Andy Burnham has placed business rates reform at the centre of his economic agenda, promising to support a high street revival as pressure mounts on small firms facing rising operating costs.
The Labour leadership contender said reform of the current system would form part of a wider effort to revitalise town centres and strengthen local economies.
The pledge comes as new research highlights the scale of demand from small and medium-sized businesses for changes to the tax system.
Data from Bibby Financial Services’ Q1 2026 SME Confidence Tracker shows 35% of SMEs want the Government to simplify taxes and introduce incentives, including reducing business rates.
The findings suggest business rates reform is now the most sought-after policy intervention among smaller firms, ranking ahead of measures to reduce energy costs or reverse increases in Employer National Insurance Contributions.
For many SMEs, the existing rates system remains a significant barrier to investment, particularly for high street businesses facing weaker consumer demand and rising costs.
Burnham’s proposal reflects growing political focus on local growth, with business groups arguing that reducing fixed costs could help unlock investment and improve the resilience of smaller companies.
However, the challenge for policymakers will be balancing support for businesses with the need to maintain public revenues.
The response from SMEs indicates that tax simplification and cost reduction are becoming central issues as the next government seeks to restore confidence among Britain’s business community.
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