The new “mansion tax” on properties worth over £2 million announced at the autumn budget won’t help low-income families struggling to pay council tax.

That’s the verdict of housing experts and campaigners after chancellor Rachel Reeves unveiled the measure – intended to raise around £400 million per year – in the budget.

The high value council tax surcharge will be brought in from April 2028, the chancellor told MPs, and apply to around 100,000 properties.

“This will be collected alongside council tax , levied on owners,” she said. “It will be charged on less than the top 1% of properties.”

Heckled later about the decision to lift the two-child benefit cap, Reeves quipped to an opposition MP: “If you’ve got a house worth £5 million pounds… you can probably afford it.”

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