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Andy Burnham, the Prime Minister, has expressed his intent to extend support for high street businesses by revisiting business rates ahead of the budget announcement on October 28. This comes as part of a broader initiative to alleviate financial pressures on establishments like pubs and clubs, which have already benefited from a 20% rates reduction since Burnham took office.
Continued Support for Small Businesses
During an appearance on BBC Radio 5 Live’s “Wake Up To Money,” Burnham outlined his plans for an expanded business rates relief programme. He acknowledged the current economic pressures facing many firms, stating, “The cost of doing business is too high.” He emphasised that while immediate steps have already been taken, including VAT cuts on electricity and specific relief for the hospitality sector, there remains a need for further action.
Burnham noted that he is committed to examining business rates more comprehensively in the upcoming budget. “There’s plenty more that we can do,” he asserted, indicating a proactive approach to supporting small enterprises struggling in the face of rising costs.
Tackling Economic Challenges
The Prime Minister’s remarks come amid ongoing concern over the financial landscape for small businesses. As he admitted, the hike in national insurance contributions initiated by his predecessor, Sir Keir Starmer, has compounded the challenges faced by employers. Burnham remarked, “Of course it added pressure, the cost of energy is adding pressure. So businesses, I understand what they’re saying and what they’re feeling.”
With energy prices and operational costs rising, small businesses have been vocal about their struggles. Burnham is keen to respond to these concerns, though he is cautious about over-promising amid a challenging fiscal environment. “I wouldn’t want to promise the earth and say all can be solved… but I think everyone knows that I’m in a position with limited room for manoeuvre,” he explained.
A Focus on Immediate Measures
As part of his initial actions in office, Burnham has already implemented several key measures aimed at easing the burden on small businesses. The VAT exemption on electricity for smaller firms is designed to provide immediate financial relief, while the business rates cuts for pubs are part of a targeted effort to support the hospitality sector.
“Well, I have already made moves in three weeks in my first period in office,” Burnham noted, highlighting his commitment to swift action. He has indicated that a thorough review of business rates for high street enterprises will be a priority in the upcoming budget discussions.
Why it Matters
The Prime Minister’s commitment to revising business rates is more than just a financial adjustment; it represents a crucial recognition of the challenges faced by small businesses in a post-pandemic economy. As they navigate rising operational costs and economic uncertainty, Burnham’s measures could provide a lifeline, bolstering local economies and supporting communities across the country. The forthcoming budget will be a critical juncture in determining the extent to which these businesses can thrive in an increasingly competitive landscape.
