Prime Minister Andy Burnham rules out stamp duty reform in next Budget: Why is it a blow to UK homebuyers? | Today’s news

New British Prime Minister Andy Burnham has ruled out any changes to stamp duty or house sales tax in the next budget expected later this year, according to Reuters.

Asked whether the government would change or abolish stamp duty in the next budget, Burnham said on Monday: “Yes, I can say that quite clearly. It’s not going to happen.”

What is stamp duty unpopular?

Stamp duty on land and property earned the government £16.6 billion in the past year. This may be seen as beneficial from the government’s perspective, but it is largely unpopular as it discourages people from moving for work or downsizing, and various economists have said it causes the housing stock to be misused.

“It’s not like we’re putting forward plans on that scale at the moment… But what we’re trying to do is make taxation fairer,” the British prime minister noted.

Burnham has also previously said he may ask people to pay “a bit more” in taxes as the UK faces major spending pressures amid an aging population that requires government spending, the need to rebuild its armed forces and other investment targets. However, the ruling Labor Party’s 2024 election platform ruled out any increase in income tax, national insurance or VAT rates, which together account for two-thirds of total tax revenue for the government.

Burnham took power on 20 July following the resignation of former Prime Minister Keir Starmer following Labour’s poor performance in local elections in early May. Burnham, a former mayor of Manchester, said he would challenge him for the job as Starmer’s popularity had fallen to an average net approval of around 46% by November 2025. This was further cemented when Labor lost control of 35 councils and almost 1,500 councilors in the 2026 local elections. Burnham took over largely uncontested, having been nominated by over 94% of Labor MPs.