Burnham Signals Room for Tax Movement on Business Rates

Andy Burnham spent most of his first broadcast interview as prime-minister-in-waiting insisting he wouldn't touch the big taxes — then spent the rest of it explaining exactly which smaller ones he would.

Speaking to LBC on Thursday, Burnham said there is "some room" within Labour's 2024 manifesto for movement on tax, floating higher business rates on warehouses to help fund cuts for pubs and independent high street businesses. It was his first media appearance since launching his bid to become prime minister following Sir Keir Starmer's resignation.

The Manifesto Line He Won't Cross

Burnham was explicit that he intends to keep Labour's pledges not to raise VAT, income tax or national insurance. "I stick by the manifesto and the promises that it made," he said, adding there is still room for movement inside that framework.

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The business rates pledge builds on a commitment he made last month during his successful Makerfield by-election campaign: pubs, clubs and music venues would get a 20% cut, while smaller hospitality and retail firms would see the threshold for paying business rates raised for the first time since 2017. He said the change would be paid for through higher levies on large online-retail warehouses and by targeting owners of empty high street properties.

Defending His Economic Record

Burnham pushed back on critics questioning his fiscal discipline, pointing to his decade running Greater Manchester and his earlier stint as a Treasury minister. He described the region's finances during his tenure as "rock solid," rejecting the suggestion he would loosen the public purse strings if he becomes prime minister.

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Conservative leader Kemi Badenoch used the interview to accuse Burnham of dodging scrutiny, pointing to his planned Reddit question session later Friday rather than further broadcast interviews. She argued any funding shortfall from the recently announced £15bn defence spending increase should be closed through welfare cuts rather than new taxes.

The Bill Waiting on His Desk

Burnham acknowledged he wasn't part of every internal discussion on the defence funding gap but said he would take full responsibility for closing it if he takes office. Whoever he chooses as chancellor — with speculation already centring on Ed Miliband — will need to find at least £4.7bn in savings from other departments before the autumn Budget. Burnham said he would avoid "crude cuts" to benefits and instead try to shrink the welfare bill through education and work-placement reform. He is set to take over as prime minister on 20 July.

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