Andy Burnham teases higher UK taxes in ‘undertaxed’ bombshell | UK | News
Andy Burnham has hinted at higher taxes on landowners and property wealth as he launches his campaign to return to Westminster and position himself as the future Labor leader. Britain’s tax system unfairly favors wealth tied to land and property, the mayor of Greater Manchester has claimed, arguing there is a strong case for major reform if he enters government.
Speaking at the launch of her campaign ahead of the upcoming Makerfield by-election, Burnham said land in the UK was “undertaxed” and pointed to council tax and business rates as areas she believes need an overhaul.
The comments are likely to trigger fears of new tax rises as Burnham seeks to forge a more radical platform within Labor by adhering to the party’s existing fiscal rules.
Burnham insisted Labor would not increase headline rates of income tax, VAT or National Insurance, saying Labor must maintain confidence with voters and financial markets.
But he has indicated he is willing to consider broader changes to the taxation of wealth and property, including possible reforms to capital gains tax and council tax.
He also reiterated his long-standing support for abolishing inheritance tax and replacing it with a special tax to help fund social care.
“I see a big case for changing the land, business and property tax,” Burnham said.
The former Labor leadership candidate has argued for years that Britain should shift more of the tax burden from workers’ wages to wealth, land and assets.
During the Labor leadership campaign in 2010, Burnham supported the idea of a land value tax, claiming it could eventually replace stamp duty and make it easier for young people to get on the property ladder.
His latest remarks come as economists warn that Britain’s property tax system is already one of the burdensome in the developed world.
The UK generates a larger share of its economy through property-related taxes than most developed countries, due to a combination of council tax, business rates and stamp duty, according to OECD figures.
Critics have long argued that council tax is based on outdated property valuations and, in some areas, unfairly impacts lower-income households more.
Business rates are also facing increasing criticism for putting pressure on high street shops and hospitality firms, while online retailers operating from warehouses generally face lower relative costs.
Labor has promised in its 2024 manifesto to change the current business rates system, arguing it discourages investment and harms city centres.
Burnham also backed introducing a visitor tax on hotels, which he said could help reduce pressure on businesses in the hospitality sector.
He also signaled support for stronger public control over utilities, including water companies, but did not explicitly call for nationalization.
