Tories challenge Reeves to rule out new ‘damaging property taxes’ with Commons vote
Rachel Reeves will be challenged by the Tories to rule out several tax hikes in her upcoming Budget through a Commons vote on Wednesday.
Listen to this article
Chancellor of the Exchequer Ms Reeves is facing a reported £41billion shortfall at the Budget to meet her self-imposed financial rules.
To fill the gap, the Treasury is reportedly weighing up removing a capital gains tax exemption on expensive private homes and changes to inheritance tax (IHT).
The Tories say the measures would be “damaging” and “punitive” and are now planning to force a Commons vote on the levies after Parliament returns from recess.
Read More: Kirstie Allsopp slams Rachel Reeves' budget plans, likening Chancellor to Blackadder's Baldrick
Read More: Kemi Badenoch vows Tories will 'get all our oil and gas out of the North Sea'
Tory leader Kemi Badenoch said: "We will force a vote in Parliament to make the Government rule out these damaging property taxes once and for all."
Other measures which have been suggested include a new property tax to replace stamp duty on owner-occupied homes and a tax increase on landlords by imposing national insurance on rental income.
The scale of the challenge facing the Chancellor in the Autumn Budget was illustrated by the NIESR economic think tank warning that Ms Reeves is set for a £41 billion shortfall on her self-imposed rule of balancing day-to-day spending with tax receipts in 2029-30.
The financial hole comes after sluggish economic growth, higher borrowing costs and U-turns over welfare savings converged to worsen Britain’s fiscal outlook.
That would require tax hikes or spending cuts amounting to around £51 billion if she wanted to maintain her current level of "headroom", the buffer by which she avoids breaking the rule.
Mrs Badenoch added: "Rachel Reeves's tax bombshell has killed growth, opening up a £50 billion black hole in the public finances. Because of her decisions, she is now scrambling around trying to find new things to tax - it's a tax doom loop.
"Fresh from their war on private enterprise and farming, Labour look set to wage a new war on family homes with more taxes like those that Labour ministers seemingly want to avoid paying themselves.
"Conservatives don't believe you should pay capital gains if you sell your family home, nor should mums and dads be penalised for helping out their children.
"And if you've lived in your home for years, why should you now face a new punitive annual tax.
"Conservatives are the only party committed to living within our means so we can cut the deficit and lower taxes."
