Map shows UK areas that ‘suffer’ with Burnham tax change | Politics | News
A new map has highlighted the areas that would suffer the most if Andy Burnham makes sweeping tax changes. The Member of Parliament for Makerfield is one of the candidates who could replace Sir Keir Starmer as Prime Minister. The former Mayor of Greater Manchester is believed to be making sweeping changes to property tax, according to a newly published map. It is thought that these changes will affect those living in the capital the most.
The Mansion Tax, introduced last year as part of Chancellor Rachel Reeves’ budget, meant extra charges for those living in homes worth £2 million or more. Andy Burnham could lower the threshold to £1.5 million. If such a change were to occur it would impact homeowners in the south of England.
London will face the biggest rate of price rises if Manor Tax reform goes through Tax Policy Partners. Residents in Battersea, Kensington and Bayswater, as well as Hammersmith and Fulham, are likely to be affected. Camden, Barnet and Ealing are also predicted to make major changes.
The South East of England will be second only to London, while Surrey and Hampshire will be the hardest hit areas in this region. Windsor and Newbury are also among the places where the tax will hit homeowners the hardest.
Hertfordshire and Trafford were also on the list of places outside London and the South East of England where the Mansion Tax change could affect homeowners.
The Tax Policy Associates team wrote: “Our estimate: A threshold of £1.5 million would lead to around 150,000 homes being taxed, almost doubling the number of properties covered. “But simply adding a lower band wouldn’t provide much extra money.
“To come close to doubling the return, tax will need to become more aggressive, with £1.5m homes paying the current lowest charge of £2,500 and charges on the current £2m-plus bands all being pushed upwards.
“On this basis, net income could rise to around £800 million a year, so Mr Burnham may find this option attractive. But this has a serious downside: tax systems need stability. Extending a tax before it is even introduced is, in our view, the very opposite of stability.”
