Andy Burnham to ‘go further’ in business rates reform
Andy Burnham said he would “go further” in introducing business rates reform after already announcing that property taxes would be cut for pubs in return for higher levies on vape shops.
The Prime Minister said he will look to bring in more radical changes to the business rates system as part of efforts to ease the cost of living.
He told the BBC that he would announce further measures on business rates alongside his Chancellor John Healey at this year’s Budget. A retail-facing policy to offer pub and nightclub landlords a 20 per cent relief on rates was among the first things the new PM announced after scoring the keys to Number 10.
“I wouldn’t want to promise the earth and say all can be solved because I think people can see I’m facing a difficult financial outlook and I won’t bring forward things that I can’t fully fund,” Burnham said.
“We’ve made a move on pubs and business rates. I’m signalling going further on business rates. So there are things that we can do, and we’ll do everything that is possible for us to do. But I think everyone knows that I’m in a position with limited room for manoeuvre.”
Burnham’s comments suggest further business rates reform could be central to the new government’s first Budget, on 28 October, in an echo of changes introduced by the tax minister Dan Tomlinson last year.
Back in 2025, Healey’s predecessor Rachel Reeves announced that Covid reliefs and tax multiplier formulas would be revised.
The change led to widespread furore from pub landlords and airport owners, which saw tax burdens spike as a result of changes.
Reeves later rowed back on changes affecting pubs by offering a temporary 15 per cent discount on bills. Hotels, restaurants and cafes were also left feeling stung by the reforms.
Burnham urged to levy online sales
A campaign group for business rates reform said it is “hopeful” that Burnham would pave the way for “desperately-needed” changes at the Budget.
“Every business that invests in physical premises, from retailers and manufacturers to offices, hotels, theatres and leisure businesses, is being held back by an outdated property tax that penalises investment, suppresses growth and puts jobs at risk,” Ros Morgan, the chair of the Real Rates Reform Alliance, said.
“We are more than willing to offer our expertise and work with the government to achieve genuine and long-lasting change. The time is now.”
The group has argued that a small levy on online sales could help cut business rates and allow firms to invest in physical premises.