Londoners hit with 71 per cent increase in 'mayoral precept'

Londoners have been hit with a 71 per cent increase in Sadiq Khan’s ‘stealth tax’ since the Labour chief became mayor.

People living in the capital are currently paying £471 towards the Mayoral General Precept, which is an additional charge added to council tax bills to ‘support the Mayor’s activities’, according to The Telegraph.

This figure has shot up from an average of £276 since Mr Khan became London Mayor in 2016.

He now reportedly plans to increase it even further by £37 (nine per cent), imposing yet more financial woes onto already cash-strapped families.

It comes just days before more than five million Londoners are set to vote in the upcoming London Mayoral elections on May 2, with Khan seeking a third four year term in office, which would make him the longest ever serving London Mayor.

Londoners have been hit with a 71 per cent increase in Sadiq Khan ‘s (pictured) ‘stealth tax’ since the Labour chief became mayor.

People living in the capital are currently paying £471 towards the Mayoral General Precept, which is an additional charge added to council tax bills to ‘support the Mayor’s activities’ (Stock image)

The Mayoral General Precept is a levy that is imposed across a number of combined authority’s across the UK including Cambridgeshire and Peterborough, Greater Manchester, the Liverpool City Region and London.

In Greater Manchester, the Mayoral General Precept is also used to fund the fire service, which is different to other areas where the fire service is funded by a separate levy.

According to the figures seen by the Telegraph, Londoners are now paying more towards it than any other combined authority.

The Mayoral Precept was introduced in London by the Greater London Authority in 2000 when Ken Livingstone was London Mayor.

Mr Livingstone increased it 152 per cent by the end of his second four year term in 2008, while Boris Johnson lowered the levy by 11 per cent after he was ousted as London Mayor in 2016.

A spokesman for Mr Khan told The Telegraph: ‘This election is a close two-horse race between Sadiq, and the hard-right Conservative candidate for mayor who couldn’t be more out of touch with our city and its values.

‘Susan Hall would cancel free school meals and reverse Sadiq’s TfL fares freeze. She is a supporter of Donald Trump, cheered Liz Truss’s disastrous mini-budget, and has promoted racist comments by Enoch Powell on social media.’

The Mayoral Precept was introduced in London by the Greater London Authority in 2000 when Ken Livingstone (pictured) was London Mayor

Mr Livingstone increased it 152 per cent by the end of his second four year term in 2008, while Boris Johnson (pictured) lowered the levy by 11 per cent after he was ousted in 2016

It comes as Mr Khan recently urged ministers to end the ‘everyday extortion’ of unfair service charges for leaseholders.

He demanded legal powers for leaseholders to withhold service charge payments where the justification has not been set out in writing.

He said: ‘If leaseholders face large increases in their service charge without it being clearly explained what it’s paying for, they should be able to do something about it – including having stronger rights in law.’

Mr Khan also said he wants the Government to use the Leasehold and Freehold Reform Bill currently going through Parliament to make it easier for leaseholders to take their landlords to court to challenge unreasonable costs.

Leaseholders should also get quicker redress by expanding the remit of the housing ombudsman to investigate service charge hikes, the mayor argued.

Leaseholds are a form of home ownership that gives the householders the right to live in a property for a fixed number of years but can also mean having to pay service charges to the freeholder, who owns the land.

London has 1.4 million leasehold properties, a quarter of all such properties in the country.

The Leasehold and Freehold Reform Bill has faced criticism for failing to outlaw this housing system branded ‘feudal’ by Housing Secretary Michael Gove.

While the legislation bans the sale of new leasehold houses, except in exceptional circumstances, it does not ban the sale of new leasehold flats, which make up 70% of properties affected.

Action the Labour London mayor has taken to support leaseholders includes introducing a requirement for 990-year leases as standard for shared ownership homes funded by City Hall.

But he does not have the power regulate existing homes or change current legislation, and so is urging ministers to act, upping the pressure on Mr Gove who has already been accused of heavily diluting the Bill.

Mr Khan said: ‘Sky-high service charges can be financially crippling for people living in flats or who are shared owners. At their worst, they amount to the everyday extortion of leaseholders and a shameful abuse of power by landlords and freeholders.

‘While many landlords act responsibly, we need stronger rights for leaseholders to act against those who don’t, with new powers of redress and the ability to withhold service charges that simply aren’t justified.’

He added: ‘I’ll keep campaigning for the end of our current system of leasehold ownership, and the introduction of commonhold as the new default tenure for flat owners in London and across the country.’

He also described Conservative rival Susan Hall as a ‘hard-right Tory candidate who will never stand up to vested interests in the property market’.

A spokesperson for the Department for Levelling Up, Housing and Communities said: ‘Unjustified increases in service charges are completely unacceptable, which is why we are committed to strengthening protection for leaseholders, and are bringing forward reforms through the Leasehold and Freehold Reform Bill. This will empower them and make it easier to challenge unfair costs.’

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