Andy Burnham's spokesperson has firmly ruled out two rumoured changes to council tax and stamp duty, quashing speculation that the Prime Minister is actively considering scrapping either tax. The denial came during Monday's lobby briefing, after reports in the I newspaper suggested that the new Labour Party leader was examining options to abolish both taxes.
Spokesperson Dismisses Reports
Speaking to journalists, the PM's spokesperson stated: "Suggestions that scrapping council tax or stamp duty are under 'active consideration' by the prime minister are not true. As has always been the case, decisions on tax are a matter for the chancellor to set out at fiscal events." When pressed repeatedly, the spokesperson insisted the story was "not true" and described the response as unambiguous.
Context of Burnham's Previous Comments
The clarification follows a BBC Panorama interview with Andy Burnham, scheduled to air on Monday evening. In the interview, Burnham praised former Chancellor Rachel Reeves for making council tax fairer, noting that the current system penalises some regions unfairly. He said: "There are people here in Greater Manchester who pay a much higher council tax than people living in much larger homes in London. So the chancellor before, Rachel Reeves, was right to start to reform council tax to create some fairness there."
Burnham's comments highlight a long-standing issue: council tax bands, based on 1991 property values, have not been updated, leading to disparities. Higher-value homes in London often pay proportionally less than modest homes in other areas.
Cabinet Changes and Fiscal Outlook
Reeves was replaced as Chancellor by John Healey in Burnham's recent Cabinet reshuffle. When asked if the PM still supports a land value tax—an idea he has backed previously—the spokesperson declined to comment further, repeating that such decisions are reserved for fiscal events. The first Autumn Budget under Healey and Burnham is expected in late November, according to reports.
Burnham has acknowledged that "big decisions" on council tax lie ahead for his government, criticising the unfairness of a system where some households pay higher rates than those in more expensive homes in London. The current banding system, unchanged for over three decades, has been criticised for exacerbating regional inequalities.
Impact and Reactions
The swift denial from Downing Street suggests that the new administration is keen to avoid speculation about major tax reforms before the Budget. While the I paper's report has been firmly rebutted, the episode underscores the sensitivity of tax policy as the government prepares for its first fiscal statement. Analysts expect the Budget to address cost-of-living pressures, but the spokesperson's remarks indicate that radical changes to council tax or stamp duty are not currently on the table.
The clarification also serves to reassure homeowners and property markets, as stamp duty is a significant transaction cost. Any rumours of its abolition could have unsettled buyers and sellers. Similarly, uncertainty over council tax reforms would affect local government funding and household bills. By ruling out these options, Burnham's team aims to provide clarity, though the government's long-term tax strategy remains under wraps.
