Prime Minister Andy Burnham has signalled further business rates relief for high street companies at October’s Budget, acknowledging that the cost of operating in Britain remains too high for many smaller businesses.
Mr Burnham said his government was examining broader reductions in business rates after announcing a 20 per cent cut for pubs, clubs and other hospitality venues.
The measure was among the first economic interventions unveiled since he entered Downing Street, alongside plans to remove VAT from electricity bills.
Speaking to BBC Radio 5 Live’s Wake Up To Money, Mr Burnham said ministers would “look at business rates more broadly for high street businesses” at the October 28 Budget.
“We’re going to bring forward the VAT cuts on electricity, we’re bringing forward the business rate cuts for pubs, we’re going to look at business rates more broadly for high street businesses in the Budget,” he said.
The comments come as retailers, hospitality groups and other high street businesses face a combination of elevated energy costs, higher employment expenses and weak consumer demand.
Mr Burnham acknowledged the pressure but warned that his government had limited room for manoeuvre given the state of the public finances.
“I wouldn’t want to promise the earth,” he said, adding that he would not introduce measures that could not be fully funded.
The Prime Minister argued that his government had nevertheless moved quickly, pointing to the proposed removal of VAT from electricity and the business rates reduction for pubs.
He said there was “limited room for manoeuvre” but promised to do “everything that is possible” to support struggling businesses.
Mr Burnham also acknowledged that his predecessor Sir Keir Starmer and former chancellor Rachel Reeves’ increase in employer national insurance contributions had added to companies’ costs.
“Of course it added pressure,” he said, alongside rising energy bills.
The government now faces a delicate balancing act. Business rates relief could provide immediate support to companies operating on thin margins, but broader cuts would create a significant hole in the Treasury’s revenues.
For the high street, the Budget could therefore become a test of how far Mr Burnham is prepared to go in shifting the burden of rising costs from businesses to the state — and how much fiscal space he has left to do so
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