Andy Burnham has hinted at higher taxes for landowners and property wealth as he launched his campaign to return to Westminster and position himself as a future Labour leader. The Greater Manchester mayor suggested Britain’s tax system unfairly favours wealth tied up in land and property, arguing there was a strong case for major reform if he entered government.
Speaking during the launch of his campaign ahead of the upcoming Makerfield by-election, Burnham said land in the UK was “undertaxed” and pointed to council tax and business rates as areas he believes need overhauling.
The comments are likely to spark fears of fresh tax rises as Burnham attempts to carve out a more radical platform within Labour while remaining committed to the party’s existing fiscal rules.
Burnham insisted he would not raise headline rates of income tax, VAT or National Insurance, saying Labour needed to maintain trust with voters and financial markets.
However, he indicated he was willing to consider broader changes to how wealth and property are taxed, including possible reforms to capital gains tax and council tax.
He also repeated his long-standing support for scrapping inheritance tax and replacing it with a dedicated levy to help fund social care.
Burnham said: “I see a big case for land and business and property tax to be changed.”
The former Labour leadership contender has argued for years that Britain should shift more of the tax burden away from workers’ wages and towards wealth, land and assets.
During his 2010 Labour leadership campaign, Burnham backed the idea of a land value tax, claiming it could eventually replace stamp duty and make it easier for younger people to get onto the property ladder.
His latest remarks came as economists warned Britain’s property tax system is already among the heaviest in the developed world.
According to OECD figures, the UK raises a larger share of its economy through property-related taxes than most advanced nations because of council tax, business rates and stamp duty combined.
Critics have long argued council tax relies on outdated property valuations and unfairly hits lower-income households harder in some areas.
Business rates have also faced mounting criticism for placing pressure on high street shops and hospitality firms while online retailers operating from warehouses often face lower relative costs.
Labour pledged in its 2024 manifesto to replace the current business rates system, arguing it discourages investment and harms town centres.
Burnham has separately backed introducing visitor levies on hotels, which he says could help reduce pressure on businesses in the hospitality sector.
He also signalled support for stronger public oversight of utilities, including water companies, though stopped short of explicitly calling for nationalisation.