Owners of houses over £2m will be hit with a new “mansion tax” in a move that Rachel Reeves hopes will raise £400m for the Exchequer, a leaked report has shown.

The new surcharge will be brought in by 2028/29, the Office for Budget Responsibility report has shown, which appeared online 30 minutes before the Chancellor stood up to deliver her Budget.

The new charge will be applied annually to homes placed in four price bands, started at £2,500 a year for homes in the lowest band worth £2m to £2.5m, rising to £7,500 a year for homes in the top band worth £5m and over.

More to follow.

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