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Labour’s Makerfield by-election candidate and Greater Manchester’s mayor Andy Burnham has pledged to introduce a 20% cut in business rates for pubs, clubs, and live music venues next year.
The policy initiative, launched during his campaign for the Makerfield by-election, marks a direct challenge to the tax strategies introduced by prime minister Keir Starmer and chancellor Rachel Reeves.
In an interview with the BBC’s Newsnight, the candidate stated that “Labour have got it wrong on small businesses,” and that the current system undervalues small businesses and high street venues.
The proposed cuts would be funded by placing higher levies on large online distribution warehouses and long-term vacant commercial properties.
Burnham also noted he would consider revisiting recent increases to employers’ national insurance contributions in passing.
The strategy goes further than current Treasury plans for a 15% reduction and follows warnings from trade body UKHospitality regarding potential sector job losses.
Chief executive of UKHospitality Allen Simpson welcomed the acknowledgement that the current business rates system is broken and requires reform.
Burnham said: “I am willing to be honest about where we have fallen short and say that my party has got this wrong in government. They have undervalued the contribution these businesses make to our livelihoods and our communities.
“Our high streets matter to me because they matter to the people who live here. I want to make sure that these family-owned businesses, as the heart and soul of this country, are protected and given the chance to thrive.”
Simpson added: “It’s right to recognise that high street hospitality businesses are the heart and soul of Britain and, crucially, that the system is broken and in need of reform. The challenges facing local businesses are universal and affect all types of venue, from pubs and restaurants to cafés and hotels.
“An effective high street strategy needs to deliver a hospitality-wide solution to deliver for all businesses, high streets, towns, cities and communities. To reverse the trend of closures and lost jobs into openings and new jobs, that strategy needs to include a plan for delivering lower business rates and a 10% rate of VAT for hospitality.
He concluded: “We continue to have discussions with the government about business rates bills for the next two years of this current cycle and continue to have positive conversations with all major parties about business rates across England, Scotland and Wales.”
