A group of economists, including Lord O’Neill of Gatley, a former Goldman Sachs chief economist and adviser to Andy Burnham, has called for a comprehensive restructuring of the UK tax system. The proposal includes replacing stamp duty and council tax with a new annual property value tax, among other reforms.

The economists have issued an open letter to the next prime minister, emphasizing the urgent need for fiscal overhaul to address the country’s ongoing economic challenges. The letter supports a five-year initiative from University College London’s Institute for Global Prosperity, due to be launched on July 9. This initiative, called Prosperity 2030, aims to demonstrate how coordinated fiscal, welfare, and infrastructure policies could help resolve Britain’s persistent economic stagnation.

Andy Burnham, who is expected to become prime minister on July 20 if he wins the Labour Party leadership, is currently developing a policy platform amid concerns over the nation’s high debt levels and sluggish growth. The proposed tax reforms have attracted attention from political and financial sectors in Westminster and the City as Burnham prepares to appoint his chancellor.

At the heart of the Prosperity 2030 plan is a national contributions levy that would consolidate six existing taxes: income tax, employee and self-employed national insurance, dividend tax, inheritance tax, and capital gains tax. The levy would apply a flat income definition, with rates ranging from 0% up to a 22% base rate and a 46% top rate, projected to generate £75 billion over five years.

The plan also envisages nine new universal services funded through this simplified system, aiming to transform the welfare state by providing support predominantly in kind rather than cash transfers.

Significantly, Prosperity 2030 proposes scrapping stamp duty and council tax in favor of a 1% annual property value tax. The report argues this change would address distortions in the current system, where owners of modest homes sometimes pay proportionally more than those with high-value properties. It includes a provision allowing taxpayers to defer payments to avoid being forced to sell their properties.

The proposal has already drawn criticism from some quarters. Sir James Cleverly, shadow secretary of state for housing, communities and local government, described the property tax element as a “garden tax … straight out of the Corbyn playbook,” signaling possible opposition within the Conservative Party and from some Labour members wary of revisiting policies linked to the previous leadership.

As Burnham moves closer to potentially assuming office, the debate over these tax reforms underscores the broader discussion about how to stimulate economic growth and reform public services in the coming years.