Reeves Reportedly Plans Council Tax Surcharge on Homes Over £2 Million

Overview

• Homes valued above £2 million are the reported target, with the extra charge added to council tax bills each year.
• Policy design under discussion includes either revaluing properties or applying a surcharge to existing Bands F, G and H to determine who pays.
• Almost 600,000 London properties are already in Bands F–H, with large concentrations in boroughs such as Westminster and Kensington & Chelsea.
• The Treasury is reported to be aiming for £400–£500 million in annual revenue, with details on deferrals and liability rules yet to be confirmed.
• Tax experts caution that decades‑old banding could distort who pays, question a partial revaluation, and note the burden would fall heavily on London and the South East.