Andy Burnham

Andy Burnham is facing calls to introduce new council tax bands for England’s most expensive homes as part of wider reform of the local taxation system.

A report from the All-Party Parliamentary Group (APPG) on Local Government recommends creating additional bands to make council tax more progressive, ahead of a full revaluation based on updated property values.

Burnham, who is expected to succeed Sir Keir Starmer as Labour leader later this week, has previously argued that the current council tax system, which is based on 1991 property valuations in England, is outdated and in need of reform.

The APPG also called for the removal of council tax referendum limits, which generally require local authorities to hold a public vote if they want to increase council tax above 5% in a year.

John O’Connell, at the TaxPayers’ Alliance, said: “Letting councils hike tax as much as they like and slap new bands on family homes would be little more than a blank cheque for local bureaucrats.

“Scrapping referendum protections is an obvious cash grab that would let councils dodge accountability while hammering local taxpayers with even higher bills.”

The cross-party report, led by Labour MP Clive Betts and backed by Liberal Democrat Zoe Franklin and Conservative Simon Hoare, recommends introducing additional council tax bands for higher-value homes in England.

Additional bands already operate in Wales, while Scotland plans to introduce higher council tax charges for homes worth more than £1m from April 2028. The group said new bands in England would modernise the existing system rather than create a new tax.

MPs on the APPG said that creating additional council tax bands in England would “not constitute a new tax, but simply modernise an existing one”.

They added: “This change would make council tax more progressive, better reflect contemporary property values, and ensure that those with the greatest housing wealth contribute a fairer share towards local services.”

Burnham has previously indicated that he would favour a land tax to replace both council tax and stamp duty.