The piece, which was confirmed as genuine, appeared on the side of a Poundland store just before the Jubilee last year, and depicted a young boy using a sewing machine to make Jubilee bunting.
The piece is now up for auction in the United States, with an estimated value between £320,000 – £452,000.
Lynne Featherstone, Liberal Democrat MP for Hornsey and Wood Green, commented:
“The Banksy piece added something different to Turnpike Lane and attracted many people to the area. It’s certainly a shame to have the piece ripped from the building and bizarrely put up for auction in the States – for hundreds of thousands of pounds. This just isn’t right.
“Poundland have said that they are not responsible, but I want to find out who is. I will be making enquiries today to Poundland and the building owners and will keep residents updated. I will also make sure that the company auctioning the piece are aware of the situation.”