The $100 million gamble

Greater Manchester mayor Andy Burnham has pledged to cut business rates by 20 per cent for pubs and music venues and abolish rates for cafés, shops and hairdressers if he becomes prime minister,funding the plan by taxing online tech giants and tackling tax evasion.

The move is a direct challenge to Keir Starmer's economic policies and aims to support high streets and family‑run businesses.

Burnham criticized the current government for having 'got it wrong' on small businesses, saying it has undervalued high streets and family‑owned firms.

In addition to the 20 percent cut for pubs and music venues, he vows to abolish business rates entirely for cafés, shops and hairdressers.

To fund these measures, he would increase taxes on online tech giants and their warehouses and clamp down on tax evasion that harms high streets.

The planned cuts would start in 2027‑28, costing around £100 million, while the full abolition could add another £250 million.

An echo of Sydney's 2024 institutional buy-up

The government is currently revaluing business rates and removing Covid‑era relief,which will raise levies for many small firms.

Pubs and music venues received a 15 percent relief package in January after public outcry, but Burnham wants to go further by raising the threshold for paying rates, effectively eliminating the tax for the smallest businesses.

Burnham stated: 'Our high streets matter to me because they matter to the people who live here. I want to make sure that these family‑owned businesses, as the heart and soul of this country, are protected and given the chance to thrive.'

He added: 'Reconnecting Labour to working‑class Britain means backing our high streets and reconnecting with our local family‑run businesses.'

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Industry groups welcomed the focus on reform.

Allen Simpson, CEO of UKHospitality, said: 'It's right to recognise that high street hospitality businesses are the heart and soul of Britain and, crucially, that the system is broken and in need of reform .'

Emma McClarkin, CEO of the British Beer and Pub Association, added: 'While the current relief in business rates for pubs is welcome, pubs continue to pay a disproportionately higher rate which grinds down their ability to keep the doors open.'

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The planned cuts would start in 2027‑28, costing around £100 million, while the full abolition could add another £250 million.

This directly challenges Chancellor Rachel Reeves and Sir Keir Starmer's economic approach since the 2024 election.

Burnham's plan is a bold move to support high streets and family‑run businesses, but will it be enough to revive Britain's economic heartland?