Andy Burnham raises fears of higher council tax for homeowners in the South as PM warns of 'unfairness'

By GREG HEFFER, POLITICAL CORRESPONDENT Published: 13:39, 27 July 2026 | Updated: 13:46, 27 July 2026 Andy Burnham has raised fears of higher council tax for homeowners in the South as he suggested there was an 'unfairness' in the current system. The Prime Minister said ex-Chancellor Rachel Reeves was 'right to start' reforming council tax after she introduced a surcharge for higher-value homes - dubbed a 'mansion tax'. He hinted there could be further changes to come under his premiership, as he pointed to some homes in the North West paying higher council tax than larger homes in London. It came as Downing Street attempted to douse suggestions the Government is actively considering replacing council tax and stamp duty with a levy based on property or land values, which prompted Tory claims of a fresh raid on Middle England. Speaking to the BBC's Laura Kuenssberg, Mr Burnham was asked whether wealthier Britons should be ready to pay more tax now that he is in power. He replied: 'Let me answer it this way, you know, there are people here in Greater Manchester who pay a much higher council tax than people living in much larger homes in London.  'So the Chancellor before, Rachel Reeves, was right to start to reform council tax to create some fairness there in relation to people in homes that are of much greater value, who haven't seen their council tax go up over the years because of the failure to revalue the banding. 'So, you know, that's an example of something that I think was right and fair.' Andy Burnham has raised fears of higher council tax for homeowners in the South as he suggested there was an 'unfairness' in the current system The PM has committed to keeping Labour's manifesto promises on not raising income tax, National Insurance or VAT, but previously said there is 'some room for movement' on tax within the document. In the BBC interview, Mr Burnham added there are 'big decisions ahead' on council tax but insisted he would take a 'cautious approach' with the nation's finances. 'We need to honour the manifesto upon which Labour was elected, and if I was to bring forward any changes, obviously people would rightly say, well, is this consistent with that manifesto?,' he said. 'So, you know, there are big decisions ahead, you are right about that. I need to be very prudent when it comes to the public finances. 'I will stick to the fiscal rules, and I know people try and create a sense that I won't take that cautious approach, I will take that cautious approach.' Mr Burnham has previously said he has been 'persuaded' of the argument for reforming the council tax system. But Downing Street said suggestions the PM is actively considering scrapping council tax or stamp duty are 'not true'. The PM's official spokesman added: 'As has always been the case, decisions on tax are a matter for the Chancellor [John Healey] to set out at fiscal events.' The Government has come under pressure from Labour backbenches to reform council tax, including from chairman of the cross-party group of MPs on council tax reform, Jonathan Brash. The Labour MP for Hartlepool told the i Paper 'wholesale reform' was needed. Mr Brash has previously pointed to band A homes in Hartlepool paying nearly 2.5 times more than in Westminster. He said: 'Council tax is one of the most unfair taxes in Britain, and nowhere is that injustice clearer than in towns like Hartlepool.' But the Tories warned any potential change was Labour 'looking for more ways to tax middle England'. Shadow housing secretary James Cleverly said: 'Andy Burnham and Labour are just looking for more ways to tax middle England, and raise taxes on people's homes.' 'Replacing council tax and stamp duty with a new house price tax would not be a tax cut for hardworking families – quite the reverse: people across England would end up paying more. 'This is just smoke and mirrors from the party that has already hiked both council tax and stamp duty. 'The Conservatives are the only party that will keep tax on the family home down – including by scrapping stamp duty entirely for primary residences.'