Burnham's tax plans threaten biggest property shake-up in years

Andy Burnham, the newly sworn-in MP for Makerfield and frontrunner to succeed Keir Starmer as prime minister, has set out an economic agenda that goes far beyond the constitutional reform suggested by headlines, according to tax experts examining the proposals.

In his speech at the People's History Museum in Manchester on Monday, Burnham outlined plans for what he has called the "biggest rebalancing of power our country has seen," with implications stretching into how wealth is taxed and how property is valued across England.

Sean Bannister, head of tax at law firm Edwin Coe LLP, told Mortgage Introducer the direction of travel under a Burnham premiership was already becoming clear. "Whilst the headlines have centred on moving political power out of Westminster, the proposals go much further than devolution. Andy Burnham in power would likely lead to a fundamental reshaping of how the UK economy is managed in a more interventionist manner, and that means some pretty significant implications in how investment is encouraged and how wealth is taxed."

What would greater fiscal devolution mean for businesses?

Burnham's agenda centres on a new "No. 10 North" operation based in Manchester, intended to redistribute power and resources away from Whitehall. Bannister cautioned the practical tax consequences of devolving fiscal powers to English regions could create new complexities for businesses operating nationally.

"It's about much more than the location of government departments. Greater fiscal powers for regions could mean different approaches to taxation, investment incentives and economic policy across England. That clearly creates opportunities for regions to compete and innovate, but at the same time risks adding complexity for businesses operating nationally if the framework is not carefully designed."

Could stamp duty be replaced with a land value tax?

For mortgage brokers and advisers, the most consequential element is the suggestion individual wealth taxation is also under review. A land value tax (LVT) is an annual charge based on the assessed value of land or property, rather than a one-off cost paid on completion as with stamp duty. Bannister pointed to early signals Burnham is considering exactly this kind of overhaul of property and wealth taxes.

"When it comes to individuals Burnham appears to be leaning towards taxing wealth more heavily including aligning capital gains tax more closely with income tax, replacing council tax and stamp duty with a proportional property or land value tax, and potentially reforming inheritance tax. Whilst these ideas remain at an early stage, they do signal a willingness to revisit parts of the tax system that have remained largely unchanged for years, although we will definitely see some pushback from certain parts of the population."

One model under discussion is the Fairer Share campaign's proposal for a proportional property tax, which would apply an annual charge of 0.48% on a property's assessed value in place of stamp duty and council tax. Nicholas Smith, head of tax at Duncan and Toplis, told The Independent the proposal carried real practical hurdles. "Regular, accurate property valuations across the entire UK are difficult to assess," he said, adding that the regional impact would likely be skewed, with higher-value areas in the South East facing significantly larger bills than under the current council tax system.

What should brokers tell clients now?

Despite the scale of the proposals, practitioners are urging caution against overreacting to plans that remain at an early stage. Joseph Lane, founder of Mortgage Lane, told The Independent Burnham's proposals were considerations rather than firm policy that clients should plan around in the near term. He noted a sustained focus on housebuilding would do more to improve affordability than tax reform alone, and that any move to reduce or scrap stamp duty would lower upfront buying costs over time.

For brokers, that means continuing to advise on the basis of current rules, while flagging that the long-term tax landscape for property could look markedly different within a single parliamentary term. Clients weighing a purchase in the next 12 to 18 months should not expect any of these changes to affect their transaction.

A programme, not a single policy announcement

Bannister was clear the speech should not be read as a one-off constitutional gesture, but as the first articulation of a far wider economic programme that will take shape over the coming months. That broader programme also includes a major council housebuilding drive and business rates reform aimed at addressing England's stagnant housing market.

"The speech should be seen as part of a much broader economic programme rather than simply a constitutional reform designed to grab the media's attention," Bannister said. "The key questions over the coming months will be how these proposals are funded, how regional powers interact with national tax policy, and whether the government can deliver greater local autonomy without creating additional complexity for businesses and taxpayers."

Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.