UPDATE 1 — Britain's Labour government considers lowering mansion tax threshold to £1.5 million, The Times reports

(Adds details from the report, Treasury statement, background from paragraph 2) Sept 18 (Reuters) — Britain's Labour government is considering extending its mansion tax to properties worth more than £1.5 million ($2.01 million) from a current threshold of £2 million, the Times reported on Friday, citing two government sources. The proposed change would more than double the number of homes subject to the levy to about 271,000 based on current property values, the report said, adding that lowering the threshold remains a "live discussion" within the Treasury. “As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals,” a Treasury spokesperson said. The report comes as Britain's finance minister John Healey faces pressure to raise billions of pounds in tax revenue in his first budget to offset higher borrowing costs and fund Prime Minister Andy Burnham's plans for expanded social care and more defence spending. Britain last year announced a new high-value council tax surcharge in England starting in 2028, with an annual charge of £2,500 for properties valued at more th