Andy Burnham’s major policy speech yesterday (Monday, June 29, 2026) at the People’s History Museum in Manchester marked a massive moment for his leadership bid. While the speech heavily championed a philosophy he calls “Manchesterism”—focusing on a sweeping redistribution of power via a new “No. 10 North” and business rates reform—it actually builds on his long-standing, separate platform advocating for a Land Value Tax (LVT).
During his recent return campaign to Westminster, Burnham re-emphasized his belief that “land is under-taxed,” arguing that LVT is a critical tool for rewiring the UK’s economic regional disparities. LVT and his broader fiscal localization strategy are designed to fundamentally supercharge devolution in three main ways:
1. Breaking the “Whitehall Cap” with Financial Autonomy
Currently, local mayors and councils are heavily reliant on central government grants or highly regressive, outdated tax systems like Council Tax (which is still based on 1991 property valuations). Burnham has repeatedly called Council Tax “highly regressive” because it means modest family homes in places like Blackpool can end up facing comparable tax burdens to multimillion-pound properties in London.
The devolution fix would be by transitioning towards an LVT or Proportional Property Tax, local authorities would capture revenue directly from the value of the land itself. Devolving this revenue generation gives regions stable, independent funding, meaning mayors no longer have to “beg” Whitehall for funding to fix local infrastructure.
2. Disincentivizing “Land Banking” to Spur Local Regeneration
In yesterday’s speech, Burnham heavily prioritized lifting Britain out of a “housing trap” by accelerating council housebuilding and revitalizing town centers.
The devolution fix, LVT offers is it forces a shift in how land is treated. Under standard property taxes, if a developer improves a site, their tax goes up; if they leave a plot vacant or a high-street storefront empty, they are often penalized very little. An LVT taxes the unimproved value of the land regardless of what is built on it. Burnham argues this provides a “very productive form of taxation” because speculative landlords or developers can no longer hoarder land without penalty. It forces development, allowing local combined authorities to step in and transform brownfield sites into affordable homes.
3. Rebalancing Wealth Away from London
Devolution only works if local economies have the baseline wealth to sustain themselves. Because land values are exponentially higher in London and the South East, an LVT inherently shifts the national tax burden onto high-value areas while giving middle-and-lower-income postcodes a massive financial breather. Freeing up local household income across the North, Midlands, and coastal towns creates what Burnham calls “good growth in every postcode,” generating localized wealth that stays within the regional economy rather than draining back into the capital.
What Burnham Focused on Yesterday
While LVT remains a cornerstone of his broader tax philosophy, his speech yesterday put forward immediate, practical steps toward fiscal devolution that echo the same goals as a
Business Rates overhaul. Slashing business rates by 20% for local hospitality venues and lifting small independent retailers out of the tax entirely, funded by a higher levy on massive online distribution warehouses (like Amazon). And a No. 10 North, establishing a Manchester-based central operation to coordinate cross-UK regional growth, shifting civil service power permanently out of London.