Mr Burnham’s comments came after Wes Streeting, a rival leadership contender, attempted to win over the soft-Left faction of the party by proposing to raise the rate of capital gains tax in line with income tax if he became prime minister.
Mr Streeting, who is perceived to be on the Right of the party, said his policy could raise £12bn a year and was a “wealth tax that works”.
Dan Neidle, founder of Tax Policy Associates, warned Mr Burnham against using a land value tax as a “political trick to raise a bit of money from the rich”.
He told The Telegraph: “The vast majority of people you are going to tax are normal people. We already tax land more than any other OECD country. If Mr Burnham thinks a land value tax is simply a clever way of raising revenue then he is very mistaken. That is not what a land value tax should be.”
Mr Neidle said the policy would only be successful if it were used as a tool to cut other taxes. “A land value tax could raise the sort of figure that would allow you to abolish stamp duty and with a bit of luck council tax and business rates as well,” he added.
On Friday, Mr Burnham also said he was keen to reform “highly regressive” council tax and supported a cut in business rates for hospitality firms that would be funded by the further expansion of visitor levies for tourists.
Care levy
Mr Burnham also wants to replace inheritance tax with a social care levy that would lift the financial burden from local authorities.
He said: “I know there’s a great resentment about inheritance tax, so actually just, you know, take that away, perhaps, and look at a care levy. It’s not about asking people to pay more. It’s just people paying in the most unfair way possible at this moment in time and I think there’s a much better way of doing it.
“[It would mean] people just have peace of mind while they’re alive, because they get the care that they need, and then it will be dealt with in a much better way.”
When he was health secretary between 2009 and 2010, Mr Burnham suggested applying a flat 10 per cent tax on all estates after the owner died to fund universal free social care in England. This levy would have been on top of any inheritance tax due.
Mr Burnham gambled that the compulsory scheme would be popular with voters because it would replace a system where many pensioners are forced to sell their family home to fund nursing home bills.
However, the proposal was seized on by the Conservatives, who branded it a “death tax” in a series of attack adverts during the 2010 general election campaign.
Labour tried to backtrack on the plans but the adverts, which featured a tombstone emblazoned with the words “RIP off”, struck a chord with elderly voters and helped deliver David Cameron’s victory.
