London Borough of Camden

Cllr Damien Egan, London Borough of Lewisham

Cllr Ahmet Oykener, London Borough of Enfield 

Pictured - Labour councillors at the Axe the Act demonstration on Wednesday 23rd November 2016. 


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