Business Groups Urge Andy Burnham to Overhaul UK Tax System

Incoming Prime Minister Andy Burnham is facing simultaneous demands from business leaders and policy experts to implement sweeping economic reforms to stimulate growth. The Real Rates Reform Alliance, representing 28,000 firms, has proposed a hybrid business rates system that would tax online sales at 2% to fund a 37% tax cut for physical high street stores. This follows Burnham's own pledges to raise property taxes on large warehouses and increase small business relief thresholds from £12,000 to £18,000.

Parallel pressures from the Confederation of British Industry and Energy UK urge Burnham to prioritize slashing corporate energy costs on his first day in office. The groups argue that UK electricity prices are 45% above the G7 median, claiming that reforms could unlock £130 billion in economic activity by 2050. However, the campaign group Uplift has countered these requests, advising the government to prioritize renewable energy investment over fossil fuel interests.

Adding to these demands, the think tank Policy Exchange has called for the total abolition of national insurance, stamp duty, inheritance tax, and the 45p top income tax rate. This proposal suggests shrinking the state to 33% of GDP to avoid fiscal instability. Former Chancellor Sajid Javid endorsed the report, noting that the current tax burden has reached a 70-year high. While Burnham has indicated some flexibility on rebalancing business rates, he has not committed to the broader tax abolitions suggested by Policy Exchange.