Andy Burnham is plotting a tax raid on Britain’s middle classes as more than 150,000 families are set to suffer four-figure hikes.
Last week, the leadership hopeful remained committed to Labour’s 2024 pledge to not raise VAT, income tax or National Insurance – but left the door open to other tax increases.
Mr Burnham said there was “some room for movement” regarding new taxes, which has fuelled speculation that the wannabe Prime Minister is co-ordinating an attack on British homeowners across the South.
Allies of the former Mayor of Greater Manchester, however, have admitted that the Makerfield MP was eyeing up a “mansion tax” more extensive than Rachel Reeves’s levy, the Mail on Sunday said.
The Prime Minister-in-waiting is considering ways to slash the tax threshold to bludgeon properties worth more than £1.5million – a price which is far more common across London and the South East due to higher demand.
As a result, such plans could afflict 150,000 families with much higher taxes, and will raise the Treasury only £250million a year.
In a number of areas across London, modest family homes can cost much more than the rumoured tax treshold.
Ms Reeves’s plans, however, would only impact owners of properties worth more than £2million and will take effect from April 2028.
It is estimated that 180,000 households would feel the effects of the Chancellor’s controversial move.
But, Michael Bruce, who is the CEO of estate agent Purplebricks, told The Mail that an extra 150,000 would be impacted under Mr Burnham’s agenda.
Issuing a warning to the ex-Mayor, Mr Bruce said: “If the Government wants growth, this is the wrong place to start.
“Housing is one of the UK’s biggest economic drivers, yet the market is already fragile.
“Policies that discourage people from moving don’t just affect homeowners – they hit buyers, sellers, tradespeople, retailers and the wider economy.”
The “high value council tax surchage” would slap an extra £2,500 on households each year, which rises again for properties above £5million.
But Mr Burnham’s plans to squeeze the South do not stop there.
The MP is said to be considering ditching council tax altogether and introducing a new system based on land values, sending bills in the South soaring.
This system would bear more weight on the South, due to their properties being far more expensive than those in the North, causing southern homeowners to pay up to three times more than their northern counterparts.
Tory leader Kemi Badenoch took aim at the “politics of envy” exhibited by the “King of the North”.
The Labour leadership frontrunner is also understood to be flirting with a tax hike on capital gains tax (CGT) to bring the levy in line with income tax.
CGT is a tax on the profits made from selling off investment or assets, an increase of which would impact people with second homes.
The standard amount of profit that can be made without tax £3,000.
