There’s been a rapid and very strong show of support for a radical property idea backed by Prime Minister Andy Burnham.

A petition calling for a supposedly-fairer replacement of council tax and stamp duty has won huge support with over 100,000 signatures.

It’s now to be debated in Parliament after the summer recess. 

The petitioners want the existing taxes replaced with a so-called Proportional Property Tax which would see owners pay an annual levy of 0.48% of a home’s value.

This would equate to £1,4440 a year on a £300,000 home.

The petition reads: “We call on the government to commission a full, independent review of Council Tax and Stamp Duty to deliver the fundamental, evidence-based reform the UK’s housing market urgently needs.

“Council tax arrears have risen to £8.3 billion, with more than two million households struggling to keep up. 

“We believe a tax based on 1990s property values no longer reflects today’s homes or people’s ability to pay — and it fails to provide a stable way to fund essential local services.

“We believe Stamp Duty remains a narrow, one-off tax that distorts the housing market and traps families in unsuitable homes.”

Advocates claim that 77% of households would benefit from such a tax, and those paying more would see increases capped until they sell.

Burnham has previously spoken supportively of this concept, although the administration led by Sir Keir Starmer was keen to stick to the status quo.

Some months ago the Starmer-led government commented: “Council Tax and Stamp Duty are important government revenue sources, raising £60 billion a year to fund essential services. Government is committed to a fair system and supporting home ownership.

“Council tax is a tax on properties, where property bands are used as a proxy for relative ability to pay. For 2026-27, the system accounts for 53% of the local government core spending power, which local authorities need in order to provide local services. Councils are directly accountable to their local communities for how they raise and spend council tax.

“In England, homes are put into one of eight valuation bands based on their capital value in April 1991. The purpose of banding is to arrive at relative values of homes rather than assessing the actual value of each one. 

“The valuation of all properties in England is carried out by the Valuation Office Agency (VOA) who undertake this role independently of ministers. While properties are banded by VOA, the local authority is responsible for determining the level of council tax in their area. This reflects the service needs of each area having taken account of the council’s other sources of income, as well as historic council tax decisions taken by the local authority over several decades.

“Council tax is a settled tax which is understood by taxpayers, and which has a high collection rate (95.9% in 2024-25). 

“As such, the tax base remains broadly stable and the revenues are relatively predictable which means that local authorities have a degree of certainty in their financial planning. To ensure fairness, the council tax system includes a range of reliefs and exemptions, with 34.3% of all dwellings subject to a discount. These range from a single person discount and student discount to a severely mentally impaired disregard. 

“The government requires local authorities to provide a council tax reduction scheme to support low-income households, with 3.6 million claimants in England. Support for pension-age households is centrally prescribed by the government and working-age support is designed locally, reflecting the needs and circumstances of local communities. Local authorities also have discretionary powers to offer further support to those they feel are in hardship or financial difficulties.”

The government went on to say: “Owners of the most valuable homes in England pay proportionately far less tax on their properties compared to those in lower value homes. That is why at the [2025] Autumn Budget, the Chancellor [then Rachel Reeves] set out a new High Value Council Tax Surcharge that will be introduced in 2028/29. 

“This will apply a £2,500 surcharge for properties worth over £2m and a £7,500 surcharge for properties worth over £5m to be collected alongside council tax. Revenue will be used to support funding for local government services, with further detail set to be set out at the next Spending Review. Current council tax bands will not be affected and will still apply.”