Andy Burnham, the Labour candidate in the Makerfield byelection, has announced a policy to cut business rates for pubs and small businesses by 20% and to review the rise in employers’ national insurance contributions (NICs). In a move that criticises the government's approach, Burnham said Labour had 'got it wrong on small businesses'.
Speaking to the BBC’s Newsnight, Burnham stated he would reconsider the increase in employers’ NICs introduced in the 2024 budget, though he acknowledged it was already policy. 'There is more that needs to be done to listen to the voice of small business,' he said.
Under his proposal, pubs, clubs and music venues would receive a 20% cut to business rates next year, while the threshold for paying business rates would be raised for smaller hospitality, leisure and retail firms. The cuts would be funded by higher levies on large warehouses operated by online firms such as Amazon and by targeting owners of empty high street properties. The plan goes further than the Treasury’s 15% cut for pubs in England, announced in January.
The trade body UKHospitality welcomed the recognition that the current system is flawed but called for broader measures, including reduced VAT. Burnham hopes to return to Westminster in the 18 June byelection, with the aim of challenging Keir Starmer for the Labour leadership, a move he confirmed during a BBC Question Time special.
