“Property tax in the UK is a mess. A particular problem for getting more housebuilding is that undeveloped land goes untaxed, which discourages housebuilding,” he said.
However, economists warn that reforms risk pushing down house prices and damaging consumer confidence.
“Further reforms, such as revaluing council tax bands – a policy Burnham has previously supported – could weigh on house price growth at the top end of the market, particularly in prime central London,” Capital Economics warned in a recent note.
Nigel Lawson’s 1980s system
Several leading candidates for Chancellor have also expressed support for higher capital gains taxes (CGT).
Streeting, who has thrown his support behind Burnham, has proposed aligning CGT rates with income tax rates in what he describes as a “wealth tax that works”.
Such a move could see investors and second-home owners paying tax rates of up to 45pc on gains, compared with the current top CGT rate of 24pc.
Streeting has argued that the UK should return to the system introduced by Nigel Lawson in the 1980s.
“We should return to the system that Nigel Lawson created by equalising capital gains and income tax rates while being more generous to genuine investment,” he said.
Haigh has taken a similar position, arguing that CGT should be brought closer to income tax rates, because the current system encourages individuals to convert income into more lightly taxed capital gains.
McVitie’s Labour Growth Group suggests some proceeds could fund cuts to National Insurance contributions. However, raising CGT presents challenges.
Unlike income, capital gains are taxed only when assets are sold, meaning investors can simply choose not to sell.
HMRC’s own estimates suggest that a 10 percentage point increase in CGT rates for higher-rate taxpayers could ultimately reduce revenues by more than £3.5bn as investors alter their behaviour.
This behavioural effect was one reason that Jeremy Hunt, who served as chancellor in Rishi Sunak’s government, reduced the top rate of CGT on residential property from 28pc to 24pc, which was actually deemed to raise revenues.
‘Rushing Britain to net zero’
The future of the North Sea could become one of the biggest dividing lines in a Burnham administration.
Miliband has consistently opposed new oil and gas exploration licences, although he has acknowledged that existing production will continue during the energy transition.
His stance has drawn criticism from business leaders and trade union figures alike.
Lord Rose, the former chairman of Asda, has called Miliband a “lunatic” over the proposals.
Sharon Graham, Unite’s general secretary, has also criticised the Energy Secretary for “rushing Britain to net zero with almost no thought for jobs, skills and national security”.
