Prime Minister Andy Burnham has received a warning from former Prime Minister Gordon Brown against increasing property taxes in the upcoming Budget scheduled for 28 October.
Brown told Burnham and Chancellor John Healey that property is “taxed quite heavily” in Britain and suggested that existing property taxes, including Stamp Duty, may require reform rather than expansion.
Call for tax reform
Speaking on The Rest Is Money podcast, Brown questioned the current structure of property taxation. “The funny thing is that property is taxed quite heavily in Britain as part of a wealth tax. So I think you’ve got to look at a reform of existing taxes,” Brown said, according to the Daily Telegraph.
“If you’re taxed on property only because it’s the Council Tax, or when you transfer your property, which is the Stamp Duty, then people may say, well, you know, is that the best way of taxing wealth? And I think that’s what the Government should look at,” he added.
Proportional property tax proposal
Burnham has previously expressed support for a scheme launched by Fairer Share, a national campaign proposing to replace Council Tax and Stamp Duty with a Proportional Property Tax. Under this proposal, homeowners would pay an annual levy of 0.48% of a property’s value, equating to £1,440 annually on a £300,000 home.
However, Burnham has ruled out changes to Stamp Duty in the October Budget. The decision comes as financial markets experience volatility, which could affect property market conditions.
Mansion tax concerns
Knight Frank has warned that the Mansion Tax remains a potential target in the upcoming Budget. The agency suggested that current Mansion Tax rates may prove to be only “introductory rates”, indicating possible future increases.
The warning comes amid broader concerns about the property sector, with high street challenges affecting estate agencies and landlords adjusting their requirements in response to regulatory changes.
The Budget on 28 October will provide clarity on the Government’s approach to property taxation, with investors and industry professionals closely monitoring potential policy shifts that could affect property values and transaction costs.
