Prime Minister Andy Burnham has placed council tax reform firmly on the political agenda, describing the existing system as outdated and unfair. He has previously supported replacing council tax and Stamp Duty Land Tax with a property tax linked more closely to the current value of a home.

One model associated with Burnham would charge property owners approximately 0.48% of a home’s current market value each year, rather than placing homes into council tax bands based on 1991 valuations.

However, council tax has not been abolished. No nationwide replacement system, final tax rate or implementation date has been confirmed by the government as of 27 July 2026. Households must therefore continue paying their existing council tax bills unless they qualify for a discount, exemption or Council Tax Reduction.

Burnham Council Tax Plans at a Glance

Key question	Current position
Does Andy Burnham want to reform council tax?	Yes
Has council tax been abolished?	No
What could replace it?	A proportional property tax or land value tax
Rate discussed under the Fairer Share model	0.48% of a property’s current value
Proposed rate for some second or empty homes	0.96%
Who would normally pay the replacement tax?	The property owner
Would Stamp Duty also be removed?	It could be under the Fairer Share proposal
Has the government confirmed the final policy?	No
Do current council tax bills still have to be paid?	Yes

What Has Andy Burnham Said About Council Tax?

Andy Burnham has argued that council tax requires fundamental reform because bills are still based on property values from several decades ago.

In England, council tax bands are determined by what a property would theoretically have been worth on 1 April 1991. Wales uses property values from 1 April 2003. The Valuation Office Agency continues to use these historic valuation dates when placing properties into council tax bands.

Burnham has described the existing system as highly regressive and questioned whether continued reliance on 1991 property values can be justified.

His broader position is that property taxation should better reflect the current value of a home. That could involve:

• Revaluing properties within the existing council tax system.
• Creating additional council tax bands.
• Replacing council tax with a proportional property tax.
• Introducing a land value tax.
• Reforming council tax and Stamp Duty together.

Although Burnham has expressed support for reform, reports differ over the precise model that his government may eventually adopt. A formal government proposal, consultation response or Bill would be needed before existing council tax arrangements could be replaced.

Is Andy Burnham Scrapping Council Tax?

Andy Burnham has supported the principle of replacing council tax, but that does not mean the tax has already been scrapped.

The most frequently discussed option is the model developed by the Fairer Share campaign, which would replace council tax and Stamp Duty Land Tax with a single annual Proportional Property Tax.

Under that model:

• The standard rate would be 0.48% of the property’s current value.
• The property owner would be responsible for paying.
• Tenants would no longer receive a direct council tax bill.
• A higher rate could apply to second homes, empty homes and some properties owned by non-UK residents.
• Stamp Duty would be removed from purchases covered by the scheme.
• Payment deferral could be offered to homeowners who are unable to pay immediately.

Fairer Share is a campaigning organisation, not a government department. Its proposed rates and safeguards should not be treated as confirmed government policy.

Why Does Burnham Want Council Tax Reformed?

The main criticism is that council tax bills do not rise proportionately with present-day property values.

Homes in England are divided into eight bands, from Band A to Band H. A Band H household generally pays twice the Band D rate, even though the property may be worth many times more than a lower-band home.

Regional house-price changes since 1991 have also created significant differences between what properties are worth and the tax bands into which they fall.

This can lead to situations where:

• A relatively modest home has a high council tax bill compared with its current value.
• A multimillion-pound property pays a comparatively low percentage of its value.
• Households in lower-value areas contribute a greater proportion of their housing wealth through council tax.
• Properties that have increased sharply in value remain within bands based on 1991 prices.

For the 2026/27 financial year, the average Band D council tax bill in England is £2,392, an increase of £111 or 4.9% from 2025/26. The average council tax amount per dwelling is £1,868.

How Would Burnham’s Proposed Property Tax Work?

A proportional property tax would calculate the annual bill by multiplying the property’s current market value by a fixed percentage.

Using the frequently discussed Fairer Share rate, the calculation would be:

Current property value × 0.48% = estimated annual property tax

The following examples demonstrate how this could work.

