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Burnham Confirms No Stamp Duty Reform in Next Budget

Prime Minister Andy Burnham has confirmed that Stamp Duty will not be reformed in the upcoming Budget. This follows recent reports suggesting the tax was under review for possible abolition.

Burnham told Sky News, “That won’t happen in the next Budget,” directly dismissing speculation about imminent changes to Stamp Duty. The decision comes after concerns that such speculation could freeze the housing market, as happened when former Chancellor Rachel Reeves previously considered similar reforms. According to Sky News, memories of the previous market disruption influenced Burnham’s decision, with the market having stalled for several months until a final decision was communicated.

Ongoing Debate on Property Taxation

The announcement comes amid ongoing debate about property taxation reform in the UK. Burnham has previously expressed support for proposals from Fairer Share, a national campaign advocating for the replacement of Council Tax and Stamp Duty with a Proportional Property Tax. Under the Fairer Share proposal, homeowners would pay an annual levy of 0.48% of a property’s value, which would amount to £1,440 per year on a £300,000 home. The campaign claims that 77% of households would benefit from this system, with increases capped for those paying more until they sell their property. A petition supporting property tax reform has reached 100,000 signatures.

Market Impact and Industry Views

Earlier this month, Zoopla highlighted the impact of Stamp Duty on housing market activity. Richard Donnell, Executive Director at Zoopla, described Stamp Duty as a “meaningful friction” that prevents some homeowners from moving. Donnell noted that for home movers, Stamp Duty is a near-certain cost, and in Southern England, it can reach five figures. He added that six in ten property purchases are made by existing homeowners, and high Stamp Duty costs can deter moves, especially in areas with lower house price inflation. This issue is particularly significant in high-value areas, where Stamp Duty bills can reach tens of thousands of pounds.

Number 10 has not yet responded to requests for comment on the longer-term prospects for property tax reform beyond the next Budget.