Andy Burnham has sparked fresh talk that he could bring in a new property tax which could hammer London.
The new Prime Minister described reforms to council tax by former Chancellor Rachel Reeves as a “start”.
Asked about tax on the wealthy, the PM told the BBC’s Panorama ‘Andy Burnham: the Laura Kuenssberg Interview’: “There are people here in Greater Manchester who pay a much higher council tax than people living in much larger homes in London.”
Speaking at his new No10 North headquarters in Manchester, 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.”
Andy Burnham speaking to the BBC’s Laura Kuenssberg at No10 North in Manchester
PA Media
Former Greater Manchester Mayor Mr Burnham has previously supported a proportional property tax (PPT) advocated by the Fairer Share campaign which would replace council tax and stamp duty.
It would be charged at 0.48% of the value of a property, rising to 0.96% for empty homes, second homes and those owned by foreign nationals.
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Shadow housing secretary Sir James Cleverly said: “Andy Burnham and Labour are just looking for more ways to tax Middle England, and raise taxes on people’s homes.”
London experts argue that the property tax system needs reforming.
Downing Street denied that the PPT was being “actively considered” by the new Government.
A No10 source said: “Suggestions that scrapping council tax or stamp duty is under active consideration by this Prime Minister are not true.”
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Property prices have been falling in London
AFP/Getty
Mr Burnham has vowed to stick to Labour’s election manifesto pledge not to raise the rate of income tax, VAT or National Insurance for employees.
“So, you know, there are big decisions ahead,” he said.
“I need to be very prudent when it comes to the public finances.”
He explained further: “I will stick to the fiscal rules.
“People try and create a sense that I won’t take that cautious approach, I will take that cautious approach.”
He is expected to channel billions more pounds in public spending to boost England’s regions.
However, he is yet to say how he will fund his landmark reforms.
