Rachel Reeves is said to be considering doubling council tax for more than one million homes in order to fill a £30 billion hole in public finances, according to The Telegraph.
The tax hike would be applied to the two highest council tax bands (G and H).
Per the report, residents of a band G household would see rises of £3,800 to £7,600 and those in a band H home would see rises of £4,560 a year to £9,120.
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In the most expensive area of the country, the county of Rutland, Band H bills could soar to £10,800 a year.
While the tax rise is aimed at some of the wealthiest homeowners in the country, in tune with Reeves’ previous statement that those with the “broadest shoulders” should pay their “fair share,” critics of the scheme have suggested that it could force some pensioners out of their homes.
Many older people live on fixed incomes and would have no means of raising the extra cash required to keep up with the increases.
The rises are also expected to affect households in in London and the South East more than other regions of the country, official figures show that two-thirds of Band H homes are in London and the nearby counties.
It is believed that Reeves views council tax rises as one of the simplest means of raising the £30 billion needed to fill a black hole in public finances.
The plan was initially introduced by the renowned Institute of Fiscal Studies, who claim is could bring in as much as £4.2 billion a year by the end of the decade.
Neither confirming nor denying the statement, the Treasury issued this statement: “We do not comment on speculation around changes to tax outside of fiscal events.”
The chancellor will make a final decision on tax rises in the next few weeks, in time for the Autumn Budget which is scheduled for November 26.