Andy Burnham, the Greater Manchester mayor, has outlined plans to overhaul council tax, which he claims could save 80% of households up to £950 a year. The proposal, which Burnham argues would replace a system he calls “a tax on deprivation,” is expected to form a central plank of his anticipated leadership challenge against Sir Keir Starmer.
Speaking after his landslide by-election victory in Makerfield, where he defeated Reform UK by more than 9,000 votes, Burnham said: “Everyone knows that politics isn’t working. Tonight could – just could – be a turning point.” The result has fuelled speculation that he will stand for the Labour leadership, with many MPs believing the moment has come to scrap the current council tax system.
Burnham has long argued that land is under-taxed, and his proposals would address anomalies where a terrace house in the North of England can attract a higher council tax bill than a London mansion. Under the reforms, properties would be revalued and bands adjusted, with the aim of cutting bills for the majority of households while increasing them for the wealthiest.
The mayor’s team estimates that around 80% of households would see a reduction, with average savings of £950. The changes would be funded by higher taxes on high-value properties, which Burnham says are currently under-taxed relative to their worth. Critics have warned that the plan could face legal and practical hurdles, but supporters argue it would make the system fairer.
Burnham’s victory speech also touched on broader themes of inequality and opportunity, as he pledged to “build a fairer country.” The by-election result has given him a platform to push his agenda, and he is expected to set out detailed policy proposals in the coming weeks.
