Mansion wealth tax wouldn’t fill Budget black hole, economists warn Reeves
Reeves issued warning over proposed ‘mansion tax’
- Rachel Reeves is reportedly considering a mansion tax on properties valued at £2m or more, with an annual charge of 1 per cent on the amount exceeding that threshold.
- Economists, including former IFS director Paul Johnson, warn that this proposed tax would not significantly address the estimated £50bn Budget deficit.
- Instead, experts advocate for a comprehensive overhaul of UK property taxes, suggesting reforms like making council tax proportional to current values and abolishing stamp duty.
- Housing secretary Steve Reed refused to rule out the mansion tax, while concerns were raised that it could harm the economy and London's property market.
- Critics, including Labour MPs and Liberal Democrats, argue for proper reform of the 'broken' property tax system rather than just short-term revenue generation.