Andy Burnham has unveiled plans to introduce a land value tax if he becomes Prime Minister, arguing British land is currently under‑taxed.
Launching his campaign in the Makerfield by‑election, Mr Burnham told The Telegraph: “I think land is under‑taxed.”
He pointed to large areas of unused land across Greater Manchester, saying there is currently no meaningful charge on plots left idle without development.
According to the Office for National Statistics (ONS), UK land was valued at £7.1trillion in 2024.
A levy of 0.5 per cent on that total could raise around £35.5billion a year for the Treasury, while a one per cent charge could generate roughly £71billion.
Mr Burnham has previously backed a land value tax, including during his unsuccessful 2010 Labour leadership bid, when he proposed it as a way to abolish stamp duty, which he described as a “tax on the aspirations of young people”.
Unlike traditional property taxes, a land value tax is charged on the unimproved value of land rather than buildings constructed on it.
Supporters argue it encourages landowners to develop unused plots or sell them to those who will.
Andy Burnham backs land value tax and inheritance tax reform ahead of potential Labour leadership bid
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Mr Burnham did not say whether the levy would replace existing property taxes or operate alongside them.
Tax expert Dan Neidle cautioned against presenting a land value tax as a simple way to target wealthy landowners. “The vast majority of people you are going to tax are normal people,” he said.
“We already tax land more than any other OECD country.”
Mr Neidle stated the policy would only work effectively if used to offset other taxes, suggesting revenue could be used to abolish stamp duty and potentially council tax and business rates.
The intervention comes as fellow Labour figure Wes Streeting has proposed aligning capital gains tax rates with income tax rates, which he said could raise £12billion a year.
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Andy Burnham has also proposed replacing inheritance tax with a social care levy to ease pressure on local councils
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“I know there’s a great resentment about inheritance tax, so actually just, you know, take that away, perhaps, and look at a care levy,” he said, arguing it could give people “peace of mind while they’re alive”.
The idea mirrors proposals he made as health secretary under Gordon Brown between 2009 and 2010, when he advocated a flat 10 per cent estate tax to fund universal free social care.
The Conservatives branded it a “death tax” during the 2010 General Election, releasing campaign material featuring a tombstone marked “RIP off” — a message that resonated strongly with older voters.
Mr Burnham also backed reforms to council tax, which he described as “highly regressive”, and called for cuts to business rates for hospitality venues funded through expanded tourist levies.
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