Burnham pledges to review NICs increase and cut business rates for pubs | Labour
In his first major policy initiative during the Makerfield by-election, Andy Burnham said he would consider cutting national insurance contributions from some employers and suggested business rates cuts for pubs and small family businesses.
Burnham’s plans amount to significant criticism of Keir Starmer’s policies in these areas. In his announcement on business rates, the mayor of Greater Manchester said: “Labour has got it wrong on small business.”
He has been wary of discussing concrete policy decisions, partly because of his desire to focus on the current race, but also because he said he would not want to go beyond what Labor had promised in its election manifesto.
But in an interview with the BBC’s Newsnight programme, Burnham said he wanted to reconsider the increase in employers’ NICs in the 2024 budget; The measure has been criticized by many in the Labor Party, including Wes Streeting, the former health secretary and another potential rival to Starmer.
“I said I didn’t think the weight of the burden on employers’ national insurance was the right decision. But that was the decision,” Burnham said.
“There’s more that needs to be done to listen to the voices of small businesses, and I hear that a lot as I travel around this constituency. People feel like they’re at the limit of what they can do.”
In a separate policy statement published by his team on Friday, Burnham promised help on business rates, acknowledging criticism of the government’s policies towards small businesses and pubs in particular.
Under his plan, pubs, clubs and music venues will receive a 20 per cent cut next year, while smaller, independent hospitality, leisure and retail companies will have the threshold to pay increased business rates for the first time since 2017, with many falling outside the scope of the tax. A contraction system will avoid the cliff edge in payments.
Under the proposal, the cuts would be paid for by higher taxes on giant warehouses run by online firms such as Amazon, targeting owners of vacant properties on the high street.
“I’m ready to be honest about where we’ve fallen short and say my party has been wrong in government on this,” Burnham said in a statement. “They underestimated the contribution these businesses make to our livelihoods and communities.
“Our high streets are important to me because they are important to the people who live here. I want to make sure these family businesses, which are the heart and soul of this country, are protected and given the chance to thrive.”
The proposals go further than the Treasury plan announced in January, which envisaged a 15% cut in business rates for pubs in England from April 1 and a real real bill freeze for another two years.
It follows a backlash in the hospitality industry to changes to business rates announced in Rachel Reeves’ budget in November, with warnings of potentially widespread closures and job losses, particularly in pubs.
Despite the support package, UKHospitality, which represents the sector, said the majority of members still expected to pay more in business rates, which could lead to higher minimum wages as well as redundancies.
Responding to Burnham’s proposals, the trade body said it was right to accept that the current system is not working, but any effective policy should also consider ideas such as reducing VAT for hospitality businesses.
Burnham hopes to return to Westminster in the June 18 by-election; This contest was triggered after MP Josh Simons stood aside in the hope that he would replace the mayor of Greater Manchester and challenge Starmer for the Labor leadership.
Speaking on the BBC Question Time special on Thursday night, Burnham confirmed that was his intention if elected. He said Streeting wanted to challenge Starmer and would “try to join him” if that happened.
