Key facts
- Downing Street has denied reports that Andy Burnham is considering abolishing stamp duty and council tax.
- Rumours suggested property-based or land-value levies could replace current property taxes.
- Property sector leaders warned that speculation could lead to a freeze in market transactions.
- Andy Burnham has previously expressed support for property tax reforms.
- A Downing Street spokesperson stated that tax decisions would be announced at the Budget.
Downing Street has denied rumours that Andy Burnham is considering abolishing stamp duty and council tax, labelling the suggestions as "pure speculation" in an effort to prevent market distortion ahead of the budget.
The speculation, which suggested Burnham was "actively considering" replacing current property taxes with property-based or land-value levies, had alarmed property sector leaders. Business chiefs condemned the government over the danger of such speculation, warning it could lead to a freeze in property transactions. Executives noted that similar leaks ahead of last year's budget had fuelled market panic.
Simon French, chief economist at Panmure Liberum, stated that such speculation, while potentially intended to "roll the pitch" for change, was likely to cause a freeze in transactions as parties await clarity on incidence and transitional protections. Simon Gerrard, chair of Martyn Gerrard Estate Agents, criticized the situation, suggesting it echoed "the same old mistakes" of previous short-lived leaders and disrupted anticipated political stability.
Last autumn, London house prices saw their fastest decline since the global financial crisis following speculation about stamp duty reforms and potential capital gains tax changes on primary homes. Experts warned that such damage could cap industry growth for the year.
Andy Burnham has a history of supporting property tax reforms, having previously dubbed land-value taxation as "aspirational socialism." However, Lord Blunkett, an ally of Burnham, noted that any move to replace stamp duty and council tax would be complex, take years to implement, and carry significant political risks. Jonathan Stinton, head of mortgage relations at Coventry Building Society, advised that prospective buyers should not be left in limbo during such periods of uncertainty.
A Downing Street spokesperson reiterated that tax decisions are for the Chancellor to announce at the Budget.