Key Points
- Andy Burnham has promised to cut business rates for pubs by 20 per cent.
- He has suggested he could scrap or reverse one of Rachel Reeves’ key tax policies if he becomes prime minister.
- Burnham said he is “sympathetic” to cutting employers’ National Insurance.
- He wants to reverse tax rises that he says have harmed hospitality and small businesses since Labour came to power.
- The plans come amid anger over higher business rates for restaurants, shops and other small firms.
- Pubs and music venues have already received a partial carve-out, but Burnham says he would go further.
- He has also proposed lifting the threshold at which the smallest businesses begin paying business rates.
- To fund the changes, he plans to raise taxes on online tech giants and their British warehouses.
- Burnham has now openly positioned himself as a potential challenger to Sir Keir Starmer.
- The announcement marks a major policy split with Labour’s current direction in government.
Greater Manchester (Britain Today News) – June 5, 2026. Andy Burnham has promised sweeping tax relief for pubs and small businesses, setting out one of his clearest challenges yet to Labour’s current economic direction as he signals that he could seek to replace Sir Keir Starmer as prime minister.
Burnham, the Mayor of Greater Manchester, said he would cut business rates for pubs by 20 per cent and reverse what he described as damaging tax rises that have hit hospitality and smaller firms since Labour entered government. He also suggested he could scrap one of Chancellor Rachel Reeves’ most controversial policies, saying he was “sympathetic” to cutting employers’ National Insurance.
The remarks place Burnham in open disagreement with the Starmer-Reeves approach to taxation and public finances. They also give his critics and supporters alike a clearer sense of where he stands on the pressures facing Britain’s high streets, pubs, restaurants and independent retailers.
Burnham’s intervention matters because it combines political ambition with a detailed policy pitch. He is not simply criticising Labour’s economic strategy; he is offering an alternative that would shift the burden away from local businesses and towards large technology companies and warehouse operations linked to online retail.
The timing is significant too. Hospitality and small businesses are already dealing with the effects of a business rates revaluation, alongside the removal of Covid-era reliefs. For many firms, that combination is expected to raise their bills further, intensifying an argument that smaller operators are being squeezed at exactly the wrong time.
Burnham has now made the political calculation explicit. After long speculation about whether he could return to frontline national politics, he has confirmed that, if given the chance, he would seek to remove Sir Keir from Downing Street and pursue a different course for the party.
Why is Burnham attacking Labour’s tax plan?
Burnham’s argument is rooted in the pressure that tax rises have placed on hospitality and small firms. He said Labour has “got this wrong in government” and argued that the contribution of family-owned businesses has been undervalued.
Burnham said:
“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:
“I am willing to be honest about where we have fallen short – and say that my party has got this wrong in government. They have undervalued the contribution these businesses make to our livelihoods and our communities.”
Those comments go beyond simple criticism. They present Burnham as someone trying to claim ownership of a pro-high-street, pro-small business agenda at a time when many operators are struggling with costs. In political terms, that could help him connect with voters who feel squeezed by rising overheads and reduced support.
The policy position also reflects a wider debate inside Labour about the party’s relationship with business. Burnham is effectively arguing that Labour cannot build long-term support if it appears indifferent to pubs, music venues and local shops, particularly in towns and cities where these institutions play a social as well as economic role.
What tax changes did Burnham promise?
Burnham’s headline pledge is a 20 per cent cut in business rates for pubs. He also wants to raise the threshold at which other small businesses begin paying business rates, which would effectively remove the charge for the very smallest firms.
He framed that package as a way to protect family-owned businesses and support local communities. The logic is that lower fixed costs would help pubs, restaurants and shops remain viable even as trading conditions remain difficult.
He also hinted that he could go further than simply adjusting business rates. Burnham said he was sympathetic to reducing employers’ National Insurance, a move that would reverse one of the key tax rises introduced in Labour’s first budget after winning power in 2024.
That tax increase was defended by the government at the time as necessary because of the state of the public finances. Burnham’s position is the opposite: he appears to believe that the burden has fallen too heavily on employers and that Labour should look elsewhere for revenue.
If implemented, the package would amount to a substantial shift in the way Labour taxes business. It would prioritise relief for smaller, locally rooted firms, while seeking to increase pressure on much larger companies with online and warehousing operations.
How would Burnham pay for it?
Burnham has said his plans would be funded by higher taxes on online tech giants and their British warehouses. That approach reflects a broader argument that large digital businesses and e-commerce infrastructure have benefited more than local high streets from the changing economy.
The idea is politically attractive because it allows Burnham to present himself as pro-business without appearing to side with big corporate interests over local traders. It also gives his proposals an element of redistribution, moving the tax burden away from small employers and onto larger, more profitable sectors.
But the funding question is likely to be central to the debate around his plans. Any proposal to cut business rates or employers’ National Insurance would have to be balanced against the need to raise revenue elsewhere, especially at a time when public finances remain tight.
That means Burnham’s pitch will be judged not only on whether voters like it, but also on whether it is credible as a national programme. He is clearly trying to position himself as the candidate of practical relief for small business, yet the scale of the state’s fiscal challenge means the sums would need to add up.
Explore More about Politics:
Lord Hermer: Reform plan may endanger migrants crossing the Channel
Russia Targets Ex-UK Defence Secretary Ben Wallace with Terrorism Incitement Charges
What does this mean for pubs?
For pubs, Burnham’s promise is especially significant because the sector has become a symbol of the wider struggle over business rates and local economic survival. Many operators argue that they have been carrying a disproportionate tax load for years, even as costs rise and consumer spending remains under pressure.
Burnham’s 20 per cent cut would be a direct attempt to ease that strain. It would also signal that pubs are not just another business category, but a part of community life that deserves special treatment.
He appears to understand that political argument. By describing family-owned businesses as the “heart and soul” of the country, he is tapping into a narrative that goes beyond economics and into identity, place and social cohesion.
The fact that pubs and music venues have already received some relief shows the issue has become politically sensitive. Burnham is now promising to deepen that support, which could win attention from publicans, local campaigners and business groups who believe the current system is unfair.
Is Burnham challenging Starmer?
Yes, and he is doing so more openly than before. Burnham’s confirmation that he would seek to oust Sir Keir Starmer if he became the Labour candidate in a future national contest marks a major escalation in the internal debate around the party’s direction.
This is not just a policy disagreement. It is also an assertion of political leadership. Burnham appears to be positioning himself as a figure who can speak for the parts of the country that feel disconnected from Westminster’s current priorities.
His argument is likely to appeal to Labour members and voters who want a more interventionist, locally rooted economic approach. At the same time, it may alarm those who fear that public speculation about leadership challenges could destabilise the party.
The key point is that Burnham is no longer speaking like a regional mayor confined to local issues. He is speaking like a national contender with a distinct economic message, and that message directly contradicts the government’s current stance on tax and spending.
What happens next politically?
The immediate effect is to sharpen attention on Labour’s internal tensions. Burnham’s comments will inevitably be read through the lens of leadership speculation, economic strategy and the future shape of the party.
For supporters, he represents a voice willing to say that Labour has made mistakes and must do more to protect ordinary businesses. For critics, he may appear to be using an already difficult debate about taxes to build a platform for personal advancement.
Either way, the intervention is likely to resonate because it speaks to a live political problem. Businesses are facing higher costs, voters are worried about the economy and Labour is under pressure to explain how it will support growth without deepening financial strain.
Burnham has chosen to place himself at the centre of that debate. By linking his tax proposals to pubs, high streets and small firms, he has created a narrative that is easy to understand and politically potent.
