Andy Burnham is set to punish middle-class homeowners by dragging them into the punitive 'mansion tax' regime, according to reports. The Labour MP for Makerfield plans to lower the threshold for the extra levy to include homes worth £1.5 million, meaning more than 150,000 families would be hit with four-figure tax hikes.
Lowering the Threshold
Sources told this newspaper that Mr Burnham is considering lowering the threshold for Chancellor Rachel Reeves's so-called mansion tax – due to hit in April 2028 – from £2 million to £1.5 million. Currently, the lowest band for the mansion tax covers properties valued between £2 million and £2.5 million, with owners paying £2,500, while the highest charge of £7,500 will fall on homes valued at £5 million or more.
Michael Bruce, CEO of estate agent Purplebricks, said: "An estimated 150,000 additional households could be caught if the threshold falls to £1.5 million. If the Government wants growth, this is the wrong place to start. Housing is one of the UK’s biggest economic drivers, yet the market is already fragile. Policies that discourage people from moving don’t just affect homeowners – they hit buyers, sellers, tradespeople, retailers and the wider economy."
Political Reactions
Conservative Party leader Kemi Badenoch attacked the plans as another example of Labour's 'politics of envy'. She said: "Andy Burnham is making the same mistakes Keir Starmer made, putting up taxes, hitting working families, when we should be cutting spending. Labour can change their leader but the problem will always be the Labour Party and its politics of envy."
Last week Mr Burnham strongly hinted that he was planning to increase taxes, saying that while he would "stick by the manifesto promises" not to hike income tax, VAT and national insurance, there was "some room for movement on tax."
Support for Wealth Tax
General secretary Sharon Graham said: "We must bite the bullet on a wealth tax to ensure our public services are protected... The choice should not be about whether to defend our nation or pay for schools, hospitals or roads. We must put workers and communities first."
The proposed change would significantly expand the scope of the mansion tax, which was originally designed to target the most expensive properties. Critics argue that lowering the threshold to £1.5 million would capture many family homes in London and the South East, where average prices are higher.
