New prime minister Andy Burnham has ruled out making changes to stamp duty in this year’s Budget, dismissing speculation that the government could reform or abolish the property tax.

Asked whether ministers were considering changes, Burnham said: “Yes, I can say that quite clearly. That won’t be happening.”

The comments will disappoint many estate agents and housing market commentators, who have long argued that stamp duty discourages homeowners from moving, downsizing or relocating for work, reducing the efficient use of the country’s housing stock.

Stamp duty generated £16.6bn for the Treasury in the last financial year, making it a significant source of government revenue.

Burnham said the government was not considering tax reforms “on that scale” and insisted its priority was to make the tax system fairer.

“It’s just not the case that we are bringing forward plans on that scale at this moment in time,” he said. “What we’re trying to do though is to make taxation fairer.”

The prime minister has previously indicated that some taxes may need to increase as the government faces growing spending pressures, including an ageing population, defence spending and wider investment commitments.

However, Labour’s 2024 general election manifesto pledged not to increase the rates of income tax, National Insurance or VAT, which together account for the majority of UK tax receipts.