London Mayor Boris Johnson has broken ranks with Conservative Party policy and urged a revaluation of council tax levels, it has emerged.

Giving evidence to the Commons communities and local government committee's inquiry on fiscal devolution yesterday, Mr Johnson said council tax payments could be lowered for many homeowners were there to be a revaluation exercise and the introduction of new bands.

Valuation levels have remained stuck since the system was first introduced in 1991 by Tory grandee Lord Heseltine in the aftermath of the abolition of community charge – commonly dubbed the poll tax.

‘If you compare what a Russian oligarch is paying on his stuccoed schloss in Kensington in annual council tax compared to what such a gentleman might be asked to pay in Paris or New York or anywhere else it is quite stunning,' Mr Johnson told the MPs.

Mr Johnson insisted he was no supporter of the Liberal Democrats proposal to have a mansion tax imposed on all properties worth more than £2m.

‘In fact, I vehemently oppose such an idea but we cannot go on forever without looking at our council tax valuations,' he added.

The London Mayor said he would support the introduction of new council tax bands.  ‘There's a reason this hasn't been done,' Mr Johnson added.

‘It's because it's very difficult and very unpopular. But that doesn't mean that it's not the right thing to do.'

Mr Johnson's position echoes comments he made last May when the London Finance Commission reported on granting fiscal autonomy to the capital.

Then the Conservative mayor said proposals to give London controls over the full suite of property taxes - council tax, business rates, stamp duty - were needed to fund infrastructure to cope with the capital's burgeoning population which is set to reach 10 million by 2030.