A group of northern Labour MPs is urging Andy Burnham (pictured) to scrap Council Tax and replace it with a Land Value Tax.

They argue the current system is unfair because Council Tax is based on property valuations from 1991.

Unlike Council Tax, a Land Value Tax (LVT) is an annual charge based on the value of the land beneath a property rather than the buildings standing on it. It would have a far bigger impact on high-value areas in London and the South East, where land values are highest.

Punishing working-class northerners for living in a poorer area.”

Jonathan Hinder, Labour MP for Pendle and Clitheroe, told the Telegraph that “momentum among Labour MPs is real and growing” for the introduction of LVT.

“This change is achievable in this Parliament – but it requires the leadership to grasp the nettle and make the bold choice we need.”

He added it was absurd that “someone in a London town house worth millions pays less Council Tax than a constituent of mine in a house worth £100,000 – yet that is precisely how Council Tax works, punishing working-class northerners for living in a poorer area”.

Yes, some would lose out, but it would, and should, be the wealthy in our society shouldering that burden.”

Jonathan Brash, Labour MP for Hartlepool, suggested that “70% of households in the North East would be better off” under a proportional property tax.

“Nearly a third would save as much as £1,500 a year,” he adds.

“Yes, some would lose out, but it would, and should, be the wealthy in our society shouldering that burden. If we are not prepared to make the wealthy pay so the poor can pay less, what exactly are we for?”

Andy Burnham (main picture) has long supported the proposal, saying: “I think land is under-taxed.”