A leading independent retailers association has welcomed Labour leadership candidate Andy Burnham’s commitment to reforming business rates for high streets and pubs, which he announced in his first public speech since becoming a candidate to replace Keir Starmer as Prime Minister.
However, the British Independent Retailers Association (Bira) has warned independent retailers will need to see action, not just promises.
In his first major policy speech today (29 June), Burnham promised reform of business rates and the high street as part of a wider package of pledges that included the biggest council house building programme since the post-war period and a major redistribution of power away from central government.
With no other Labour MP having declared a leadership bid, Burnham is expected to become UK Prime Minister on 20 July.
Bira, which works with over 6,000 independent retailers across the UK, says the immediate reaction from its members will be one of cautious scepticism. The current government also pledged to reform business rates, yet the average high street retailer has seen their bill increase by 15% this year, while businesses in out-of-town retail parks have seen bills fall.
Andrew Goodacre (left), CEO of Bira, said: “We’ve heard promises of business rates reform before, not least from this government, and the reality for our members has been a 15% increase in their bills this year, while retail park businesses have seen their bills decrease.
“Independent high street retailers deserve better than that. We genuinely welcome the intention behind Mr Burnham’s commitment, and we’d very much welcome the opportunity to work with him and his team to find a true and meaningful solution that supports the high streets that are so vital to communities across the UK.”
Goodacre added: “High streets are a barometer for the health and happiness of our towns and cities. Getting business rates right is one of the most important things any government can do to help them thrive. We will be reaching out to Mr Burnham’s office and stand ready to play our part in making that happen.”
Also ressponding to the seech today, Ros Morgan, chief executive of Heart of London Business Alliance, which represents over 500 firms and is a member of the Real Rates Reform Alliance, said: “Andy Burnham is right to recognise that Britain’s business rates system is broken. But there is an opportunity for the new Prime Minister and Chancellor to go further.
“Business rates reform should drive good growth through investment, productivity, jobs and thriving town and city centres.
“The Real Rates Reform Alliance’s hybrid business rate would broaden the tax base through a modest levy on online sales, enabling a permanent reduction in business rates for businesses investing in physical premises. It is a practical reform that reflects today’s economy and supports long-term growth right across the UK.
“Now is the time to deliver what Labour promised in its last election manifesto - real rates reform and the modern business tax system Britain needs.”
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