Prime Minister Andy Burnham has confirmed that further business rates cuts will be introduced in October, with the Autumn Budget set to deliver additional reform for high street businesses. Speaking on BBC Radio 5 Live's Wake Up To Money programme, Mr Burnham said the government would "go further" with rates reductions, building on earlier commitments to lower commercial taxes for pubs, clubs and entertainment venues.
October Budget to Include Broader Rates Reform
The fiscal statement, due on October 28, will be delivered by Chancellor John Healey. Mr Burnham, who is also the MP for Makerfield, indicated that the Budget would address business rates more broadly, particularly for high street businesses. He said: "We are going to bring forward the VAT cuts on electricity, we are bringing forward the business rate cuts for pubs, we're going to look at business rates more broadly for high street businesses in the budget, so there's plenty more that we can do."
The Prime Minister acknowledged that "the cost of doing business is too high," but cautioned against unrealistic expectations. "I wouldn't want to promise the earth and say all can be solved because I think people can see I'm facing a difficult financial outlook, and I won't bring forward things that I can't fully fund," he added.
Early Moves on VAT and Pubs
Mr Burnham highlighted actions already taken in his first three weeks in office, including a commitment on VAT on electricity, which he said benefits the smallest businesses. "I've made a commitment around VAT on electricity, and that does affect the smallest businesses who are able to get the benefits of the removal of VAT on electricity," he explained.
He also noted progress on pubs and business rates, stating: "We've made a move on pubs and business rates. I'm signalling going further on business rates. So there are things that we can do, and we'll do everything that is possible for us to do." However, he stressed the constraints of limited fiscal headroom: "But I think everyone knows that I'm in a position with limited room for manoeuvre."
Energy Costs Add Pressure
Responding to concerns about energy costs, Mr Burnham acknowledged the added strain on businesses. "Of course, it added pressure; the cost of energy is adding pressure. So businesses, I understand what they're saying and what they're feeling, and my job is to not just hear that but then respond to it and see what we can do," he said.
The promised reforms come alongside a separate announcement confirming changes affecting seven high street banks, indicating a broader government focus on supporting the retail sector. The October Budget will now be closely watched by business groups for further details on rates relief.
