The European Commission has called on the UK to raise taxes on higher value properties, build more houses and adjust the Help to Buy scheme.
The commission said council tax bands should be revalued, which would put up bills for some people.
The BBC News Channel's chief political correspondent Norman Smith said David Cameron and George Osborne were likely to be "quietly fuming" at the wide-ranging critique of government policies at a time ministers were presenting the economic recovery as a success story.
Aside from the idea that the UK must build more houses, which the government accepts, the rest of the advice was likely "to end up in the bin", he added.
Norman Smith said many Tory backbenchers were already "spoiling for a fight" over Europe and this was likely to make matters worse at a time when the UK was involved in a stand-off over who should lead the Commission.
Douglas Carswell, the MP for Clacton, told The Times that an unelected group of officials could not tell the UK how to spend its money while colleague Dominic Raab said the chancellor should treat the Commission's advice as "spam when it arrives in his inbox".