Andy Burnham’s plans to overhaul business rates to support small high street firms could cost around £880 million a year, according to new analysis.
The frontrunner to become prime minister this summer has indicated that he plans to cover the cost through higher property taxes for large warehouses, particularly targeting online giants such as Amazon.
Mr Burnham said on LBC earlier this week that there is “room for movement on tax” within Labour’s manifesto whilst maintaining his commitment to the party’s fiscal rules, stressing his ambition to support the high street.
He has repeated proposals, first outlined during the Makerfield by-election campaign, for a 50% increase in the threshold for 100% small business rates relief in England.
Forecasts by global tax firm Ryan suggest the policy could lift more than 140,000 additional small premises out of paying business rates altogether.
As a result, this is likely to reduce business rates liabilities by around £880 million, based on government tax data.
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