Andy Burnham, the Labour candidate in the Makerfield byelection, has announced plans to cut business rates for pubs and small family-run enterprises, while also considering a reduction in employers' national insurance contributions. The proposals mark a significant policy initiative for Burnham and a notable critique of Keir Starmer's approach to small businesses.
In an interview with BBC's Newsnight, Burnham said he wanted to reconsider the increase in employers' NICs introduced in the 2024 budget, a measure criticised by some within Labour, including former health secretary Wes Streeting. "I have said that I thought the weight of the burden on employers' national insurance wasn't the right decision. However, it was the decision," Burnham stated.
Under Burnham's plan, pubs, clubs, and music venues would receive a 20% cut in business rates next year. Smaller independent hospitality, leisure, and retail firms would see the threshold for paying business rates raised for the first time since 2017, potentially removing many from the tax entirely. A taper system would prevent a sudden payments cliff edge.
The cuts would be funded by higher levies on giant warehouses operated by online firms like Amazon and targeting owners of empty high street properties. Burnham acknowledged Labour had "got it wrong on small businesses," saying: "I am willing to be honest about where we have fallen short and say that my party has got this wrong in government."
The proposals go further than a Treasury plan announced in January for a 15% cut to business rates for pubs in England from 1 April. UKHospitality, the trade body, welcomed the recognition that the current system does not work but called for additional measures such as reduced VAT for hospitality businesses.
Burnham is hoping to return to Westminster in the byelection on 18 June, triggered after sitting MP Josh Simons stepped aside. Speaking on BBC Question Time, Burnham confirmed he would challenge Starmer for the Labour leadership if elected, and would seek to join Wes Streeting if he also ran.
