Prime Minister Andy Burnham has firmly ruled out imposing a £1,296 annual charge on homes worth £270,000, dismissing speculation that his government was planning to scrap council tax and stamp duty in favour of a land value tax.
Reports of a Land Tax Denied
The i newspaper reported that Mr Burnham was considering replacing council tax and stamp duty with a 0.48 per cent annual charge on a home's current value. Based on the average UK property value of £270,000, this would mean a £1,296 yearly tax. However, the Prime Minister stated unequivocally in a BBC interview: 'That won't be happening,' referring to the next Budget. His spokesman had earlier confirmed the plans were not under active consideration.
Northern MPs Campaign for Reform
About 15 northern Labour MPs have launched a campaign to scrap council tax entirely. Jonathan Brash, Labour MP for Hartlepool, described council tax as 'one of the most regressive taxes in Britain. It hits hardest constituencies like mine, where people pay more despite often having less.' Jonathan Hinder, Labour MP for Pendle and Clitheroe, argued that scrapping council tax would 'put pounds in people's pockets without costing the Treasury a penny.'
Burnham's Stance on Fairness
In the same interview, Mr Burnham acknowledged regional disparities, noting that 'there are people here in Greater Manchester who pay a much higher council tax than people living in much larger homes in London.' He praised former chancellor Rachel Reeves for starting to reform council tax 'to create some fairness.' However, he drew a clear line, denying any imminent replacement of the system.
Policy Blitz in Early Premiership
Mr Burnham has begun his premiership with a flurry of policy announcements, including reducing £3 bus fares to £2 and cancelling VAT on electricity bills. His first major interview, aired on BBC Panorama on Monday, covered a range of issues, but property tax reform was not among them. The Prime Minister's swift denial underscores his focus on delivering tangible benefits without major tax upheaval.
