UK households face bills ‘almost three times higher’ if Andy Burnham becomes PM.VA
Some homeowners could face annual bills of £1,650 while others would be expected to pay just £600
Andy Burnham is a fan of a land value tax (Image: Getty)
Homeowners in the south would reportedly be billed almost three times higher than those in the north under potential council tax reforms supported by Andy Burnham, according to analysis. The Labour MP for Makerfield, who is widely expected to be the next prime minister, has long backed a land value tax (LVT).
This is a yearly levy on the value of private land that the former Mayor of Greater Manchester has previously hailed as “very productive” and likely to force landowners to make use of land rather than just hoard it. The idea has been supported by some who call for council tax to be scrapped and replaced with a 1% levy on the value of land. Mr Burnham has said he wants to see council tax reformed while campaigning in the Makerfield by-election. But reasearch shows LVT would hit some homeowners much more than others.
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According to The Telegraph, average council tax bills are currently higher in the north than south and a 1% levy would reverse this.
Analysis by the same publication suggested that adoption of LVT would result in southerners paying an annual average of £1,650 while northerners would see bills of £600.
Alternative analysis by the campaign group, Fairer Share, which campaigns for reforms to stamp duty and council tax, showed a standard Band D property in Mr Burnham’s constituency this year faces a council tax bill of £2,152.
This compares to a Band D property in Westminster, central London, where occupiers pay an average £1,048.
A land tax would likely see those living in larger homes with bigger gardens paying more compared with less well off people in smaller properties.
Shadow Secretary of State for Housing, Communities and Local Government, Sir James Cleverly, said the “garden tax” is straight out of former Labour leader Jeremy Corbyn’s playbook.
He said LVT is a tax on aspiration which would punish families who have worked and saved hard to invest in their homes.
Patrick Hurley, the Labour MP for Southport, told Fairer Share that his constituents know the current council tax system is unfair.
He said: “Families here work hard and shouldn’t be asked to shoulder a bigger burden than wealthier parts of the country.”
Mr Burnham has not addressed precisely how or whether he would reform property taxes, such as council tax, which is based on property valuations from the 1990s.
The tax has not seen major reform for decades under both Labour and Conservative administrations.
