Burnham Pledges 20% Cut to Business Rates for Pubs

Andy Burnham has pledged to reform taxes impacting Britain’s pubs and high streets, suggesting that he could slash business rates for pubs and “prioritise the businesses that bring people together”.

Speaking to Tonight with Andrew Marr, Burnham who is expected to become Britain’s next Prime Minister promiesed to stick to Labour’s 2024 general election manifesto and Chancellor Rachel Reeves’ iron clad fiscal rules, but admitted there “is some room for movement on tax”.

For operators in the pub and bar trade, the most significant development is Burnham’s stated intention to reform business rates, in the interview he set out plans to reduce business rates for pubs and bars by 20%, funded in part by higher rates levied on warehouses and large out-of-town developments.

“I believe there is a case for higher business rates on warehouses and the major developments we see on the outskirts of our cities, so we can cut business rates for pubs – I proposed a 20% cut – and lift some high street businesses out of business rates altogether,” Burnham said.

He also moved to reassure businesses that Labour’s 2024 manifesto commitments on tax remain intact, confirming there would be no increases to VAT or National Insurance.
“I stick by the manifesto and the promises that it made,” he said, “but there is some room within that manifesto for movement on tax.”

John McMahon partner at law firm Spencer West LLP: “Having advised hospitality and retail businesses for almost three decades, I have seen first hand the immense pressures facing pubs, restaurants, cafés and independent retailers. They are resilient businesses, but many continue to battle rising costs, increasing regulation, higher employment expenses and an outdated system of business taxation.

“That is why Andy Burnham’s commitment to overhaul the tax burden affecting pubs and high streets is a welcome and positive development. Our town and city centres rely upon thriving hospitality and retail sectors, not only as drivers of economic activity, but as places where communities meet, socialise and prosper.

“A fairer and more balanced tax system has the potential to unlock investment, encourage business expansion and restore confidence to operators who have faced years of uncertainty. It would also make it more attractive for entrepreneurs to establish new businesses and breathe fresh life into high streets that have struggled in recent years.

“From a legal and commercial perspective, the message is clear. If Government is serious about regenerating our town centres, supporting employment and encouraging private investment, then reforming the tax environment for hospitality and retail businesses is an essential part of the solution.

“The hospitality industry has repeatedly demonstrated its resilience. It now deserves a taxation framework that recognises its economic importance, rewards investment and gives businesses the confidence to plan for the future.

For Northern Ireland, in particular where hospitality and tourism contribute significantly to our economy and support thousands of jobs, meaningful reform could be transformational for businesses, employees and local communities alike.”