The Prime Minister has said proposals to replace council tax and stamp duty with a levy based on property or land values ‘won’t be happening’ following speculation about a drastic shake-up
Andy Burnham has categorically ruled out scrapping stamp duty in his first Budget.
The PM issued a flat-out denial to reports he was considering replacing council tax and stamp duty with a tax based on property or land values. Experts had warned the speculation could cause a freeze in the housing market.
Asked if he could provide a reassurance to people looking to buy right now that no such move is being considered, Mr Burnham told broadcasters: “Yes, I can say that quite clearly. That won’t be happening.”
He questioned where the speculation had come from, adding: “It seems that somebody within, I don’t know, 100 yards of me could say something, and then all of a sudden, it’s my policy. Or someone can pass me something, and then I support everything within the document.
“It’s just not the case that we are bringing forward plans on that scale at this moment in time. So I’m quite happy to give you that clarification.
“Obviously, what we’re trying to do, though, is to make taxation fairer. I removed VAT off electricity bills. I said we would do that, and that will come through later in the year.
“We are looking at how we take that little bit of pressure off people’s shoulders, reduce the cost of living. These are priorities. And we obviously will keep working towards them.”
The Prime Minister has previously been linked with a new proportional property tax (PPT) that would replace council tax and stamp duty.
Proposals by campaign group Fairer Share would see homeowners pay a tax of 0.48% of a home’s value. Although he stopped short of saying he would abolish stamp duty, Mr Burnham has indicated he is looking at ways of making the council tax system fairer.
Speaking to Laura Kuenssberg on the BBC’s Panorama programme, Mr Burnham said: “There are people here in Greater Manchester who pay a much higher council tax than people living in much larger homes in London.
“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.
“So that’s an example of something that I think was right and fair.” He went on to say: “We need to honour the manifesto upon which Labour was elected, and if I was to bring forward any changes, obviously people would rightly say, well, is this consistent with that manifesto?
“So there are big decisions ahead, you are right about that.” Last week Mr Burnham announced VAT on electricity bills will be removed in one of his first acts as Prime Minister.
The new PM, who promised breathing space on the cost of living in his first speech from Downing Street, said the move is expected to knock £45 off the average bill.
