Stories

Fri, 03 Jul 2026

Fri, 03 Jul 2026 Burnham says there is some room for movement on tax

But the likely next PM says he will stick to Labour's pledges to not raise VAT, income tax or national insurance.
Burnham suggested increasing business rates on warehouses operated by online firms like Amazon and targeting empty high street properties to fund tax cuts for pubs, clubs, and music venues, as well as smaller independent hospitality, leisure, and retail companies. He proposed a 20% cut in business rates for these businesses, with the threshold for paying raised for the first time since 2017. Burnham's comments came after he faced criticism from some on the left of the Labour Party who have called for borrowing rules to be relaxed to fund more public spending. Burnham has previously argued that the UK should not be "in hock to the bond markets", but said he sticks by the manifesto and promises made. The pledge to help with business rates was made during his successful by-election campaign in Makerfield, where he promised a 20% cut for pubs and clubs, as well as smaller independent businesses. The cuts would be paid for by higher levies on warehouses operated by online firms and targeting empty high street properties. Burnham also addressed the issue of funding an increase in defence spending, saying he would take his responsibilities seriously to fund the £15bn plan announced by Sir Keir Starmer. He added that he would not make "crude cuts" to benefit levels but would try to reduce the benefits bill through education system changes and providing work placements for 16-year-olds. Burnham's potential policies include:
* Increasing business rates on warehouses operated by online firms
* Targeting empty high street properties to fund tax cuts for pubs, clubs, and music venues
* Raising the threshold for paying business rates for smaller independent hospitality, leisure, and retail companies
* Providing a 20% cut in business rates for pubs and clubs
* Reducing benefits bill through education system changes and providing work placements for 16-year-olds Burnham is expected to take over as prime minister on July 20th.