Andy Burnham's property tax raids set to leave hundreds of thousands of Britons £1,000 worse off

Andy Burnham's long-standing support for replacing council tax with a land value levy could leave hundreds of thousands of London households facing annual bill increases of around £1,000.

The former Greater Manchester Mayor has previously voiced support for a land value tax, arguing that the existing council tax system is unfair and in need of reform.

"I've long been persuaded of the argument for a land value tax," Mr Burnham said.

"It's a highly regressive tax. I see a big case for land and property and business taxation to be changed."

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Research by Policy Engine analysts Vahid Ahmadi and Max Ghenis examined the distributional impact of replacing council tax with a land value levy and found higher earners would be among those most affected.

Their analysis suggests households in the second-wealthiest tenth of the population would pay an average of £991 more each year, while those in the top tenth would see bills rise by an average of £966 annually.

Given the concentration of high-value properties in London, the capital is expected to experience a disproportionate share of the increases associated with such a change.

The findings indicate that the poorest tenth of the population would gain an average of £481 a year under the proposed system, potentially benefiting residents in some of London's more deprived communities.

Supporters of a land value levy argue it would create a fairer taxation system by aligning charges more closely with the underlying value of land, while critics warn it could significantly increase costs for homeowners in areas with higher property values.

Concerns have also been raised about the potential impact on London's public finances and wider economy if tax reforms were combined with efforts to redirect public spending towards other regions.

Sir Sadiq Khan has previously stressed the importance of maintaining investment in the capital, arguing that London's economic performance benefits communities across the UK.

Mr Burnham has spent years advocating for greater devolution and investment for Greater Manchester and other parts of the country outside London, prompting debate about how a government led by him might balance regional priorities with support for the capital.

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Heathrow's proposed third runway may face renewed scrutiny should a future Government reconsider its approach to airport expansion.

Mr Burnham has previously argued that greater investment should be directed towards regional airports, while Energy Secretary Ed Miliband has voiced opposition to expansion at Heathrow.

Any decision on council tax reform or airport expansion would require detailed consultation and legislation before being implemented, with supporters and critics expected to continue debating the potential economic consequences of such proposals.

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