Current property value	Calculation	Indicative annual tax
£150,000	£150,000 × 0.48%	£720
£200,000	£200,000 × 0.48%	£960
£250,000	£250,000 × 0.48%	£1,200
£300,000	£300,000 × 0.48%	£1,440
£400,000	£400,000 × 0.48%	£1,920
£500,000	£500,000 × 0.48%	£2,400
£750,000	£750,000 × 0.48%	£3,600
£1 million	£1 million × 0.48%	£4,800
£2 million	£2 million × 0.48%	£9,600

These are illustrative calculations, not official tax bills. Any government scheme could use a different rate, introduce allowances, cap increases or apply different rules to particular properties.

How Would Second Homes Be Taxed?

The Fairer Share model proposes a higher rate of 0.96% for second homes, empty properties and certain homes owned by people who live abroad.

This is twice the proposed standard rate of 0.48%.

Property value	Standard rate at 0.48%	Higher rate at 0.96%
£200,000	£960	£1,920
£300,000	£1,440	£2,880
£500,000	£2,400	£4,800
£750,000	£3,600	£7,200
£1 million	£4,800	£9,600

Local authorities in England already have powers to charge council tax premiums on certain empty and second homes. Since April 2025, councils have been able to apply a premium of up to 100% to qualifying second homes, subject to statutory exceptions.

A future proportional property tax would need to clarify whether these local premiums would disappear, continue separately or be incorporated into the national rate.

Who Could Pay Less Under the Burnham Council Tax Plans?

Lower-value properties in areas with relatively high council tax charges could benefit from a proportional system.

This may include some households in:

• Northern England.
• The Midlands.
• Parts of the South West.
• Coastal communities.
• Former industrial towns.
• Areas where property prices have not risen as rapidly as in London.

For example, the indicative charge on a £200,000 property under a 0.48% tax would be £960 a year. That could be lower than the existing council tax bill in many local authority areas.

Fairer Share claims that approximately 75% to 77% of households could be better off under its model, with average annual savings of around £556. These figures are campaign estimates and have not been adopted as official government forecasts.

Whether an individual household would save money would depend on:

• The property’s assessed market value.
• Its existing council tax band.
• The local authority’s current charges.
• Any discounts currently received.
• Whether transitional protections were introduced.
• The final rate selected by the government.

Who Could Pay More?

Owners of high-value properties could face larger annual bills, particularly in London and parts of South East England.

Households potentially paying more could include:

• Owners of valuable homes currently receiving relatively low council tax bills.
• People who purchased homes many years ago that have increased substantially in value.
• Owners of second homes.
• Overseas owners of UK residential property.
• Owners of long-term empty properties.
• Landlords with property portfolios in high-value areas.

A property worth £1 million would face an indicative annual bill of £4,800 under a 0.48% tax. A £2 million property would face an estimated £9,600 bill before any additional surcharge or special rules were considered.

That does not necessarily mean every owner of a valuable home would immediately pay the full calculated amount. Transition caps, deferrals, allowances and phased increases could significantly alter the final bill.

Would Pensioners Have to Pay More?

Some pensioners own valuable properties but have relatively modest incomes. This is sometimes described as being asset-rich but cash-poor.

A tax based on current property value could create affordability problems for people who purchased a home decades ago and have since seen its value rise considerably.

Possible safeguards include:

• Allowing the bill to be deferred until the property is sold.
• Placing a legal charge against the property for deferred tax.
• Capping annual increases during the transition.
• Offering income-based reductions.
• Protecting people receiving Pension Credit.
• Allowing payment from the estate after the owner dies.
• Introducing special rules for long-term owner-occupiers.

Fairer Share proposes allowing homeowners who cannot afford the tax to defer payment. It has also previously proposed limiting increases during the transition to no more than £1,200 a year. These protections remain campaign proposals rather than confirmed government policy.

What Would the Plans Mean for Tenants?

Under the proportional property tax model, the legal responsibility for paying would move from the occupier to the property owner.

That means a private tenant would no longer receive a separate council tax bill. Instead, the landlord would pay the property tax.

However, tenants would not necessarily avoid the cost entirely. A landlord could attempt to recover part of the additional expense through higher rent, subject to tenancy law and market conditions.

Fairer Share acknowledges that landlords may pass some or all of the property tax cost to tenants. Its argument is that placing the legal liability on owners would make the system simpler and ensure the tax remained attached to property ownership.

