UK Prime Minister says council tax reform being considered

Prime Minister Andy Burnham has said his government faces significant decisions regarding council tax reform, criticizing the current system as unfair for disproportionately burdening households in areas like Greater Manchester compared to owners of more valuable properties in London. The comments, made in a BBC interview, come amid reports that Treasury officials are examining options to overhaul property taxation, though a spokesperson for the Prime Minister has denied that any specific reform is being actively considered.

Speaking on July 27, Burnham highlighted regional disparities, stating that people in Greater Manchester pay a much higher council tax than residents in much larger homes in London. He argued that the failure to update property valuation bands since 1991 has created an unfair system. Burnham acknowledged the need to honor the 2024 Labour manifesto, which did not directly address council tax, indicating that any changes would need to be consistent with those commitments.

Reports suggest officials have been reviewing two potential models. The first is a proportional property tax, which would replace both council tax and stamp duty with a flat annual charge of...