Prime Minister Andy Burnham has warned that "big decisions" lie ahead regarding council tax reform, criticising the current system for placing a heavier financial burden on northern residents than on owners of multi-million-pound London mansions.
Speaking to Laura Kuenssberg on the BBC's Panorama programme on Sunday evening, Burnham highlighted the growing disparity caused by decades without property revaluations. He acknowledged the need to stick to the manifesto Labour was elected on in 2024, but said he understood why some people feel the current system is disproportionate.
Northerners pay more than London mansion owners
"There are people here in Greater Manchester who pay a much higher council tax than people living in much larger homes in London," Burnham said. "So the Chancellor before, Rachel Reeves, was right to start to reform council tax to create some fairness there in relation to people in homes that are of much greater value, who haven't seen their council tax go up over the years because of the failure to revalue the banding."
He added: "We need to honour the manifesto upon which Labour was elected, and if I was to bring forward any changes, obviously people would rightly say, well, is this consistent with that manifesto? So there are big decisions ahead, you are right about that."
Denials and proposals
Number 10 denied reports by The i Paper claiming the Prime Minister is "actively considering" replacing council tax and stamp duty with a 0.48% annual charge on a home's current value, or a land value tax. According to the Fairer Share Campaign, the flat-rate annual charge could save households in areas such as Hartlepool about £950 a year.
Labour has come under pressure from its backbenches to reform council tax, including from chairman of the cross-party group of MPs on council tax reform, Jonathan Brash. The Labour MP for Hartlepool told the i Paper "wholesale reform" was needed. He has previously pointed to band A homes in Hartlepool paying nearly 2.5 times more than in Westminster.
"Council tax is one of the most unfair taxes in Britain, and nowhere is that injustice clearer than in towns like Hartlepool," he said.
Burnham has previously said he has been "persuaded" of the argument for reforming the system.
