A group of Labour Members of Parliament has called on Chancellor John Healey to introduce a property-value tax at the upcoming Budget, aiming to replace current council tax and stamp duty systems. The proposal, supported by campaign group Fairer Share, seeks to implement an annual tax set at 0.48 percent of property values, which would significantly shift the tax burden across different regions of the country.

Under the suggested framework, homeowners in London and the South East would face much higher annual charges, with average bills expected to increase by several hundred pounds. For example, a property in the South East could see an average annual tax of approximately £1,824, while a comparable home in the North East would be subject to a charge around £748. Proponents argue that the new system would result in lower overall tax liabilities for 77 percent of households nationwide, with average savings near £550, predominantly benefiting areas in the North where Labour has traditionally held greater support.

The campaign group argues the reform would contribute to addressing regional disparities in housing costs and taxes, potentially providing political advantages for Labour in constituencies where the party has experienced recent electoral losses. Labour MPs representing northern seats emphasize that a proportional tax based on property value would replace existing regressive measures such as council tax and stamp duty, thereby reducing the financial strain on families in those regions.

Notably, Andy Burnham, the party leader and Prime Minister, has previously endorsed a tax based on land value, though his public support for such measures has lessened since taking office. The proposed property tax remains a contentious issue within the party, reflecting ongoing debates about the best approach to property taxation and regional equity.

The government has yet to confirm whether a property-value tax will feature in the next Budget, but the calls from Labour MPs and advocacy groups suggest that reforming the housing tax system will continue to be a topic of political focus ahead of the announcement.