Angela Rayner leaves door open to new homes tax which would hammer London by an extra £7.5bn

Angela Rayner has kept the door ajar for a new property tax which would land London with an additional £7.5 billion bill.The Housing Secretary highlighted criticism of the current council tax system and said any replacement would be a matter for the Budget, expected in the autumn.Andy Burnham has in the past backed a new property tax to replace council tax and stamp dutyThe London StandardThe new levy, which would replace council tax and stamp duty, would be based on 0.48% of the value of a property.It would double to 0.96% for second homes, empty properties and those owned by foreign nationals.A majority of London households in more than 20 boroughs would end up paying more, according to an analysis.Housing Secretary Angela Rayner walks with housing minister Matthew Pennycook as they leave after a Cabinet meeting in Downing StreetAFP/GettyAsked if the Government was looking at reforming property taxation, Ms Rayner told BBC Breakfast: “Well, I think at the moment people feel that it's the early 90s when council tax was last looked at.“It's something that I know is topical at the moment.”She signalled that the issue would be looked at ahead of the Budget.Pressed whether she would be voicing a view on this in Cabinet, she added: “Well, I'm sure I'll be given opportunity when we're looking at the Budget as part of that Budget process, but I'm not going to be saying that today.”Ms Rayner also ruled out rent controls despite Mr Burnham having said just days ago that a rent freeze was one of the issues which the Government would consider as part of its measures to ease the cost of living.She said: “That is not something that we’re looking to do because we’ve seen what’s happened in areas like Scotland. It hasn’t necessarily brought rents down.”She argued that the experience of rent controls in Scotland had led to them being used as a “floor” rather than a “ceiling” for letting levels.Read MoreGreen Party leader Zack Polanski criticised the Government over rent controlsPAHowever, her stance on rent controls was immediately criticised by Green Party leader Zack Polanski and former Labour leader Jeremy Corbyn, MP for Islington North.Mr Polanski posted on X: “This is the one single measure that would help the most and save £billions. All talk. Continuity Starmer.”Mr Corbyn added: “There is no hope of ending homelessness if we do not stand up to vested interests and take action against extortionate private rents. “We need rent controls, and we need them now.”Mayor of London Sir Sadiq KhanPAMayor of London Sir Sadiq Khan was among those who voiced support for rent controls alongside Mr Burnham in 2023.Ms Rayner admitted that the Government may struggle to meet its goal to build 1.5 million new homes by 2029.