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Greater Manchester mayor Andy Burnham has proposed a 20% cut to business rates for pubs and other small businesses, a plan that goes further than current government policy and carries an implicit rebuke of his party's approach. In a policy statement released on Friday, Burnham also suggested raising the threshold for paying business rates for the first time since 2017, which would take many smaller, family-run enterprises out of the levy altogether.
The announcement comes as ministers separately consider devolving business rates to regional mayors as part of a wider shift of tax income to local leaders, according to a report in the Guardian. The Treasury's current plan, announced in January, offers a 15% cut to business rates for pubs in England from 1 April, followed by a freeze in real terms for two years.
Coverage Comparison
Two separate Guardian articles, both published on the same day, cover the story from distinct angles. The first focuses on Burnham's policy initiative, framing it as "notable criticism" of Labour's approach to small businesses, with Burnham quoted saying "Labour have got it wrong on small businesses." The second article centres on the government's deliberations over devolving business rates to regional mayors, featuring comments from local government secretary Steve Reed about potential changes to the tax system.
While the first article positions Burnham's plan as going "further than" the Treasury's proposal, the second treats the devolution idea as part of a broader set of tax reforms being explored by the chancellor, Rachel Reeves. Neither article suggests the two developments are directly linked, though Burnham's commitment to devolution is noted in the second piece.
Key Claims
Burnham's proposal, as reported by the Guardian, includes a 20% cut to business rates for pubs, clubs and music venues, with a taper system to avoid a sudden drop-off in liability. Smaller independent hospitality, leisure and retail businesses would benefit from a raised threshold for paying the tax. The cuts would be funded by higher levies on large warehouses operated by online firms such as Amazon, and by targeting owners of empty high street properties, according to the statement.
"I am willing to be honest about where we have fallen short and say that my party has got this wrong in government," Burnham said. "They have undervalued the contribution these businesses make to our livelihoods and our communities."
The devolution story, reported in the second article, suggests ministers are considering handing over billions of pounds raised by business rates to regional mayors. Steve Reed told the Guardian: "The chancellor pointed to devolving aspects of income tax, as we discussed, but certainly we look at business rates, too – or elements of business rates." Reed cautioned that any system would include an equalisation mechanism to prevent poorer areas from falling further behind.
Neither article provides independent verification of the figures cited, and the claims about the devolution plan are attributed to Reed's comments and reported as proposals under consideration rather than confirmed policy. The business rates tax raised £26.4bn last year, according to the first article, though this figure is not independently confirmed in the coverage provided.
Perspectives
Burnham's proposal reflects a view that the current system fails small businesses, particularly after many saw their rates rise sharply following a revaluation after the Covid pandemic. His plan aims to shift the tax burden from small high street businesses to large online operators and property owners.
The government's approach, as described by Reed, prioritises caution over radical change. Any devolution would include safeguards to balance regional disparities, and Reed stressed that the business rates idea is "not a worked-up policy" but "in principle" under consideration.
Observers may note that Burnham's initiative comes during a byelection in Makerfield, which could add political significance to his criticism of Labour's record. The devolution story also touches on the uncertain future of Reeves' position given questions surrounding the prime minister's leadership, but neither article makes definitive predictions about the outcome of these proposals.