Shadow Chancellor Mel Stride (pictured) has dismissed new property tax proposals put forward by Andy Burnham, who is expected to become the next Prime Minister later this month.

Stride said Burnham’s plans for a Land Value Tax would mean “a huge tax rise on family homes”.

The Conservatives have pledged to abolish Stamp Duty and pay for it with cuts to the welfare bill.

Endorsed

Burnham has previously endorsed calls for Council Tax and Stamp Duty to be replaced with a flat annual levy of 0.48 per cent of a property’s value.

It would mean a property valued at £500,000 would be taxed at £2,400 a year. Second homes, empty properties, and homes owned by overseas buyers would pay 0.96%.

A new annual property tax would represent a huge tax rise on family homes.

Stride says in The Times: “Behind the language of reform lies a simple reality: a new annual property tax would represent a huge tax rise on family homes.

“The fundamental problem with a property tax based on values is that it assumes the value of a home tells you everything about someone’s ability to pay. It does not.”

A land value tax would effectively become a levy on gardens, Stride argues.

Uncertainty

“A new system would require the regular valuation of millions of properties across the country. Those valuations would not be simple and would often rely on comparisons with other homes sold nearby, creating disputes and uncertainty,” he says.

“Stamp Duty is a terrible tax. Getting rid of it could transform our economy for the better, which is why Kemi Badenoch and I have pledged that a future Conservative government will get rid of Stamp Duty on family homes.”