Labour MP Jonathan Hinder has called for fundamental reform of Britain's property taxes, arguing the Government should replace council tax and stamp duty with a proportional property tax rather than bolt a new "mansion tax" onto the existing system.
The Pendle and Clitheroe MP said:
"I don't want to see a 'mansion tax' bolted on to a broken system.
"Let's do PROPER tax reform, scrapping two stupid taxes and replacing them with a proportional property tax."
Hinder has previously made the case in Parliament for a more proportional approach to property taxation, arguing that the current mix of council tax and stamp duty is unfair and economically inefficient. In a Commons debate last year he said property taxes needed "radical reform" and backed a more proportional system.
Government already introducing high-value surcharge
His intervention comes as the Government moves ahead with a new High Value Council Tax Surcharge on residential properties in England worth £2 million or more.
The surcharge, announced in the 2025 Budget, is due to come into force in April 2028. Fewer than 1% of properties are expected to be affected, with the Government estimating it will eventually raise around £430 million a year for local government services.
Under the current design, owners of high-value properties would pay the surcharge on top of their existing council tax bill. Ministers argue the measure addresses a longstanding anomaly in which some multi-million-pound homes can face lower council tax bills than far cheaper properties elsewhere in England.
Hinder: replace council tax and stamp duty
Hinder's preferred model goes further. A proportional property tax would generally levy an annual percentage charge based on the current value of a home, replacing both council tax and stamp duty land tax.
The Fairer Share campaign, which advocates the model, has proposed a standard annual rate of 0.48% of property value, with higher rates for second homes and properties owned by non-residents.
Hinder has previously said such a system could shift more of the burden towards wealthier households while reducing bills for many ordinary families. He said earlier this year:
"Stamp duty and council tax are unpopular and broken, and there's a credible alternative ready to go."
He described proportional property tax as "an idea whose time has come".
Council tax still based on 1991 values
A central criticism of council tax is that properties in England are still placed into bands based on their 1991 valuations, so three decades of house-price change have not been reflected consistently in bills.
The Government itself has highlighted disparities, pointing out that a £10 million property in Mayfair can pay less council tax than a Band D home in places such as Darlington or Blackpool.
No commitment to full replacement
Despite growing interest in reform, the Government has not committed to replacing council tax and stamp duty with a proportional property tax. The Treasury has previously said the two taxes raise more than £50 billion a year and that any major overhaul would have to weigh the consequences for revenues and council finances.
For now, ministers are pursuing the more limited high-value surcharge while leaving the underlying council tax system intact.
Hinder argues that approach does not go far enough — and that the choice is between continuing to patch an outdated system or replacing council tax and stamp duty with a simpler tax linked to the value of people's property.
