Labour MPs Pressure Burnham to Outline Council-Tax Reform in October Budget

Labour backbenchers are urging Greater Manchester Mayor Andy Burnham and Chancellor John Healey to present a roadmap for replacing England’s council tax with a proportional property levy at the Budget on October 28. MPs in Burnham’s northern strongholds argue the current system, based on 1991 property valuations, “unfairly penalises working-class people” in their constituencies.

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Council tax is levied on households according to outdated property values, meaning a semi-detached home in a northern town can pay more than a multimillion-pound property in London. A JL Partners survey commissioned by Fairer Share found 63 % of respondents view council tax as unfair and 52 % worry about affording next year’s bill. Fairer Share claims roughly three-quarters of households would be better off, saving an average of £550 per year, while a quarter would pay more, with any increase capped at £1,200.

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• Andy Burnham – Mayor of Greater Manchester, Labour; previously said he would not abolish council tax “at this moment in time.”

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• John Healey – Chancellor of the Exchequer, Labour.

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• Afzal Khan – Labour MP for Manchester Rusholme; argues the reform would put “£500” back in most constituents’ pockets.

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• Paul Johnson – former director of the Institute for Fiscal Studies, provost of Oxford University’s Queen’s College; describes the current system as a “mess.”

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• Fairer Share – advocacy group campaigning for a single, proportional property tax.

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• Labour MPs for Fairer Council Tax – parliamentary group pushing the reform.

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Paul Johnson argued that a tax fixed as a proportion of up-to-date property values would be more rational, though politically challenging.

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• “Council tax is one of the most regressive taxes in Britain. It hits hardest constituencies like mine, where people pay more despite often having less.” — Jonathan Brash

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• “Andy Burnham’s very carefully chosen words to date signal he’s certainly still open to reform.” — Fairer Share, spokesperson

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