Kemi Badenoch warns Rachel Reeves she would pressure pensioners out of their houses if she DOUBLES council tax for the highest-band properties
Rachel Reeves is considering a move that could see the doubling of council tax for more than a million households.
The Chancellor is said to be eyeing up a 100 per cent increase on the two highest council tax bands – G and H.
The plans would see average bills rise from £3,800 to £7,800 for residents in a Band G household.
And for those living in a Band H household, the typical bill could increase from £4,580 to £9,120, according to The Telegraph.
Critics have suggested that this move would overwhelmingly impact households in London and the South East.
Kemi Badenoch, the Conservative leader, added it would leave many pensioners ‘forced out of their home’ as they are unable to afford the drastic increase.
She said: ‘Creating new higher council tax bands will hammer people who have lived in the same house for decades, particularly pensioners, some of whom will be unable to pay this new tax and be forced out of their home.’
Nigel Farage, leader of Reform UK added: ‘It is an assault on assets and will cause huge consternation amongst older people living in properties they bought many years ago.’
Ahead of the Budget on November 26, Reeves has been tasked with filling a £30billion black hole in the public finances.
Chancellor Rachel Reeves (pictured speaking at the CBI National business dinner in June 2025) has been tasked with filling a £30billion black hole in public finances ahead of the Budget at the end of the month
Conservative leader Kemi Badenoch (pictured speaking at a rally on October 30, 2025) said that the plans to increase tax would ‘hammer’ people who have lived in the same house for decades, particularly pensioners
She is said to view council tax increases as one of the easiest ways to raise necessary funds.
Reeves is also reported to be considering a 20 percent charge on the holdings of those quitting the country for low tax havens which could net the Treasury £2billon.
It comes after fears were raised earlier this year that as many as 16,500 millionaires would leave the UK this year because of hostile tax changes and plummeting economic confidence.
The new ‘settling up charge’ is said to be very likely because the UK, alongside Italy, is currently an ‘outlier’ among G7 countries who already impose similar taxes.
The Chancellor has been engulfed by scandal since the Daily Mail revealed that she had been illegally renting out her south London property for £3,200 a month without the proper licence.
After initially telling Sir Keir Starmer she had been unaware of the rules, she was humiliated when emails between her husband and their lettings agency, Harvey & Wheeler, revealed extensive conversations about the need to secure the paperwork.
Reform UK leader Nigel Farage (pictured at a press conference on October 27, 2025) said the Chancellor’s plans ‘is an assault on assets’
Now a source has told this newspaper that before engaging that company, Ms Reeves and her husband had approached blue-chip estate agency Knight Frank about managing the property – and were warned about the need for the licence.
The revelation raises fresh questions about the Chancellor’s initial insistence to the Prime Minister that she was not aware of the legal requirements, given that two separate estate agents raised the issue.
A Knight Frank spokesman said: ‘It is standard procedure to notify all clients of their legal and regulatory obligations when letting a property.’
HOW CHANCELLOR’S STORY HAS CHANGED…
Rachel Reeves faces renewed pressure as The Mail On Sunday reveals a second estate agent she would need a rental licence on her south Dulwich home
Wednesday, Oct 29
18.32 Rachel Reeves’ spokesman tells the Daily Mail that she ‘had not been made aware of the licensing requirement’ but as soon it was brought to her attention, she took immediate action and applied for one.
23.26 Downing Street releases a letter in which the Chancellor tells the Prime Minister: ‘Regrettably, we were not aware that a licence was necessary’ and apologises for an ‘inadvertent mistake’. Sir Keir Starmer replies by saying it was ‘regrettable’ the licence was not sought sooner but accepts her apology as a sufficient resolution of the matter.
Thursday, Oct 30
16.14 No 10 reveals Sir Keir and his independent adviser on Ministerial standards, Sir Laurie Magnus, have been passed ‘new information’ on emails sent and received by the Chancellor’s husband regarding their rental arrangement but says it would be ‘inappropriate to comment further’.
17.45 Reeves reveals the existence of emails between her lettings agency Harvey & Wheeler and her husband Nicholas Joicey showing that he had been told that letting out the family home would require a licence. One message from the agent in July last year reads: ‘We will need to apply for a licence under the Selective Licensing Scheme via Southwark council.’
In a further letter to the PM, Ms Reeves said the emails showed the agent agreed to apply for the licence but did not do so due to a member of staff leaving.
But she adds that ‘I accept it was our responsibility to secure the licence’ and also takes ‘responsibility for not finding this information yesterday’.
In a rebuke to the Chancellor, Sir Keir replies that it was ‘clearly regrettable’ that the information in the emails wasn’t shared with him the day before but still says he regards this as an ‘inadvertent failure’ with no need for further action. Sir Laurie says he found ‘no evidence of bad faith’.
Saturday, Nov 1
11.29 Asked to comment on The Mail on Sunday’s revelation that Ms Reeves was also warned by estate agent Knight Frank – as well as Harvey & Wheeler – that she would need a licence, the Chancellor’s spokesman refers simply to Sir Laurie’s opinion on October 30 and the published email correspondence with Harvey & Wheeler that says a licence would be required.
