Andy Burnham Proposes Business Rate Overhaul to Aid High Streets

Greater Manchester Mayor and Labour leadership frontrunner Andy Burnham has proposed a significant overhaul of business rates in England to provide relief for small high street firms, including pubs, cafes, and hairdressers. The plan would increase the 100% Small Business Rates Relief threshold from £12,000 to £18,000 and raise the tapered relief threshold from £15,000 to £21,000.

Analysis from the global tax firm Ryan indicates these reforms would remove more than 140,000 small premises from the rates net, costing the Exchequer approximately £880 million annually. To offset this cost, Burnham proposes increasing business rates on large warehouses and major out-of-town developments, specifically targeting online giants such as Amazon.

While Burnham asserts there is room for movement on tax within Labour's fiscal rules, the proposal has met with skepticism from tax specialists and business leaders. Ryan warned that raising the existing surtax on properties valued over £500,000 would impact a broad base of assets beyond warehouses, potentially harming sectors critical to economic growth. Additionally, the Confederation of British Industry argued that reform must deliver genuine relief rather than simply shuffling costs between different business sectors.