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Burnham Government Weighs Replacing Council Tax and Stamp Duty

Officials are studying two rival models — a proportional 0.48% annual property charge; a land value tax — to tackle regional unfairness ahead of autumn Budget choices.

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Caption: WIGAN, ENGLAND - MAY 20: Andy Burnham, Mayor of Greater Manchester goes door to door Canvassing on May 20, 2026 in Wigan, England. The Makerfield by-election will take place on Thursday 18 June 2026 after Labour MP Josh Simons resigned to make way for Greater Manchester Mayor Andy Burnham to run giving him a route back to Westminster. While Labour won this seat at the 2024 general election with 45.2% of the vote to Reform UK's 31.8%, recent local council elections in May 2026 saw a shift, with Reform UK winning 49.8% of the area's vote compared to Labour's 24.3%. (Photo by Ryan Jenkinson/Getty Images) Photographer: Ryan Jenkinson Provider: Getty Images Source: Getty Images Europe Copyright: 2026 Getty Images
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Overview

  • Senior officials have quietly opened formal work on replacing council tax and stamp duty, a move confirmed by former housing secretary Steve Reed and reported across outlets.
  • One option under review would replace both taxes with a flat 0.48% annual charge on current home values, which campaigners say would leave most households better off in some regions.
  • The alternative is a land value tax that charges the value of land rather than buildings, a model Prime Minister Andy Burnham has supported for years but has not set a rate for.
  • More than 100 Labour MPs and a Fairer Share petition with over 100,000 signatures are pressing for wholesale reform, while senior figures such as Lord Blunkett warn LVT could create clear winners and losers and be politically risky.
  • No final decision has been taken, Downing Street has sought to play down reports of an imminent switch, and ministers are expected to frame any change during fiscal decisions around the autumn Budget.