Possible effects for renters

Possible advantage	Possible risk
No separate council tax bill	Landlords may increase rent
Simpler household budgeting	Rent increases may be less transparent
Liability remains with the owner	High-value rental areas could become more expensive
Fewer disputes over occupier liability	Tenants may lose existing council tax discounts
Easier treatment of shared properties	Rules would be needed for supported and social housing

The government would need to decide how to protect low-income tenants and whether existing Council Tax Reduction support would be transferred into Universal Credit, housing support or another benefit.

Would Single-Person Council Tax Discounts End?

The existing council tax system normally provides a 25% discount where only one liable adult occupies a property.

A proportional property tax based entirely on property value might not include the same single-person discount. The Fairer Share proposal focuses on property ownership and value rather than the number of occupants.

This could affect:

• People living alone.
• Widows and widowers.
• Separated or divorced homeowners.
• Single pensioners.
• Working-age adults living independently.

Any final government policy would need to explain whether the 25% discount would be retained, replaced with targeted support or removed.

Until a new law takes effect, eligible households can continue claiming the existing single-person discount from their local council. Current discounts, exemptions and reductions remain available under the established council tax system.

Would Stamp Duty Be Scrapped as Well?

One significant part of the model supported by property tax campaigners is the proposed abolition of Stamp Duty Land Tax on owner-occupied homes.

Stamp Duty is currently paid when a qualifying property is purchased in England or Northern Ireland. Scotland and Wales operate separate property transaction taxes.

Critics argue that Stamp Duty discourages people from moving because it creates a substantial upfront cost. This may particularly affect:

• Families moving to larger homes.
• Older homeowners considering downsizing.
• People relocating for work.
• First-time buyers purchasing above relief thresholds.
• Households moving because of changing care requirements.

Replacing Stamp Duty with an annual property tax could reduce the initial cost of moving. However, it would replace a one-off transaction tax with a continuing annual liability.

The government has not confirmed that Stamp Duty will be abolished. Any change would require detailed decisions about property purchases, second homes, landlords, commercial property and transactions already in progress.

Is a Proportional Property Tax the Same as a Land Value Tax?

The two terms are related but do not describe exactly the same system.

Proportional property tax	Land value tax
Based on the total value of the home and land	Based primarily on the underlying land value
Includes the building’s value	Usually excludes or reduces the importance of buildings
Easier for households to estimate	May require more complex land valuations
Tax can rise following home improvements	Improvements may not directly increase a land value tax
Often calculated as a percentage of market value	Calculated using the value of the site

Burnham has expressed interest in broader property tax reform, and both proportional property taxation and land value taxation have appeared in discussions surrounding his policy agenda. The final model has not been settled publicly.

Is the High Value Council Tax Surcharge Part of Burnham’s Plan?

The High Value Council Tax Surcharge is a separate measure that was announced at the Autumn Budget 2025.

It is scheduled to take effect in England from April 2028 and will apply to owners of homes valued at £2 million or more in 2026 prices.

The scheduled annual charges are:

Property value	Annual surcharge
£2 million to £2.5 million	£2,500
More than £2.5 million to £3.5 million	£3,500
More than £3.5 million to £5 million	£5,000
More than £5 million	£7,500

The surcharge is expected to apply to property owners rather than occupants and would initially be charged in addition to ordinary council tax. Fewer than 1% of homes in England are expected to fall above the £2 million threshold.

A wider Burnham council tax reform could eventually interact with this surcharge, but the government has not confirmed whether it would be retained, amended or absorbed into a replacement property tax.

Could Mayors Receive New Tax-Raising Powers?

Burnham has also supported greater fiscal devolution for English mayors.

At present, combined authority mayors have limited tax-raising powers. Some mayoral functions are funded through council tax precepts, transport levies, government grants and locally retained income.

Potential future powers could include:

• Larger mayoral council tax precepts.
• Tourist or overnight visitor levies.
• Workplace parking levies.
• Local infrastructure charges.
• Additional business rates powers.
• Taxes linked to land-value increases.

The House of Commons Library has examined reports that Burnham could provide mayors with additional tax-raising powers. However, the precise powers, limits and accountability requirements have not been confirmed.

When Could Burnham’s Council Tax Changes Begin?

