Labour would double council tax on second homes to help families living in temporary accommodation, shadow housing secretary John Healey is expected to announce later today.

Speaking at the party conference, Mr Healey will announce a new national levy on second properties used as holiday homes that will be earmarked for helping homeless families.

He will say: ‘It will fall to Labour to put a brake on the growing gap between Britain's housing ‘haves' and ‘have-nots' and ensure that those who have done well out of the housing market do not leave behind those with no home at all.

‘So today I can also announce the next Labour Government will strike a blow against housing inequality with a new national levy on second homes used as holiday homes, to help give homeless families the chance of a first home.'

Polly Neate, CEO at Shelter, said: 'Our housing crisis has reached such depths that tens of thousands of families are being tipped into homelessness and forced to live in temporary accommodation. This scandal must be addressed, so it's good to see this proposal to fund vital homelessness support services.'

Mr Healey will also pledge that Labour would help councils build a million affordable homes, eradicate rough sleeping within a parliament and set up a fully-fledged housing department to fix the housing crisis.

He will say: ‘We will build for those who need it most – the very poorest and most vulnerable – with a big boost to new social rented homes at the heart of the programme.

‘And we will also build for those in work on ordinary incomes who are priced out of the housing market, and being failed by housing policy.

'Labour's living rent homes, with rents set at a third of average local incomes. Labour's low cost homes to buy, with mortgage costs set at a third of average local incomes.'