Andy Burnham says Labour got it wrong as he unveils business rates shake up for pubs and small firms

Andy Burnham has called for major changes to business rates, including a 20 per cent cut for pubs and music venues and the removal of business rates for thousands of small family run high street firms.

The Labour candidate for Makerfield said the current system is failing small businesses and argued that online retail giants should contribute more towards supporting local high streets.

The proposals would see pubs, clubs and music venues receive an additional 20 per cent reduction in business rates from 2027. Burnham is also calling for the rates free threshold for small retail, hospitality and leisure businesses to be increased for the first time since 2017. The changes would mainly benefit independent shops, cafes, restaurants and other family run businesses operating from a single premises.

Speaking during a visit to The Holts Arms in Orrell, Burnham said Labour had not done enough to support smaller firms.

He said: "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.

"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."

Burnham said the proposals would be funded through measures aimed at increasing the contribution paid by large online retailers and tackling long term vacant properties.

Burnham speaking to journalists outside the Holts Cross after announcing the policy. Credit: Alfie Garner/Roch Valley Radio

He is calling for new powers to ensure warehouses used by major online businesses pay higher business rates, alongside action against landlords who leave shops empty for extended periods.

Burnham said support for pubs and other local businesses was about protecting community life. He said: "You lose pubs, you lose bars, restaurants, cafes, hairdressers on the high street, you lose a big part of community life and we just can't let that happen."

Addressing how larger online firms would contribute more, Burnham said the current system was uneven.

He said: "Tech businesses or online distribution businesses are paying on average 0.3 percent of their turnover on business rates for massive, massive facilities. Often high street businesses are much higher percentage."

Burnham said many businesses had told him they were struggling to survive and warned that urgent action was needed to prevent further decline on local high streets.

Listen to a clip of the interview

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