Burnham's Tax Plans Face Scrutiny Amidst Calls for Wealth Levy

Andy Burnham's property tax proposal, issued directly from his office, centers on a sweeping transfer of power to Britain's regions. This includes the creation of a new 'Number 10 North' office in Manchester, designed to oversee the government's ambitious decentralisation program.

This Manchester-based office empowers local authorities to reform critical sectors: transport, housing, utilities, and industrial policy. For a London home valued at £600,000, the proposed flat-rate national proportional property tax imposes a £2,880 annual bill.

This represents a stark increase of £812 over the average Band D Council Tax bill, according to the Centre for London. The Centre for London's alternative model, however, mitigates this severe financial impact.

Their refined model cuts the property tax increase to approximately £272 annually for a £600,000 home. It also generates an additional £912 million annually, specifically earmarked to boost social housebuilding initiatives across London.

The current legal framework for property taxation in London primarily governs the Council Tax, a local levy set by councils based on property value. Stamp Duty Land Tax (SDLT) applies exclusively to property transactions.

The Centre for London's proposed property tax models introduce a more sophisticated and potentially revenue-generating framework. This framework fundamentally differs from existing structures by incorporating additional layers of taxation or more complex valuation methodologies.

Historically, several European nations have experimented with wealth taxes, with Norway, Spain, and Switzerland currently operating broad wealth taxes. This demonstrates a clear precedent for such fiscal policies.

Conversely, Germany, the Netherlands, Finland, and Sweden have all abandoned equivalent schemes, underscoring the inherent complexities and potential pitfalls of such ambitious fiscal policies.

A 2% annual tax on UK households with over £100 million in assets, as proposed in some debates, fundamentally reshapes how extreme wealth is managed and invested. This directly affects major companies like Savills, Schroders, and Burberry.

Patriotic Millionaires UK suggests a 2% tax on assets exceeding £10 million could raise a staggering £24 billion for the Treasury. Tax Justice UK claims fewer than 0.04% of the population, approximately 20,000 people, would be affected by a wealth tax on assets over £10 million.

Signatories to the millionaires' letter include prominent figures such as Gary Lineker, Ian Gregg, and Richard Curtis. Their collective involvement amplifies the urgent call for increased contributions from the wealthiest citizens.

A YouGov survey from early 2025 found 75% of respondents supportive of a 2% wealth tax on wealth above £10 million, indicating significant public backing. Patriotic Millionaires by Survation further claims 75% of UK-based millionaires would pay more tax to help protect and strengthen Britain's social, cultural, and economic foundations.

Jonathan Reynolds, however, dismissed the idea of a wealth tax as 'daft' in 2025, highlighting deep internal political divisions on the contentious issue. This internal dissent complicates the path forward for any such proposal.

Nigel Green issued a stark warning that wealth is mobile, stating, 'Money does not sit around waiting for legislation. It moves the moment a Government signals it is willing to go there, and Mr Burnham just signalled it.'

Green insisted Burnham must 'put this to rest today, not let it hang over Britain for months while capital quietly heads for the door.' He fears an immediate exodus of investment, as concerns exist that such a tax could lead to significant wealth migration, ultimately reducing overall tax revenue.

Labour's manifesto pledges to protect working people from hikes to VAT, national insurance, and income tax. This commitment potentially shifts the tax burden towards wealth, aligning with Burnham's broader strategy.

Burnham also announced that most bus fares in England will be capped at £2. He insists this policy is fully covered through reprioritisation of existing budgets, including the cancellation of the £1.8 billion digital ID programme.

The UK economy showed resilience with a 0.1% GDP growth in May 2026, following a 0.1% decline in April. This occurred despite external pressures such as the ongoing impact of the Iran war on global energy costs.