Cabinet split over plan to raise council tax on big homes The Sunday Telegraph understands this group includes Chris Grayling, the Justice Secretary, Grant Shapps, the Conservative Chairman, Eric Pickles, the Communities Secretary, and Philip Hammond, the Defence Secretary. They are urging David Cameron to pull the plug on the plans, as he did earlier this year. In the spring, Mr Osborne was preparing to unveil plans for new council tax bands after agreeing a pact with Mr Clegg, only for the Prime Minister to veto them at the last minute before the Budget. Cabinet ministers fear Mr Cameron will be less inclined to scupper the plans again because of the political hammering he and Mr Osborne have taken after moving to cut the top rate of income tax from 50p to 45p. "There is a strong belief it is a goer this time round," a senior minister told The Sunday Telegraph. Mr Osborne could announce the plans in his Autumn Statement in December. New council tax bands would be contentious, requiring new valuations. At the moment, the highest council tax band is H - for English properties valued at more than £320,000 in 1991. Mr Osborne is understood to be ready to add two extra bands in England - I and J, that would affect homes worth £1 million or more. There are 841,000 homes in England in Bands G and H, according to government estimates, most of which would need to be revalued. Many of these are in London and south-east England. An alternative to extra council tax bands would see a straight mansion tax imposed - with a sliding scale - on properties worth more than £2million. Home owners would be charged one per cent of the property's value above the £2million threshold - on top of the council tax. A Tory source said: "George has been stung by Labour calling the 45p top rate of income tax a tax cut for millionaires. He can see the advantage in doing something that looks as though it is redressing the balance.