Politics · United Kingdom · 3 hrs ago
Labour MPs urge property tax to replace council tax and stamp duty
Labour MPs are urging Chancellor John Healey to consider a new property tax at the Budget, replacing council tax and stamp duty.
The proposal, put forward by campaign group Fairer Share, would charge an annual 0.48 per cent of each home’s value.
It would shift bills between regions: an average home in the North East would face about £748 a year, compared with £1,824 in the South East.
Fairer Share says 77 per cent of households would save, by an average of about £550 a year.
But an average home in London would face a bill of about £2,660, leaving a Band D council tax payer nearly £700 worse off.
Supporters say the current system needs reform and that savings could help households with rising costs, but the proposal would mean higher bills for some.
The MPs want Healey to consider the plan at the Budget; the sources do not say whether the government will adopt it.
Labour MPs are urging Chancellor John Healey to consider replacing council tax and stamp duty with a property value tax at the Budget.
The proposal from campaign group Fairer Share is for an annual tax of 0.48 per cent on all homes.
The plan would reduce bills for many households but raise them for some in London and the South East.
Fairer Share says the change would cut bills for 77 per cent of households, with average savings of about £550.
- Who
- Labour MPs, including Luke Myer, Jonathan Hinder and Jonathan Brash, are urging Chancellor John Healey to consider the proposal.
- What
- They want council tax and stamp duty replaced with a Proportional Property Tax based on home values.
- When
- At the Budget; the article was published on 23 October 2026.
- Where
- The proposal applies across England, with the article highlighting different effects in regions including London, the North East and the South East.
- Why
- Supporters say it would make the system fairer, reduce bills for many households and put money back into people’s pockets.
This story does not have two clearly opposing sides.
Andy Burnham had backed a property tax based on the value of land.
Burnham has played down the prospect of imminent council tax reforms.
Labour MPs are urging Chancellor John Healey to consider replacing council tax and stamp duty with a Proportional Property Tax.
- Proposed rate
- 0.48 per cent annually on all homes
- Households expected to benefit
- 77 per cent, according to Fairer Share
- Average claimed saving
- About £550
- Average home in England
- About £1,410 annual property tax under the proposal
- Average home in London
- About £2,660 annual property tax under the proposal
- Average home in the South East
- £1,824 annual property tax under the proposal
2 sources
What people are saying
Now is the time to be bold and grasp the nettle.
A Proportional Property Tax would end the postcode lottery, make the system fairer and put money back into the pockets of struggling households, giving our high streets a much-needed boost too.
A property tax review is the key first step to a fairer system.
council tax is ‘crying out for reform’.