Labour MP Andy Burnham and his team have backed a controversial proposal to replace council tax with a land value tax, which could result in annual bills of nearly £3,000 for some households. The plan, which would levy a 1 per cent charge on the value of private land, aims to reverse the current disparity between northern and southern homeowners.
How the Land Value Tax Would Work
Under the proposed system, homeowners in the south of England would face bills almost three times higher than those in the north. An analysis by The Telegraph found that southern households would pay an average of £1,650 a year, while northern households would pay just £600. In London, average bills would rise by 36 per cent from £1,596 under council tax to £2,172 under the land tax, excluding the Mayor of London’s precept.
The steepest increase would be in Wandsworth, where bills would soar by 472 per cent from £517 to £2,958. Outside London, Windsor and Maidenhead would see a near-50 per cent rise, and St Albans would face a 25 per cent hike. In contrast, northern households would experience an 87 per cent drop in their bills.
Political Reaction and Criticism
Sir James Cleverly, the Conservative shadow secretary of state for housing, communities and local government, strongly criticised the proposal. He said: “Andy Burnham’s garden tax is straight out of the Corbyn playbook. It is a tax on aspiration that would punish families who have worked hard, saved hard and invested in their homes.” He added: “By taxing the land beneath people’s homes, it would hit families with gardens the hardest, pile new costs onto homeowners and create pressure to carve up land for development.”
Impact on Homeowners
The land value tax would effectively reverse the current council tax system, which tends to place a higher burden on northern households relative to property values. Under the new plan, southern homeowners, particularly those in high-value areas like London and the South East, would face significant increases. The proposal has sparked debate about fairness and the potential impact on property markets and household finances.
