The mayor of Greater Manchester, who is expected to launch a challenge to Keir Starmer’s leadership if he wins as the Labour candidate in the Makerfield byelection, said he would abolish business rates for shops and would increase the threshold at which small businesses start paying business rates from £12,000 to £18,000.
The tax relief would be limited to single-site businesses in an effort to target family-owned shops and hospitality venues.
“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,” says Burnham.
“I am willing to be honest about where we have fallen short and say that my party has got it wrong in government. They have undervalued the contribution that these businesses make to our livelihoods and our communities.”
Chef Tom Kerridge, who is spearheading the #VATsTheProblem campaign calling for hospitality VAT to be cut to 10%, said that the hospitality sector should get behind Burnham. The chef was quoted in The Guardian offering his support, saying: “Andy Burnham has backed a cut to VAT and as Manchester mayor he represents one of the most vibrant and exciting cities in the UK with a growing food scene.
“This is somebody who understands nightlife, food, hospitality and entertainment, he sees it as the lifeblood of creativity.
“It’s looking like there may be a future leadership contest and this is someone the whole of hospitality should get behind.”
Emma McClarkson, chief executive of the British Beer and Pub Association, also welcomed the idea of a 20% cut on top of the current business rates relief. “While the current relief in business rates for pubs is welcome, pubs continue to pay a disproportionately higher rate which grinds down their ability to keep the doors open,” she says.
“A further 20% would be a real boost for the local, and raising the threshold so many smaller pubs get taken out of paying rates would make a real difference to high streets and livelihoods.”
