Andy Burnham considering huge tax change with new ‘0.48% charge’ | Politics | News
The government is reportedly considering replacing council tax and stamp duty with a new 0.48% tax on homes. It comes after former Housing Secretary Steve Reed confirmed Labor was looking at alternatives to council tax and stamp duty.
Andy Burnham officially became the UK’s new Prime Minister on Monday, July 20, 2026, and has made a number of commitments regarding the taxes paid by Brits, including reducing business tax for pubs, clubs and music venues and cutting VAT from electricity bills. Now it looks like the government wants to reform the taxation of property.
Accordingly i PaperThere are two options being considered: a proportionate property tax, which would charge an annual fee of 0.48% on the current value of the property, replacing council tax and stamp duty, or a land value tax, which consists of an annual charge based on the value of the land on which the property stands, rather than the building.
The Prime Minister said he had “long been convinced of the argument” for changing the system. Mr Burnham said he had repeatedly called for changes to the system, describing council tax as “extremely regressive”.
More than 100 MPs have reportedly called for a complete overhaul of the system. The request comes from Labor MPs on Council Tax Reform, the Red Wall group of more than 40 MPs and members of the All Party Parliamentary Group (APPG) on Council Tax Reform.
To Mr. Burnham, No. It is believed that in its early days in 10 a policy document detailing the case for council tax reform was handed down.
Jonathan Brash, MP for Hartlepool and chairman of the APPG, criticized council tax as “one of the most unfair taxes in Britain”, claiming the “injustice” was clear in towns such as Hartlepool, where a similar property in Wandsworth would cost £1,020 a year, while in Hartlepool the cost would be £2,556.
Stamp duty is currently paid by home buyers on purchases over £125,000, with the figure rising to £300,000 for first-time homebuyers.
If reform does indeed occur, it will probably take some time. Lord Blunkett claimed that a land value tax would be “politically problematic”, adding that “radical thinking in economics” was needed before any consideration.
