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Rayner and Burnham Escalate Pressure on Starmer Over Stalled Ground Rent Cap

Treasury worries over investor reaction have stalled the leasehold bill, putting the manifesto cap in limbo.

Overview

  • Angela Rayner urged the government to keep its pledge to curb ground rents, warning in a Guardian article that failing to act would see voters lose faith.
  • Greater Manchester mayor Andy Burnham criticized the government’s economic approach, saying the country is stuck in a low‑growth rut and too beholden to bond markets.
  • Labour MP Barry Gardiner said reversing the cap would be a betrayal of the manifesto and warned of a potential showdown involving more than 100 backbenchers.
  • Ministers have yet to publish the Leasehold and Commonhold Reform Bill after a reported split between Chancellor Rachel Reeves, concerned about pension‑fund and investor fallout, and Housing Secretary Steve Reed.
  • Investors and pension funds have lobbied against a cap, though some Labour figures argue residential ground rents are a small share of pension assets, with reports also noting a working proposal to limit charges to about £250 a year for existing leaseholders.