Andy Burnham has signalled that further business rates relief for high street companies could be included in the next budget. The move would build on a 20% rates reduction for pubs announced last month, while offering potential support to other businesses confronting rising energy bills, higher operating costs and weaker financial conditions.
Key takeaways
Burnham’s comments point to a broader review of business rates, but he stressed that the government’s limited finances would constrain the scale of any package.
- Further relief could be announced for high street businesses in the budget.
- Pubs have already received a 20% business rates reduction.
- Restaurants and hotels were excluded from the initial measure.
- VAT relief on electricity for the smallest businesses is also being advanced.
- Burnham warned that all measures would need to be fully funded.
Wider relief under consideration
Speaking to BBC Radio 5 Live, Burnham said the government intended to examine business rates “more broadly” for high street companies. His comments suggest that the policy could extend beyond pubs and similar venues to businesses such as restaurants, hotels and other town-centre operators.
The announcement follows the government’s decision last month to cut business rates for pubs by 20%. While the measure was welcomed by the sector, the exclusion of restaurants and hotels prompted concerns that support was being distributed unevenly across hospitality.
Businesses face pressure from rising costs
Burnham acknowledged that the cost of doing business remained too high. High energy prices, increased business rates and wider operating costs have placed pressure on companies already dealing with difficult trading conditions.
He also accepted that previous Labour government measures to raise business rates during Keir Starmer’s time in office had added to the burden on high street businesses. The admission underlines the political challenge facing the government as it attempts to support companies without creating a significant new funding requirement.
VAT and energy support
Alongside the potential rates changes, Burnham highlighted plans to remove VAT from electricity for the smallest businesses. He said the measure would allow eligible companies to benefit directly from lower energy costs.
The combination of energy and rates relief is intended to address two of the largest fixed costs facing many high street operators. However, the eventual impact will depend on the eligibility rules, timing and value of the measures announced in the budget.
Limited room for manoeuvre
Burnham cautioned that the government could not promise to resolve every difficulty facing businesses. He said the financial outlook was challenging and that ministers would not introduce measures that could not be properly funded.
That warning is likely to temper expectations among businesses seeking more substantial support. Although the government has indicated that additional relief is possible, companies may have to wait for the budget before the scope of the proposals becomes clear.
- Andy Burnham signals further business rates relief for high street businesses, restaurantonline.co.uk.
