Burnham is proposing to reduce the "mansion tax" threshold

According to reports, Andy Burnham could reduce the threshold for the "mansion tax" from "pound 2 million" to "pound 15 million" in order to raise more money for the Treasury

If Burnham is elected as the next leader of the Labour Party, there are rumoured plans to force tens of thousands more households to pay the mansion tax.

According to reports in The Mail on Sunday, the prime minister-in-waiting may reduce the threshold at which individuals begin to pay the High Value Council Tax Surcharge from two million to one and a half million.

According to calculations by think tank Tax Policy Associates, if the levy were lowered to the lower amount, an estimated 150,000 more households might be forced to pay the surcharge.

Chancellor Rachel Reeves first proposed the "mansion tax" in her 2025 Autumn Budget. It is scheduled to take effect in April 2028.

Watch the entire video here: Depending on the value of their home, those with properties valued at more than £2 million will currently have to pay between £2,500 and £7,500 annually. In 2029-2030, it is anticipated to generate 430 million.

However, if Burnham wins the Labour leadership race, he will have to figure out how to pay for the Defence Investment Plan's (DIP) multibillion-pound deficit and an ever-expanding welfare budget.

One way to achieve this, in addition to possibly doing away with the triple lock pension system, is to lower the entry level at which households pay the mansion tax.

Andy Burnham's office was contacted by BFIA for comment.

How is the mansion tax going to operate?

The High Value Council Tax Surcharge will be applicable to homes in England valued at £2 million or more starting in April 2028.

A valuation exercise will be conducted by HMRC's Valuation Office (VO) to determine which homes will be subject to the surcharge.

A fee of £2,500 will be applied to homes worth £2 million or more but under £2.5 million.

Properties valued at £2.5 million or more but under £3.5 million must pay £3,500. The required payment is £5,000 for homes valued between £3.5 million and £5 million. There is a 7,500 surcharge on properties valued at £5 million or more.

These fees are scheduled to rise annually in accordance with the Consumer Price Index (CPI), which is a gauge of inflation. Every five years, the VO will conduct reevaluations.

According to calculations made by Tax Policy Associates, a lower threshold of 1.5 million on the levy would nearly double the number of households paying it, though it is unclear how this would be implemented.

The think tank estimates that 243,000 householdsup from 127,000 under a 2 million entry-level thresholdwould have to pay at least something.

And what else is Andy Burnham thinking about?

Burnham stated in a significant speech on June 29 that he planned to change business rates in order to help pubs and high streets, which have suffered in recent years.

A trade association for the industry, the British Beer and Pub Association, claims that in just the first three months of 2026, 161 pubs in Britain closed. Six hospitality venues are expected to close every day in 2026, according to UK Hospitality, a trade association for the hospitality industry.

If Burnham were to become the UK's next prime minister, there have been rumors about what else he might propose.

According to reports, the Makerfield MP might consider reforming the Capital Gains Tax (CGT) by aligning the rate paid with income tax. Currently, higher and additional-rate taxpayers pay 24% of the CGT, while basic-rate taxpayers pay 18%.

Additionally, Burnham could substitute a land value taxan annual tax determined only by the land's actual valuefor stamp duty.