What Andy Burnham's Appointment Means for Business Rates
Andy Burnham has taken office as the UK's new Prime Minister, using his first address outside 10 Downing Street to outline a broad vision centred on economic renewal and supporting working people.
Proposals set out during his leadership campaign suggest reform remains firmly on the government's agenda. From targeted support for high street businesses to wider discussions around commercial property taxation, the direction of travel is becoming clearer.
Targeted Support for High Street Businesses
One of the headline proposals announced during Burnham's leadership campaign was a 20% reduction in business rates for pubs, cafés, clubs and live music venues.
Alongside this, the government has proposed increasing the threshold for 100% Small Business Rates Relief from a rateable value of £12,000 to £18,000, with tapered relief extending from £15,000 to £21,000.
If introduced, these changes would remove many smaller independent businesses from paying business rates altogether while extending support to others operating on Britain's high streets.
The proposals are designed to reduce costs for sectors that continue to face significant operating pressures while supporting investment in local communities.
A Shift in the Business Rates Burden
The proposed reductions would need to be funded elsewhere. Burnham has suggested increasing property taxes on large out-of-town warehouses operated by major online retailers, alongside additional measures targeting long-term vacant commercial property.
The objective is to shift part of the business rates burden away from traditional high street businesses and towards larger logistics operations that have benefited from the continued growth of online retail.
This reflects a wider debate about whether the current business rates system still fairly reflects the way businesses operate today.
Could Wider Reform Follow?
Labour has already committed to replacing the existing business rates system with a new approach designed to create a more level playing field between high street businesses and online operators.
Industry organisations representing retail, hospitality and town centres have continued to argue that the current system places a disproportionate burden on businesses operating from physical premises because rates are based on property values rather than business performance.
Alongside Burnham's proposals, a number of alternative models have also been put forward, including hybrid systems that combine lower business rates with taxes on online sales. While these are not government policy, they demonstrate that the conversation has moved beyond targeted reliefs towards wider reform of commercial property taxation.
When Could Businesses See Change?
Businesses should not expect immediate changes to their business rates bills. Any reforms would need to be announced through a future Budget before progressing through Parliament and being implemented.
For now, businesses should view the proposals as an indication of policy direction rather than confirmed changes to their liabilities. The government's first fiscal announcements are likely to provide greater clarity on which proposals move forward and over what timescale.
What Could This Mean for Businesses?
If the proposals are implemented, high street businesses, particularly those operating within hospitality, retail and leisure, could benefit from lower business rates and expanded reliefs.
Conversely, owners and occupiers of large warehouse and logistics facilities may face increased property taxation if funding proposals progress.
More broadly, business rates reform has clearly returned to the political agenda, meaning businesses should expect further discussion around how commercial property is taxed over the coming months.
How CPA Can Help
Policy proposals are only one part of the picture. The potential impact on your business will depend on factors such as your industry, property type, rateable value and how any future reforms are ultimately implemented.
At Commercial Property Advisors (CPA), we help businesses understand what proposed changes could mean in practice. Whether you're likely to benefit from new reliefs, be affected by future reforms or simply want confidence that you're paying the correct amount today, our specialists can provide independent, expert advice based on your individual circumstances.
Where opportunities exist, our RICS-regulated surveyors can also carry out detailed business rates reviews, identify inaccuracies or unclaimed reliefs, and manage appeals on a no win, no fee basis.
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We just need a few details about your property. If you’re able to upload your latest business rates bill, this will give us a clear view of your current assessment and allows us to begin straight away.
This initial review is simply to identify whether savings can be made and there is zero obligation.
We carry out a full risk assessment before taking any action, ensuring your position is protected, and our no-saving, no-fee service means we don’t charge any fees unless a saving is secured.
