Prime Minister Andy Burnham is reportedly open to discussing council tax reform, according to several Labour MPs advocating for changes ahead of this year’s Budget. The move follows mounting pressure from Labour representatives in northern England, who argue that the current council tax system disproportionately affects working-class households in their constituencies.

A recent survey conducted by JL Partners, commissioned by the campaign group Fairer Share, found that nearly two-thirds of voters consider the council tax system unfair, with more than half expressing concern about their ability to afford this year’s payments. Fairer Share has called for a shift to a proportional property tax based on home value, asserting that under such a system, three-quarters of households would save an average of approximately £550 annually. Their proposal includes a cap on any tax increase at £1,200.

Although Burnham has previously stated he does not intend to abolish council tax immediately, some Labour MPs see an opportunity to outline a framework for reform in the October 28 Budget. To build support, a group of Labour backbenchers, operating under the name Labour MPs for Fairer Council Tax, has been established. Their objective is to persuade both Burnham and Chancellor John Healey to replace council tax and stamp duty with an annual property tax tied more closely to property values.

Labour MPs from the north, including Afzal Khan of Manchester Rusholme, have voiced support for reform, emphasizing its alignment with government efforts to address the cost-of-living crisis. Jonathan Brash, MP for Hartlepool, described council tax as one of the “most regressive taxes” in the country, underscoring the need for a more equitable approach.

The discussions on council tax reform emerge amid ongoing debates about social and economic policy priorities, with the Prime Minister’s youth unemployment review expected to be published in early autumn. The review’s findings could influence broader government strategies addressing economic inequalities and public finance.