The newly appointed Prime Minister Andy Burnham faces a series of ambitious policy proposals from the think tank Compass, including capping petrol and diesel cars at 50mph and introducing a wealth tax that would double the price of all second homes, reports BritPanorama.
Compass has compiled a report outlining 100 policies designed for Burnham’s first 100 days in office, suggesting bold reforms in various sectors. The report, which was seen by a leading news outlet, is set to be published in three parts over the next three weeks, starting with topics like democratic reform, devolution, immigration, and international affairs this weekend.
Heading Compass is Neil Lawson, a co-founder of Mainstream Labour, a faction closely associated with Burnham. This group emerged in August 2025, coinciding with Burnham’s preparations to challenge the leadership of Sir Keir Starmer. Among the key recommendations in the policy outline are a two per cent wealth tax on every £1 million, support for assisted dying, the implementation of a proportional representation voting system before the next election, and barring House of Lords members from government roles.
Compass has also criticized the current immigration policies, arguing for a more positive stance. The report states, “Labour’s adoption of Reform/Conservative style immigration policy has been an abject failure, both morally and electorally,” and urges the adoption of a principled case for immigration.
In a comprehensive policy breakdown, several proposals emerge, including: support for assisted dying, introducing proportional representation, creating a pensions sacrifice OBE, and a ban on House of Lords members from serving in government. Other recommendations aim to address the housing crisis by limiting foreign ownership of residential properties, implementing a triple lock on rent increases, and introducing restrictions on land ownership.
As Britain endures its fifth heatwave of the summer, the report emphasizes the need for “emergency decarbonisation action” to confront the climate crisis. Compass highlights that urgent measures are necessary to achieve Net Zero by 2040, advocating for a ban on new gas boiler installations, mandatory solar or heat pump installations in new buildings, and the phase-out of petrol and diesel vehicles.
This initiative includes proposals for mandatory speed restrictions on fossil-fuelled cars. Given that domestic transport accounted for approximately 30 per cent of the UK’s territorial greenhouse gas emissions in 2024, primarily from road vehicles, the impact of such policies could be significant. Currently, about 28 million petrol and diesel cars, constituting about 85 per cent of all vehicles, would face drastic changes.
Richard Holden MP, shadow transport secretary for the Conservative Party, criticized the proposals as “absurd,” suggesting they represent a “war on motorists.” He further commented on the increasing trend of local authorities enforcing 20mph speed limits, underscoring a growing tension between environmental policy and public sentiment.
Maternity fund
Compass also proposes introducing a maternity fund modeled after Denmark’s DA Barsel fund. This initiative would require all companies to contribute a small fee per employee to a national fund, enabling reimbursement for maternity pay during parental leave. Such a fund aims to alleviate the financial burden on small businesses and foster the recruitment of female employees.
Two per cent wealth tax on every £1m
The policy document suggests a 2 per cent wealth tax on every £1 million. Advocates argue that this measure could address the pressing issues facing public services and indebted councils. The proposal underscores the economic disparities in the UK, with the wealth tax aimed at funding improvements for essential services.
Amid rising pressure, Burnham is faced with calls for introducing a wealth tax to support the nation’s defense and social care reform efforts. While the tax could serve as a means of financial recovery, concerns about its practicality and potential backlash from affected homeowners—particularly in London—are mounting.
Currently, an estimated 673,143 homes valued at £1 million or more exist across the UK, with approximately 340,620 situated in London. This makes the financial implications of such a tax substantial and potentially contentious.
Wealth tax to fund universal basic income
The second wealth tax proposed is more progressive, suggesting a tax of 5-10 per cent on wealth exceeding £10 million, with proceeds directed towards funding a universal basic income for vulnerable citizens. This controversial initiative aims to ensure financial security for creative professionals and food producers as part of an expanded welfare system.
While the Green Party has championed the idea of universal basic income, it remains contentious among Labour and Conservative parties. Concerns over costs and impacts on productivity have hindered broader acceptance of the proposal.
Burnham’s position on wealth taxation remains cautious, balancing the benefits of economic equity against possible repercussions for high-net-worth individuals.
100% tax on second homes
To combat the housing crisis, Compass suggests instituting a 100 per cent tax on the purchase price of second homes. This measure aims to tackle an increasingly unequal housing market by restricting second-home ownership, using generated revenue to fund state-managed affordable housing initiatives.
A review of council tax and stamp duty
Compass advocates for a comprehensive review of council tax and stamp duty within Burnham’s first 100 days. The goal is to replace these existing taxes with a fairer system based on current property values. Critics argue that the current structure is outdated and disproportionately burdens those with lower incomes.
Both taxes have faced scrutiny from economists as being regressive and disruptive to housing mobility. The call for reform aligns with a broader dialogue among experts who emphasize the need for tax policies rooted in fairness and contemporary economic realities.
With the political climate evolving rapidly, Burnham’s administration will need to navigate these proposals deftly, balancing ambition with the complex realities of implementation and public sentiment.
