Andy Burnham urged to think about state-backed deposit loans as would-be patrons battle to get on housing ladder
PM-in-waiting Andy Burnham will this week crack on with vital planning ahead of his expected coronation as Prime Minister in two weeks on Monday
Andy Burnham has been urged to consider state-backed deposit loans(Image: Getty Images)
Andy Burnham has been urged to consider state-backed deposit loans of up to 40% to help young people get on the housing ladder as he rapidly prepares to enter No10.
The Makerfield MP will this week crack on with vital planning ahead of his expected coronation as Prime Minister in two weeks on Monday.
Influential think tank the Fabian Society has today presented Mr Burnham with costed plans for deposit loans of up to 40%, which it said could help up to 136,000 families onto the property ladder over five years.
It argued that the plans would be “cost neutral”, costing the state £2.1bn a year, with first-time buyers paying back their loans quickly after an initial five-year interest-free period.
As he prepares to enter Downing Street, Mr Burnham faces a barrage of demands and views on the direction of his prospective premiership, with some wanting him to radically shift to the left.
Many MPs are vying for Cabinet positions, including those close to Mr Burnham and those who want to keep their jobs from Starmer’s top team. Who replaces Rachel Reeves as Chancellor has already triggered much debate, with some on the soft left favouring Energy Secretary Ed Miliband and others wanting current Home Secretary Shabana Mahmood.
Mr Burnham has confirmed he will deliver Labour’s 2024 manifesto, with his team rapidly trying to work through their policy platform to support it over the next two weeks. He is thought to be looking at deep-rooted reforms to the broken council tax system and has already outlined plans for the biggest council housing programme since the post-war era, as well as a No10 North to shift power away from Whitehall.
The Fabian Society’s proposal appears to align with Mr Burnham’s thinking. Over the weekend, it was reported that the ex-Greater Manchester mayor is looking at giving billions of pounds in tax relief to young people so they can save for a house deposit.
Youngsters would be given an exemption from paying income tax for the first three years of full-time employment, giving them a chance to build up cash in the bank for a housing deposit, The Independent reported.
Among its other recommendations, the Fabian Society called for key workers to be offered the opportunity to buy a home that is vacant or in need of renovation for £1, helping them get on the property ladder. And it called for improvements to shared ownership by capping rent increases.
Mr Burnham will this week continue “access talks” with the government to smooth over a transition of PM. They kicked off last week with a focus on national security, devolution and the economy and were supported by close ally and former Transport Secretary Louise Haigh and his future No10 chief-of-staff James Purnell.
In his first media interview, Keir Starmer’s chief of staff Morgan McSweeney last week admitted Labour failed to properly prepare for Government. He said early mistakes – down to a lack of planning – including the decision to cut winter fuel payments for pensioners, “defined the government in a way that really did us a lot of damage”.
The Labour strategist told the BBC’s Political Thinking podcast: “We didn’t prepare enough for what kind of world we were going to. We are now in a very different era than when Labour was last in government.”
Deputy Labour Leader Lucy Powell – a close Burnham ally – said a “very powerful reorganisation of government” is already being planned with the announcement of a No10 North.
She added: “This is this is about taking power from Whitehall to distribute it around the country, and this will be a very powerful reorganisation of government in order to deliver that lifeblood back into every community and every postcode across the country.”
Ben Cooper, Head of the Fabian Housing Centre, said: “Homeownership remains a key ambition of the British people, but the dream is being realised later in life — if at all. Helping first-time buyers to own a good quality home should be a top priority for the next Prime Minister.
“Our proposal would help an extra 136,000 households own their home, and cut the costs of a mortgage by hundreds of pounds a month. People who work hard and pay their rent on time will finally be able to get onto the property ladder once again.”
