Article last updated 25 June 2026.
Andy Burnham, the leading candidate to be the next prime minister, has signalled a different direction on tax, property, and public spending.
Nothing is confirmed. His past comments don’t guarantee future policy, but they give an indication of what could change if he does become prime minister.
If you have property, investments, or a larger estate, it’s important to understand how potential UK tax changes under Andy Burnham could affect your long‑term plans
A land value tax (LVT) would replace the current system of property taxation with an annual charge based on the value of the land your property sits on, rather than the building itself.
Burnham has said that land is under-taxed, and that he would advocate for a land value tax to replace stamp duty and council tax.
If introduced, it could increase ongoing costs for owners of high‑value properties or properties occupying a large plot of land, while potentially making it possible to reduce other property-related taxes. This could also affect property prices, as new taxes tend to be reflected in valuations. High-value houses in prime locations like central London might fall in value as buyers factor in higher ongoing tax costs. But flats could remain in demand, rising in value as the cost burden for the freeholder would be spread across multiple units.
Stamp duty could be reformed or abolished as part of a wider overhaul of property taxation, but any upfront saving is likely to be offset by new annual property-based charges.
Burnham has criticised stamp duty as a tax on the aspirations of young people to set down roots and move forward in life. This has prompted speculation that stamp duty could be reformed or even removed as part of wider changes to property taxation.
If that happened, it could make moving home cheaper upfront, but those savings might be offset by higher, ongoing, property‑based taxes. For now, financial planning decisions should still be based on your personal circumstances, rather than on trying to time potential policy changes.
Council tax could be reformed or replaced entirely, with any new system likely to increase costs for owners of higher-value properties.
Burnham has described council tax as highly regressive and not justifiable based on the 1991 property valuations that are still in force.
Council tax reform was in the crosshairs during the last Autumn Budget, and it could be in scope in this year’s Budget.
Any changes might shift the tax burden – some households could pay more, others less – depending on how a new system is designed. If you own a higher‑value property, it’s worth being aware that reforms could increase your annual costs. We already have the high-value council tax surcharge (HVCTS) coming in 2028. This is an annual charge that will affect homeowners whose property is valued at £2m or more. If you own a second home worth £2m or more, a land value tax could increase your annual costs even if stamp duty disappears.
Inheritance tax (IHT) could be scrapped in its current form and replaced with a flat-rate care levy on estates – but this wouldn’t necessarily reduce what larger estates pay overall.
Burnham has been vocal about abolishing IHT in its current form, replacing it instead with a care levy, which everybody would pay, but with the wealthiest paying the most.
This could simplify the system, but it wouldn’t necessarily reduce what families pay overall – especially for larger estates. If passing on your wealth is important to you, it’s worth reviewing your plans now rather than waiting for policy to be confirmed.
Burnham hasn’t called for a specific wealth tax, but his broader tax agenda signals a clear shift toward taxing assets and property more heavily.
His position is that labour is overtaxed and assets and wealth are undertaxed, and this should be remedied.
This suggests that the overall tax system could shift towards taxing wealth and assets more heavily. That could still affect property, investments, and estates, even without creating a standalone wealth tax.
Income tax rates are unlikely to rise, but changes to thresholds and allowances could still increase the amount you pay – even if the headline rate stays the same.
While there’s been a commitment not to raise headline rates, and thresholds have been frozen until the end of this parliament, there’s often discussion about reviewing thresholds and allowances.
Changes like this can still affect how much tax you pay – even if the rates themselves don’t move. For example, frozen thresholds or adjusted allowances can increase your tax bill over time.
Burnham has acknowledged concerns about the frozen personal allowance and proposed a review. Whether a policy change will actually come about remains to be seen. If it does happen, it could reduce the effects of ‘fiscal drag’, where rising pensions and salaries push more people into higher tax bands, meaning they’ll pay more income tax even though tax rates haven’t changed. This would help ease the tax burden for many people.
Capital gains tax (CGT) could be reviewed and potentially aligned with income tax rates – a change that would significantly increase the tax bill for investors selling assets outside tax-efficient wrappers.
Burnham’s view on the need to tax wealth more suggests that a change to CGT rates is possible, when he becomes Labour leader.
The CGT allowance has been cut several times over the past few years, from £12,300 to £3,000. We could potentially see the £3k allowance reduced further, or CGT tax rates equalised with income tax rates. This could increase your CGT bill when investing and selling investments held outside tax-efficient wrappers such as individual savings accounts and pensions.
For investors, this could influence decisions about when to sell assets or how to structure portfolios. It’s one of the areas that clients are already asking about, even though there are no firm proposals.
The UK political landscape is in flux. We've seen several different prime ministers over the past few years. This uncertainty can be unsettling, but a robust financial plan will give you peace of mind and allow you to dial down the noise.
We don't have a crystal ball, and sensible planning has to be based on the situation now. However, indicators point to a shift away from taxing income and toward taxing property, assets, and wealth.
It’s always important to review your financial plans on a regular basis, but especially as things evolve over the months to come. Your financial adviser is here to guide you through this. Speak to your usual Rathbones contact or complete the enquiry form below to start the conversation.
There’s no need to make immediate changes based on potential policy shifts alone. However, it’s sensible to review your plans so you’re well positioned if reforms are introduced in the future.
1. Sense-check your tax efficiency
2. Review your property and estate strategy
3. Speak to your adviser before making changes
Fill out our form below and we'll get in touch to arrange an initial, no-obligation conversation with one of our financial planning experts.
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