Andy Burnham Backs Property Tax Reform to Replace Stamp Duty

Andy Burnham, the newly elected Labour leader set to become Prime Minister, has expressed support for a Proportional Property Tax (PPT) designed to replace the current council tax and stamp duty systems. The proposal, championed by the Fairer Share campaign, seeks to address inequalities in the existing tax structure.

The PPT would introduce a flat 0.48% tax on a property's current value for homeowners. Second homes, foreign-owned properties, and empty housing would be subject to a higher rate of 0.96%. Although the tax would initially be capped at £1,200 per year, the reform is estimated to disproportionately impact London, where it could add £7.5 billion to the capital's annual property tax bill.

Fairer Share claims the reform would benefit 77% of UK households by removing regressive taxation. However, critics argue the policy could discourage homeowners from up-sizing in high-value areas like the South East and may lead to higher rents if landlords pass the additional costs on to tenants.