There is currently no confirmed implementation date for replacing council tax.

A major reform would require several stages:

1. The government would need to publish its preferred model.
2. A formal consultation would probably be held.
3. Property valuation methods would need to be developed.
4. Parliament would need to approve legislation.
5. Councils would require new billing and collection systems.
6. Transitional protections would need to be established.
7. Support arrangements for low-income households would need to be created.
8. Homeowners would need adequate notice of their new liabilities.

Valuing millions of residential properties would be one of the most substantial administrative challenges. The government would also need a system for appeals, valuation updates, unusual properties and homes that had recently been extended or renovated.

Therefore, even if the government announced a firm policy soon, council tax would be unlikely to disappear immediately.

Would the Changes Apply Across the Whole UK?

Council tax and property transaction taxes are devolved, so a reform introduced by the UK government would not necessarily apply across all four nations.

Nation	Existing local property tax
England	Council Tax
Scotland	Council Tax
Wales	Council Tax
Northern Ireland	Domestic rates

Stamp Duty Land Tax applies in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax, while Wales uses Land Transaction Tax.

A Burnham government could legislate directly for England in many areas of council tax policy. The devolved administrations would decide whether to introduce comparable reforms in Scotland, Wales or Northern Ireland.

What Should Households Do Now?

Households should continue paying their existing council tax bills. Political proposals, media reports or campaign recommendations do not change a person’s current legal liability.

Residents can take several practical steps:

• Check the council tax band recorded for the property.
• Compare the band with similar neighbouring homes.
• Apply for a single-person discount where eligible.
• Check whether anyone in the household is disregarded for council tax.
• Apply for Council Tax Reduction if household income is low.
• Check eligibility for a disability-related band reduction.
• Contact the council before missing a payment.
• Avoid cancelling a Direct Debit because of reports that council tax may be abolished.

Property owners can challenge a council tax band through the official process, but they should understand that a challenge can result in the band remaining unchanged, decreasing or, in some circumstances, increasing.

Conclusion

The Burnham council tax proposals could produce the most significant reform of residential property taxation in England for decades.

Replacing historic council tax bands with an annual tax based on current property values could reduce bills for many lower-value households while increasing charges for owners of expensive homes. Combining the change with the abolition of Stamp Duty could also make moving home less costly.

Nevertheless, the 0.48% rate, landlord liability, second-home rate and payment protections remain proposals rather than confirmed government rules. Until legislation is approved and an implementation date is announced, households must continue paying council tax under the existing system.

Frequently Asked Questions

Is Andy Burnham Getting Rid of Council Tax?

Burnham supports significant council tax reform and has backed the principle of replacing it with a tax more closely connected to current property values. However, council tax has not been abolished and no final replacement has been enacted.

What is the Proposed Burnham Property Tax Rate?

The rate most frequently associated with the proposal is 0.48% of a property’s current market value. This comes from the Fairer Share model and is not yet a confirmed government tax rate.

Would Homeowners Pay the New Tax?

Under the Fairer Share proposal, the legal liability would fall on property owners. Owner-occupiers and landlords would therefore pay directly.

Would Tenants Stop Paying Council Tax?

Tenants would not receive a direct property tax bill under the proposed model. However, landlords could seek to recover their costs through rent.

Would Pensioners Be Exempt?

No universal pensioner exemption has been confirmed. Possible protections include deferrals, income-based support and limits on annual increases.

Would Second Homes Pay More?

The Fairer Share model proposes a rate of 0.96% for second homes, empty homes and certain properties owned by non-residents. The government has not formally adopted this rate.

Would Stamp Duty Be Abolished?

Stamp Duty would be removed under the full Fairer Share proposal. Burnham’s government has not yet confirmed that this policy will be implemented.

Would People in London Pay More?

Many owners of high-value London properties could pay more under a tax based on current market values. However, the outcome would depend on the final rate, allowances and transition rules.

Would People in Northern England Save Money?

Some households in lower-value areas with comparatively high council tax bills could save. Individual outcomes would depend on the property’s current value and existing local bill.

Should Households Stop Paying Council Tax?

No. Existing council tax bills remain legally enforceable. Households experiencing financial difficulty should contact their council and check whether they qualify for Council Tax Reduction or another form of support.