Sir Andy Burnham, as the new prime minister, is considering an overhaul of property taxation in the UK to help fund social care reform and increased defence spending. Options being explored include scrapping stamp duty and replacing council tax with a single annual property or land levy, an idea that has long appealed to economists and politicians who see residential property, the UK's largest store of wealth, as an under-taxed asset.

Council tax, based on 1991 valuations, is widely regarded as outdated and regressive, hitting lower-value homes proportionally harder, while stamp duty is progressive but volatile, drying up during downturns. The OBR estimates council tax will raise £51bn in 2025-26, alongside £34bn from business rates and £17bn from property transaction taxes. UK residents held around £5.5tn in property wealth (after mortgages) in 2022, and reformers argue a flat-rate levy based on updated valuations, potentially aided by AI, would generate steadier revenue and favour poorer areas where high council tax bills currently deter people from moving.