Ministers are considering plans to replace council tax and stamp duty with a property levy.
The government are said to be looking into the impact of removing both forms of taxes.
The replacement property levy would likely be based on the current value of a home.
Industry says the mortgage market is in for more ‘twists and turns’
Furthermore, Chancellor Rishi Sunak is reportedly considering increasing taxes within the budget, set to take place on 3 March.
As a result of COVID-19, the UK’s national debt has risen to over £2tn, its highest level since 1962.
The Office for Budget Responsibility predicts borrowing could extend beyond £393bn by the end of the financial year, which would be the greatest amount since the Second World War.
In addition, figures show that the UK is on track for another recession as GDP has fallen by 2.6% from the second lockdown in November.
As a result, a corporation tax hike is seen as an appropriate first step in starting to pay for the current crisis.
It is expected that Sunak could increase taxes for corporations if the UK’s coronavirus vaccination programme continues successfully.
A senior Whitehall source told The Sunday Times that “things would have to go pretty badly wrong for us not to begin some consolidation in the Budget”.