Rachel Reeves to Introduce New Levy on High-Value Homes

Britain's finance minister, Rachel Reeves, aims to introduce a levy on high-value homes in her annual budget. Reports indicate this move seeks to generate billions to meet fiscal targets, following a decision to forgo raising income taxes. London's high-value homes will be notably affected.

Rachel Reeves, the UK's finance minister, is preparing to propose a new levy targeting high-value homes in her forthcoming annual budget, as per recent reports by the Telegraph. This levy is seen as a measure to secure billions in revenue crucial for meeting the government's fiscal objectives.

The announcement follows recent shifts in policy suggesting Reeves might not go ahead with anticipated income tax hikes due to improved fiscal forecasts. As a result, Britain's borrowing costs have surged, creating ripples across the financial realm.

To implement this levy, the government plans to revalue 2.4 million properties in bands F, G, and H, primarily focusing on those in London and the southeast. A separate surcharge will be attached to council tax bills for the most expensive 300,000 properties, bolstering the financial plan.

(With inputs from agencies.)