Council tax: ‘big decisions’ ahead as Andy Burnham hits out at North-South unfairness

It came as No10 denied the Government was considering replacing council tax and stamp duty with a tax based on property or land values.

Andy Burnham has said his Government is facing “big decisions” about council tax, as he criticised the unfairness of the current system where some people outside London pay higher rates than those living in the most expensive homes in the capital.

The Prime Minister acknowledged he needed to stick to the manifesto Labour was elected on in 2024 but said he understood how people felt the current system was disproportionate.

It came as No 10 denied the Government was considering replacing council tax and stamp duty with a tax based on property or land values.

Speaking to Laura Kuenssberg on the BBC’s Panorama programme, Mr Burnham said: “There are people here in Greater Manchester who pay a much higher council tax than people living in much larger homes in London.

“So the Chancellor before, Rachel Reeves, was right to start to reform council tax to create some fairness there in relation to people in homes that are of much greater value, who haven’t seen their council tax go up over the years because of the failure to revalue the banding.

“So that’s an example of something that I think was right and fair.”

He added: “We need to honour the manifesto upon which Labour was elected, and if I was to bring forward any changes, obviously people would rightly say, well, is this consistent with that manifesto?

“So there are big decisions ahead, you are right about that.”

Mr Burnham has previously said he has been “persuaded” of the argument for reforming the system.

Downing Street said suggestions the Prime Minister is actively considering scrapping council tax or stamp duty are “not true”.

The Prime Minister’s official spokesman added: “As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events.”

Only three of Yorkshire’s 12 local authorities did not raise council tax by the maximum 4.99 per cent in April.

Unless they are granted special permission from the Government, local authorities must hold a public vote if they wish to increase council tax by more than 2.99 per cent, as well as adding 2 per cent onto the social care precept.

South Yorkshire councils of Barnsley, with 3.4 per cent, Rotherham, with 3.95 per cent, and Doncaster, 2 per cent after Reform councillors voted down the Labour mayor, were the only three not to hit this figure.

Residents in Bradford saw a 4.99 per cent increase in council tax, only a year after it was hiked by 9.99 per cent.

Once again, the council was granted exceptional financial support by the Government, which meant it can borrow an additional £78m to help avoid bankruptcy.