New Prime Minister Andy Burnham has hinted at council tax changes, stating that residents in Greater Manchester pay "much higher" charges than some in London, as he acknowledged "big decisions" ahead for his Government. Speaking to Laura Kuenssberg on the BBC's Panorama programme, Burnham said: "There are people here in Greater Manchester who pay a much higher council tax than people living in much larger homes in London."
Burnham acknowledges disproportionate system
Burnham said he understood how people felt the current council tax system was disproportionate, but stressed the need to stick to the manifesto Labour was elected on in 2024. He added: "So the Chancellor before, Rachel Reeves, was right to start to reform council tax to create some fairness there in relation to people in homes that are of much greater value, who haven't seen their council tax go up over the years because of the failure to revalue the banding. So that's an example of something that I think was right and fair."
Number 10 denies replacement tax plans
On Sunday night, Number 10 denied reports by the i Paper that Burnham was actively considering replacing council tax and stamp duty with a 0.48 per cent annual charge on a home's current value, or a land value tax. According to the Fairer Share Campaign, the flat-rate annual charge could save households in areas such as Hartlepool about £950 a year. Stamp duty is currently paid on sales from £125,000 upwards, although first-time buyers benefit from not having to pay any on purchases up to £300,000. However, the relief ends at prices over £500,000.
Backbench pressure for reform
Labour has come under pressure from its backbenches to reform council tax, including from chairman of the cross-party group of MPs on council tax reform, Jonathan Brash (Hartlepool). Burnham previously said he has been "persuaded" of the argument for reforming the system. He retorted: "We need to honour the manifesto upon which Labour was elected, and if I was to bring forward any changes, obviously people would rightly say, well, is this consistent with that manifesto? So there are big decisions ahead, you are right about that."
