Burnham Eyes Council Tax Overhaul: 0.48% Property Tax Replaces Stamp Duty

Prime Minister Andy Burnham is actively pursuing property tax reform, with Treasury officials examining options to replace council tax and stamp duty. Burnham has long criticized the current system as unfair, noting that households in Greater Manchester pay higher council tax than owners of much larger homes in London. A proposed alternative would scrap both taxes and replace them with a flat 0.48% annual tax on property value.

What Burnham’s property tax plan would look like

Burnham supports proposals from Fairer Share, a campaigning organization with cross-party backing. The plan would replace stamp duty and council tax with a flat 0.48% annual tax on current property value. Homeowners would benefit from an initial cap, meaning the new tax would not exceed £1,200 per year. Only homeowners would pay the tax, not renters, which Fairer Share says would benefit 8.7 million tenants across the country.

Why the current system is unfair, according to Burnham

Burnham has repeatedly called council tax “highly regressive.” He told Parliament that households in Greater Manchester disproportionately pay much higher council tax than people living in much larger homes in London. Treasury officials have been examining reform options, as Burnham faces “big decisions” about the system. The Prime Minister said there is “a big case for land and property and business taxation to be changed.”

The 1909 precedent: why land value tax failed before

Lloyd George attempted a land value tax in 1909, imposing a 20% levy on property value increases and an annual charge of roughly 0.4% of land value. The scheme required a new government department to value every acre of land in England, Scotland, and Ireland. Landowners fought the law “tooth and nail” through the courts, and the valuation exercise proved “horribly difficult” and legally vulnerable to challenge. The political fallout was severe: the budget was blocked by the Lords and triggered two general elections in 1910.

What happens next

Burnham has not yet announced a specific timeline for reform. On July 27, he stated that he would not get rid of stamp duty in the upcoming budget, suggesting major changes may take longer to implement. The government is still in the examination phase, with officials studying various options before any formal proposals reach Parliament.

Final Thoughts

Burnham’s push for property tax reform reflects a long-held conviction that the current system unfairly penalizes northern homeowners. The 0.48% flat rate proposal would simplify taxation but faces the same administrative and political hurdles that derailed Lloyd George’s 1909 attempt. Expect a lengthy consultation period before any bill reaches Parliament.

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