Economist Tim Leunig: Time to scrap council tax and stamp duty

Council tax and stamp duty are "unfair and unpopular" taxes that should be abolished, according to economist Tim Leunig. Leunig, who advised cabinet ministers including Rishi Sunak, proposes replacing these taxes with proportional levies. The existing system is criticised for its unfairness, with a terraced house in Burnley paying more than a mansion in Kensington. In a paper for the centre-right Onward thinktank, Leunig suggests replacing council tax with a levy on home values up to £500,000, and introducing a national annual levy on homes worth more than £500,000 to replace stamp duty revenue. This would ensure that poorer areas pay for local services, while wealthier areas contribute more. Leunig argues that the current tax system undermines economic growth and makes it difficult and expensive to move house. 

The Observer (18/08/2024)