Chancellor Reeves plans to raise council tax on high-value homes to fill a £20bn–£50bn gap, targeting London and aiming to raise £4.2bn.

Chancellor Rachel Reeves is reportedly planning to raise council tax on high-value homes as part of her November 26 Budget to address a projected £20bn-£50bn fiscal shortfall. The proposed reforms could double rates for properties in the highest two bands, generating up to £4.2bn, with revenue redirected to the Treasury rather than local councils. The move, aimed at making property taxation more progressive, would primarily affect London and is seen as a less disruptive alternative to a wealth exit tax. Reeves is also considering a 2% income tax rise paired with a national insurance cut for pensioners and landlords to raise £6bn. While no final decisions are made, the plans have sparked political debate, with critics warning of capital flight and accusations of breaking Labour’s tax pledge.