The presumptive prime minister Andy Burnham has signaled a major shift in the business rates system, promising to rebalance the tax burden away from high streets and towards the vast warehouses of online giants.
In his first broadcast interview since launching his bid to become prime minister, Burnham told a business audience that pubs, clubs, and music venues would receive a 20 per cent cut in business rates under his plans, while smaller independent hospitality, leisure, and retail firms would see the threshold for paying rates raised for the first time since 2017.
The cost of the relief would be met by higher levies on the giant distribution sheds operated by online retailers, alongside measures targeting the owners of empty high street properties.
Burnham insisted that he would honour Labour's 2024 manifesto pledges not to raise VAT, income tax, or national insurance, but said there is some room within that manifesto for movement on tax.
The intervention comes at a delicate moment for the sector, as UKHospitality has warned that the 2026 revaluation still leaves many operators facing sharply higher bills.
Burnham was also at pains to shore up his economic credibility, an issue that matters to the eight in ten SME owners who say they fear what a Burnham premiership would mean for their business.
He has previously drawn criticism for suggesting the UK had 'got to get beyond this thing of being in hock to the bond markets', and some on the left of the Labour Party want borrowing rules relaxed to fund higher public spending.
Pressed on the point, Burnham insisted he would not be 'indisciplined' with the public finances, pointing to Greater Manchester's 'rock solid' books during his time as mayor and his earlier stint as a Treasury minister in the last Labour government.
The bigger fiscal headache awaiting him is defence, with Sir Keir Starmer committing to a £15bn increase in defence spending without fully explaining where the money would come from.
Burnham said he would take his responsibilities fully to fund the defence investment plan, if he is in the position to do so, and ruled out 'crude cuts to benefit levels that just put people who are struggling in even worse poverty'.
Instead, he would reduce the benefits bill through better technical education, work placements for 16 year olds, and mental health support for those in work.
Burnham remains the only candidate to replace Sir Keir as Labour leader and is expected to become prime minister on 20 July, with the backing of the night time industries body among parts of the sector already building.
