Prime Minister Andy Burnham has signalled that major changes to council tax and stamp duty could be on the horizon, acknowledging there are “big decisions” to be made. The admission came after a week in office, amid reports that a new system is being drawn up.
Burnham on fairness
Speaking to Laura Kuenssberg on the BBC’s Panorama programme, Mr Burnham highlighted regional disparities. “There are people here in Greater Manchester who pay a much higher council tax than people living in much larger homes in London,” he said.
He praised his predecessor, Rachel Reeves, for beginning to reform council tax to create fairness for people in homes of much greater value who had not seen their bills rise due to a failure to revalue bands. He added: “That’s an example of something that I think was right and fair.”
Manifesto and denials
When asked about potential changes, Burnham said: “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.”
However, Downing Street denied reports from the i Paper that the government was 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.
Campaign figures and MP pressure
According to the Fairer Share Campaign, the flat-rate annual charge could save households in areas such as Hartlepool about £950 a year. Stamp duty is payable on sales from £125,000, although first-time buyers are exempt on purchases up to £300,000. The relief ends at prices over £500,000.
Labour MP Jonathan Brash (Hartlepool), chairman of the cross-party group on council tax reform, called for “wholesale reform”. He noted that Band A homes in Hartlepool cost nearly 2.5 times as much as 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.
