Andy Burnham’s long-running support for replacing council tax with a land value levy could leave hundreds of thousands of London households paying around £1,000 more each year.
The former Mayor of Greater Manchester has previously backed a land value tax, saying the current council tax system is unfair and needs major reform.
“I’ve long believed in the case for a land value tax,” Mr Burnham said.
“It’s a deeply regressive tax. There’s a strong argument for changing how land, property and business are taxed.”
Research from Policy Engine analysts Vahid Ahmadi and Max Ghenis looked at the impact of replacing council tax with a land value levy and found higher earners would likely be hit hardest.
Their study suggests households in the second-richest tenth of the population could pay an average of £991 more per year, while those in the wealthiest tenth may face annual increases of around £966.
With a large number of high-value homes concentrated in London, the capital is expected to shoulder a significant share of those higher costs.
The findings also showed the poorest tenth of households could gain an average of £481 annually under the proposed system, potentially helping residents in some of London’s most deprived areas.
Supporters argue a land value levy would create a fairer tax system by linking charges more closely to land values. Critics, however, warn it could sharply raise costs for homeowners in expensive areas.
Questions have also been raised about the wider impact on London’s finances and economy, particularly if tax reforms were paired with moves to shift more public spending to other regions.
Sir Sadiq Khan has previously stressed the need to protect investment in the capital, arguing London’s economic success benefits communities across the UK.
Mr Burnham has long pushed for greater devolution and investment in Greater Manchester and other regions outside London, fuelling debate over how a government led by him might balance regional priorities with support for the capital.
Heathrow Airport’s proposed third runway could also face renewed scrutiny if a future government rethinks airport expansion.
Mr Burnham has argued for greater investment in regional airports, while Ed Miliband has voiced opposition to expansion at Heathrow.
Any changes to council tax or airport expansion would require detailed consultation and legislation before taking effect, with supporters and critics likely to continue debating the economic impact of such reforms.
