Rishi Sunak, the Chancellor, is under pressure to slash taxes to promote the Government’s “levelling up” agenda and prolong the stamp duty holiday to help homebuyers who risk an extra tax bill in April. Council tax should be a key target for reform, according to the think tank Onward in research for the Levelling Up Taskforce, which counts 65 “red wall” MPs among its backers. At the same time Rightmove, the estate agency website, warned 100,000 agreed home sales could risk being derailed by the end of the stamp duty holiday at the start of April. Ministers have pledged an infrastructure spending boom to tackle regional inequalities but Onward director Will Tanner warned “ministers are trying to overturn decades of regional economic divergence with one hand tied behind their back” by overlooking tax policy. Its report found Londoners pay an average £481 per head in council tax, the lowest in England despite much higher property prices, and 20pc less than households in poorer areas such as the South West and East of England. Cutting the lowest band of council tax would also benefit more than half of households in the North East compared to just 4pc in London due to the regressive nature of the tax, Onward added. But raising the rate for the top three bands would hit 15pc of all households in London and the South East, it added.