Brief
Chancellor John Healey abandons plan to widen mansion tax at Budget
The Labour chancellor said expanding the levy would be too controversial, halting a proposal that could have affected 272,000 homes.
By Felo News Desk · Published
Chancellor John Healey announced that the government will not extend the so‑called “mansion tax” to properties valued at £1.5 million, a move that would have doubled the number of homes subject to the levy to an estimated 272,000, Daily Mail reported.
Analysts had warned that the expansion would have brought one in four detached houses in London into scope and that charges of up to £7,500 a year would fall disproportionately on the capital and the South East, where four‑fifths of affected properties are located.
Healey said the proposal, due to take effect in 2028, was deemed too controversial to pursue. The decision follows criticism from Labour MPs, including former Treasury minister Rachel Blake, and comments from the Sunday Times that Healey wanted broader public consensus before raising the charge.
Key facts
- John Healey said the mansion tax will not be expanded to £1.5 million homes. (dailymail.co.uk)
- The proposed expansion would have affected about 272,000 properties. (dailymail.co.uk)
- Charges under the expanded levy could have reached up to £7,500 a year. (dailymail.co.uk)
Sources
- [1] dailymail.co.uk — originally reported as “John Healey 'drops' plans to extend Labour's mansion tax in Budget”
