Andy Burnham, the Labour MP for Makerfield and widely anticipated next Prime Minister following Sir Keir Starmer's resignation on Monday, has backed plans that could see homeowners with properties valued at £300,000 face an annual charge of £1,440.
Council Tax Reform Proposal
Sky News reports that Mr Burnham, the former Mayor of Greater Manchester, has long been an advocate of council tax reform. During his recent campaign, the 56-year-old called the current system "highly regressive" and said its 1991-based property valuations were "not justifiable." Mr Burnham is confirmed to be a supporter of a proposal put forward by the campaign group Fairer Share.
Fairer Share wants to replace council tax and stamp duty with an annual property tax equivalent to 0.48% of a home's value. If implemented, this would mean a property tax of £1,440 payable on a house valued at £300,000, according to Sky estimates.
Financial Experts Weigh In
Martin Rayner, a financial adviser at Compton Financial Services, told Sky News Money: "The council tax debate is particularly worrying. Council tax was designed to fund local services, with bands based on relative property values within a local area. It was never intended to mean that two homes worth the same amount in different parts of the country should automatically pay the same tax."
Tracey Dixon, a buy-to-let mortgage specialist, commented: "Any changes to stamp duty, council tax or landlord taxation would also be watched closely by homeowners and property investors. With many households still adjusting to higher mortgage costs, what borrowers need most is stability, predictability and policies that support long-term housing affordability."
Political Context
The news comes as Donald Trump has labelled Mr Burnham "extremely liberal" in his first public comments about the former Greater Manchester mayor since he emerged as the frontrunner to replace Sir Keir. In US politics, the term "liberal" is used pejoratively by right-wingers to mean left-wing.
