A NEW tax could be slapped on foreign millionaires who own posh homes in the UK while living overseas, under plans being pushed by some in Cabinet.
Senior ministers backing the levy say it could raise billions to help plug the massive blackhole in our finances.
Jeremy Hunt is trying to find £50billion of spending cuts and tax hikes
The Chancellor’s Budget Plans
Rishi Sunak and Chancellor Jeremy Hunt are trying to find £50billion of spending cuts and tax hikes.
Experts warned the sheer scale of the cuts needed will plunge the nation into “austerity mark two”.
HOAR on Sunday understands that proposals to increase benefits in line with wages rather than the higher rate of inflation are being seriously considered.
Treasury insiders have warned that everything is on the table in the search to balance the books – including personal tax hikes.
One idea is a tax on wealthy foreigners who speculate on UK property.
It comes amid alarm they are buying up luxury British homes which then stand empty.
This pushes up already crippling house prices while turning some streets in the UK – particularly London – into virtual ghost towns.
The number of homes in England and Wales owned by people based abroad has tripled since 2010 – from 88,000 to 247,000.
They are valued at over £90billion according to estate agents, Benham and Reeves.
New PM Rishi Sunak is poring over plans for the delayed Halloween Budget now due on November 17.
He is set to impose a real-terms freeze on public spending from April 2025 to save an estimated £20bn a year.
The Resolution Foundation warned this will slash most public services by nine per cent – matching George Osborne’s the austerity cuts.
James Smith, their research director, said: “The new PM and Chancellor may choose instead for tax rises to fill in far more of the current fiscal hole than their Conservative predecessors in Downing Street did.”
