Burnham pledges business rate cuts for pubs, cafes and other small businesses

Greater Manchester mayor’s proposals amount to a notable criticism of Keir Starmer’s policy in the area

Andy Burnham has proposed a 20% cut to business rates for pubs with many smaller, family-run enterprises taken out of paying the levy altogether, in his first major policy initiative during the Makerfield byelection.

Burnham’s plans amount to a notable criticism of Keir Starmer’s policy in the area. The Greater Manchester mayor said: “Labour have got it wrong on small businesses.”

He has been wary of discussing concrete policy decisions, in part because of a desire to focus on the current contest, but also because he has said he would not want to go beyond what Labour promised in its election manifesto.

But in a policy statement released by his team on Friday, Burnham acknowledged criticism of the government’s policies towards small businesses, and particularly pubs, pledging help on business rates.

Under his plan, pubs, clubs and music venues would receive a 20% cut next year, while smaller, independent hospitality, leisure and retail companies would have the threshold for paying business rates raised for the first time since 2017, taking many outside the scope of the tax. A taper system would avoid a payments cliff edge.

The cuts would be paid for, according to the proposal, by higher levies on giant warehouses operated by online firms such as Amazon, and targeting the owners of empty high street properties.

“I am willing to be honest about where we have fallen short and say that my party has got this wrong in government,” Burnham said in the statement. “They have undervalued the contribution these businesses make to our livelihoods and our communities.