Four groups of UK households would face higher costs under Andy Burnham's long-advocated plan for council tax reform, according to property experts. Burnham, widely expected to become the next Prime Minister following Sir Keir Starmer's resignation, has proposed replacing stamp duty with a land value tax (LVT), a concept he outlined in The Guardian in 2010.
Burnham's Land Value Tax Proposal
Burnham, who became the MP for Makerfield last week, argues that an LVT would make home buying more accessible for those with less financial backing and be harder to evade. The plan, supported by the campaign group Fairer Share, would replace stamp duty and council tax with a levy equivalent to 0.48% of a property's value.
Tom Bill, head of UK residential research at estate agents Knight Frank, said: "It won't be a top priority but a move to tax the asset rather than the transaction appears to be on Burnham's radar. He supports a proposal by campaign group Fairer Share, which wants to replace stamp duty and council tax with a levy equivalent to 0.48 per cent of a property's value."
Groups Hit Hardest
Bill warned that the policy would not be universally popular, identifying four groups that would pay more: "Under the plan, landlords, developers, overseas buyers and second-home owners would pay more." He added that a similar approach with stamp duty since 2014 has curbed activity in high-value locations where revenue is targeted, and that politicising the housing market has been tried and failed.
Tim Stovold, head of tax at accountancy firm Moore Kingston Smith, told the Financial Times: "A tax of this type will reduce property values when introduced."
Expert Reactions
Bill praised the simplicity of the proposal and the logic of scrapping stamp duty, which hinders social and economic mobility, but questioned its political nature: "Shouldn't the sole aim be to maximise tax revenue?" The plan aims to generate a regular flow of tax receipts, but experts caution it could reduce property values and curb market activity.
