Retailers have welcomed Andy Burnham’s pledge to reform business rates, but warned that high street businesses need meaningful action rather than another round of promises.
The former Greater Manchester mayor, who is now the MP for Makerfield and frontrunner to replace Sir Keir Starmer as Prime Minister, used a speech in Manchester to call for a reset in how Britain is governed.
Speaking at the People’s History Museum, Burnham said he wanted to deliver “good growth in every postcode” and asked whether high streets should become “the new symbol of Britain’s renaissance”.
As part of his pitch, Burnham repeated plans to reform business rates to support pubs, independent businesses and struggling town centres.
During his Makerfield campaign, Burnham said he would back a 20 per cent business rates cut for pubs and clubs, while taking independent shops, restaurants and cafes out of paying business rates altogether.
He has also pledged to create a new “No 10 North” in Manchester, as part of a wider plan to shift more decision-making power away from Whitehall and hand greater control to local communities.
British Retail Consortium chief executive Helen Dickinson said retailers would be “heartened” by Burnham’s ambition to create “good growth in every postcode”.
“Retail sits at the heart of our local economies, providing jobs, investment, and essential goods and services for local people,” she said.
“Retailers want to be at the forefront of Britain’s renaissance, helping revitalise our towns, cities, and high streets. Andy Burnham is right to recognise that business rates reform is essential to unlocking that investment.
“The current system remains broken, holding back growth, jobs and regeneration in communities across the country.
“If government can buy into retail, putting the right reforms in place, retailers will help deliver jobs, support families with the cost of living, and create the thriving high streets that sit at the heart of Andy Burnham’s vision.”
The British Independent Retailers Association gave a more cautious response, warning that its members had heard repeated promises of reform before.
Bira chief executive Andrew Goodacre said: “We have heard promises of business rates reform before, not least from this government, and the reality for our members has been a 15 per cent 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 would very much welcome the opportunity to work with Mr Burnham and his team to find a true and meaningful solution that supports the high streets that are so vital to communities across the UK.”
He 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.”
Retailers have long argued that the current business rates system places a disproportionate burden on bricks-and-mortar stores, particularly at a time when many are investing in store upgrades, omnichannel services, local jobs and town centre regeneration.
From 1 April 2026, the Government set the business rates multiplier at 50.8p for properties with a rateable value of £500,000 and above, a move that has been criticised by high street campaigners as a “super tax” on large physical stores.
Industry groups have warned that higher property taxes risk further weakening high streets by limiting retailers’ ability to invest in stores, staff and local communities.
While Burnham has put business rates reform at the centre of his high street pitch, questions remain over how the overhaul would be funded and how quickly changes could be delivered.
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