Prime Minister Andy Burnham is reportedly considering a radical reform of property taxes, replacing council tax and stamp duty with a single annual charge of 0.48% on a home's current value, according to reports. This would mean the average UK home, valued at £270,000, would incur an annual tax of £1,296.
Current tax burden versus proposed reform
The average Band D council tax bill in England is currently £2,392 per year, so the new tax would represent a significant saving for many households. Additionally, stamp duty, paid on property purchases over £125,000, would be scrapped under the reported proposals.
Burnham's comments on fairness
Speaking on the BBC’s Panorama programme, Mr Burnham said: “There are people here in Greater Manchester who pay a much higher council tax than people living in much larger homes in London.” 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?”
The Prime Minister acknowledged the need to stick to the 2024 election manifesto but understood how people felt the current system was disproportionate.
Denials and backbench pressure
Number 10 denied reports that the government was actively considering replacing council tax and stamp duty with a 0.48% annual charge, but Mr Burnham has made repeated references to reforming property taxes. The Fairer Share Campaign said the flat-rate charge could save households in areas like Hartlepool about £950 a year.
Labour MP Jonathan Brash (Hartlepool) told the i Paper “wholesale reform” was needed, pointing out that band A homes in Hartlepool pay nearly 2.5 times more than 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.”
