Andy Burnham, the Greater Manchester mayor and frontrunner to replace Keir Starmer, has pledged to overhaul the council tax system, which he argues unfairly penalises deprived areas. More than a dozen Labour MPs, mostly from northern seats, wrote to Chancellor Rachel Reeves last autumn urging the tax's abolition, labelling it a 'tax on deprivation'.
Burnham contends that land is under-taxed, fuelling expectations that a reformed system could save some households up to £950. The current system often leaves a modest terrace in the North of England paying more than a London mansion, according to critics.
The proposed overhaul comes amid soaring council tax bills, with many households facing significant increases. Burnham's plan is seen as a key part of his platform as he positions himself for a potential leadership bid.
