Andy Burnham is considering a tax hike on the sale of shares and second homes as part of a radical new economic agenda, it has emerged.

As he prepares to enter Downing Street, Mr Burnham is reported to be looking at the rates of capital gains tax, which is levied on the profit made when selling an asset.

It is currently taxed at a maximum rate of 24 per cent - below the 40 per cent higher rate of income tax.

Mr Burnham's team is said to be mulling a capital gains tax raid to fund plans to axe most green levies from energy bills and to pay for them from general taxation instead.

Such a move could also be extended to water bills, public transport or social housing costs as the would-be prime minister looks to fulfil a pledge to 'make life more affordable for people'. 

Some in Mr Burnham's circle are also said to favour looking again at the tax rate levied on private landlords, according to The Times.

Increasing the rates of capital gains tax on the proceeds of share sales, second homes and other assets could be sold as a 'wealth tax' by Mr Burnham to Left-wing Labour MPs.

But there are fears about the former Greater Manchester mayor hammering taxpayers in the South as part of his promise to boost the North.

Labour MPs themselves are also said to be uneasy about what Mr Burnham - the so-called 'King of the North' - being PM might mean for the party's seats in the South.

One MP told the newspaper: 'We've got to have a winning coalition that spreads across the country. It's not just the Red Wall.

'It's seats we'd never won before from the Tories. It's metropolitan areas being snapped up by the Greens.' 

Another said: 'Andy has to be able to prove that his Northern focus won't cloud his ability to govern for all corners of the UK.

'What does he have to say about the rural poverty and lack of transport in Cornwall? 

'What about the chronic health issues which are endemic in many of our coastal communities - areas which are leaning towards Reform?'

Hollie Ridley, Labour's general secretary, is reported to be among those concerned about the focus on the North.

She is said to have told colleagues that Labour could lose many seats in the North and to neglect the South could be disastrous for the party.

Mr Burnham is almost certain to succeed Keir Starmer as PM and could enter Downing Street as soon as 17 July if he's the only leadership candidate to be nominated by Labour MPs.