Andy Burnham has admitted he is considering a radical overhaul of council tax and stamp duty, conceding that "big decisions" lie ahead. However, Downing Street has denied reports that the Government is actively considering replacing the two taxes with a levy based on property or land values.
The Prime Minister, speaking to Laura Kuenssberg on the BBC's Panorama programme, said there were people in Greater Manchester paying much higher council tax than those living in larger homes in London. He praised his predecessor, Rachel Reeves, for starting to reform council tax to create fairness for homes of greater value.
Sir James Cleverly, the Shadow Housing Secretary, accused Labour of seeking "more ways to tax Middle England" and raising taxes on people's homes. He said replacing council tax and stamp duty with a new house price tax would not be a tax cut but the reverse, with people across England paying more. The Conservatives would keep tax on the family home down, including by scrapping stamp duty entirely for primary residences.
Number 10 denied reports that Mr Burnham was considering a 0.48% annual charge on a home's current value, or a land value tax. The Fairer Share Campaign had suggested such a flat-rate charge could save households in Hartlepool about £950 a year.
Stamp duty is currently payable on sales from £125,000, although first-time buyers are exempt up to £300,000, with the relief ending at £500,000. Labour is under pressure from its back benches to reform council tax, including from Jonathan Brash, the Labour MP for Hartlepool and chairman of the cross-party group of MPs on council tax reform.
Mr Brash said "wholesale reform" was needed, noting that Band A homes in Hartlepool cost nearly 2.5 times as much as in Westminster. He said: "Council tax is one of the most unfair taxes in Britain, and nowhere is that injustice clearer than in towns like Hartlepool."
