Andy Burnham has confirmed that Stamp Duty will remain unchanged in the upcoming Budget, dismissing recent speculation that the property tax could be abolished.
Reports over the weekend suggested that the government was considering scrapping Stamp Duty, but Burnham rejected those claims, stating that “that won’t happen in the next Budget.”
According to Sky News, the Prime Minister was keen to avoid uncertainty in the housing market after previous discussions around Stamp Duty reforms created hesitation among buyers and sellers. Burnham reportedly believes that announcing potential changes without a clear decision could slow activity in the property market.
Previous Support for Property Tax Reform
Although Stamp Duty changes are not expected in the upcoming Budget, Burnham has previously shown support for reforming the way property taxes work.
He was reportedly interested in proposals from campaign group Fairer Share, which has called for Stamp Duty and Council Tax to be replaced with a Proportional Property Tax.
Under the proposed system, homeowners would pay an annual charge based on the value of their property, set at 0.48%. This would mean a homeowner with a £300,000 property would pay around £1,440 each year.
Fairer Share claims that around 77% of households would be better off under this approach, with households facing higher bills protected through gradual increases until they sell their property.
However, the organisation has clarified that reports suggesting the government was actively preparing to remove Stamp Duty or Council Tax were inaccurate. It said that decisions on taxation remain the responsibility of the Chancellor and would be announced during official fiscal events.
Political Debate Continues
The decision to keep Stamp Duty in place has already attracted criticism from opposition figures. Conservative MP Sir James Cleverly argued that the tax creates barriers for buyers and prevents people from moving home.
He said Stamp Duty acts as a “tax on aspiration”, claiming it discourages first-time buyers and reduces movement within the housing market.
The debate comes after Zoopla highlighted concerns that Stamp Duty is becoming a significant barrier for some homeowners looking to move.
Richard Donnell, Executive Director at Zoopla, said Stamp Duty has become a major additional cost for many buyers, particularly in southern England where bills can reach tens of thousands of pounds.
He explained that around six in ten property purchases are made by existing homeowners, meaning high moving costs can prevent people from making changes to their living arrangements.
“When the cost of moving becomes a meaningful barrier, some of those moves simply do not happen,” Donnell said.
Impact on the Housing Market
While Burnham’s decision provides clarity ahead of the Budget, questions remain over whether Stamp Duty reform will return as a future policy discussion.
Supporters of reform argue that reducing or replacing Stamp Duty could encourage more housing transactions and improve market activity. However, others warn that major tax changes need careful planning to avoid creating uncertainty for buyers, sellers and the wider property sector.
For now, homeowners and property investors should expect Stamp Duty to remain part of the current system, with any future reforms likely to depend on wider government tax and housing priorities.
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