Andy Burnham has long advocated for reforms to property taxation, including the potential abolition of stamp duty and the introduction of a land value tax (LVT). Stamp duty, a tax levied on property transactions over a certain threshold in England and Northern Ireland, has been criticized by various economists. The Institute for Fiscal Studies (IFS) describes it as "one of the most economically damaging taxes," primarily because it can discourage property sales.
Stuart Adam from the IFS explains that stamp duty "penalises transactions," meaning it discourages people from buying and selling homes. He suggests that a land value tax, which is an annual tax on the market rental value of land, would be a more efficient way to raise revenue. Adam notes that land is a fixed asset, easily identifiable, and cannot be moved, thus avoiding the disincentive effects associated with taxes on transactions or improvements. He argues that an LVT "would allow for the abolition of stamp duty" and could help alleviate pressure on the housing market by encouraging more efficient use of existing housing stock, potentially reducing the need for new construction.
Burnham himself has been a vocal critic of stamp duty, previously stating in 2010 that an LVT would "allow for the abolition of stamp duty - a tax on the aspirations of young people to put down roots and get on in life." In the years since, he has consistently called for property tax reforms. However, the transition from advocating for such reforms to implementing them in a governmental capacity, with its associated political and practical realities, presents a different challenge. While economists largely agree on the negative economic impact of stamp duty, the feasibility and specific mechanisms of alternative tax systems like LVT remain subjects of detailed policy consideration.