British Chancellor Rachel Reeves is considering introducing a new property tax targeting high-value family homes, including a potential 'mansion tax,' as part of efforts to address a fiscal shortfall exceeding £40 billion ahead of the upcoming autumn budget. This move aims to avoid raising headline tax rates on working people while plugging the Treasury's budget gap. The proposed property tax would disproportionately affect London homeowners. Treasury insiders have indicated that extending the income tax threshold freeze is also a leading option to help close the fiscal black hole. Reeves had previously ruled out reforms such as property revaluation, adding extra tax bands, or increasing rates for more valuable properties. Despite these challenges, there are some hopeful signs for the UK economy as the Chancellor prepares to present the budget.