Reeves warned tax hike on landlords will hurt tenants as critics say Budget move risks deepening housing crisis.

Warning to Chancellor Reeves about landlord taxes

According to The Sun: Chancellor Rachel Reeves has been warned that her plans to increase taxes on landlords could negatively impact tenants.

She is considering the idea of introducing national insurance on rental income, trying to fill a £50 billion deficit during the autumn budget.

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However, experts in housing policy are categorically opposed to this initiative.

Property programme presenter Kirstie Allsopp remarked: “It is persecution of tenants under the guise of pressuring landlords. It is akin to entrusting the economy to Baldrick.”

Ben Beadle from the National Association of Landlords stated: “This will hit the households that the government wants to protect.”

Earlier this week, The Sun reported that businesses are bracing for a double whammy from Labour taxes amounting to £2.5 billion.

They are facing a double squeeze — first from the increase in inflationary business rate in April, and then through Reeves' surcharge.

Business rates are property taxes that companies must pay for using their shops, pubs, factories, and offices.

Conservatives warn that thousands of struggling businesses may go bankrupt.

Shadow Secretary for Housing James Cleverly stated: “Once again Labour hits the streets. Increasing business rates for thousands of hard-working small businesses across England was one of the first acts of Labour in power.”

The first blow will occur in April when bills automatically rise due to inflation.

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The Bank of England predicts that the rate will reach four percent next month.

Global tax company Ryan reported that this will add £1.11 billion to business rates across England.

The second blow will occur when Chancellor Reeves introduces an additional multiplication on larger premises next year.

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Reeves is considering introducing national insurance on rental income.

These changes have already sparked numerous discussions among experts and business representatives who fear that increased taxes could lead to decreased investments and worsening housing conditions for the population. At the same time, the government is seeking ways to offset the budget deficit, but its decisions could have serious consequences for the economy and the well-being of people.