Burnham announces 20% pub rates cut in Makerfield — Andy Burnham State Pension Policy

Andy Burnham used the Makerfield byelection to set out his first significant policy initiative, linking the andy burnham state pension policy debate to a new push on employers’ national insurance and business rates. He said he would consider cutting some employers’ national insurance contributions and proposed a 20% cut in business rates for pubs, clubs and music venues.

Burnham said he wanted to reconsider the increase in employers’ NICs brought in at the 2024 budget, and he said: "Labour have got it wrong on small businesses." The proposals would also raise the threshold for smaller, independent hospitality, leisure and retail companies to pay business rates for the first time since 2017, while a taper system would avoid a payments cliff edge.

Makerfield byelection plans

Burnham made the announcement during the Makerfield byelection, where he has been cautious about concrete policy decisions. He had said he did not want to go beyond what Labour promised in its election manifesto, but the statement released by his team on Friday set out a clearer package for business rates and employers’ national insurance.

In the statement, Burnham said: "I am willing to be honest about where we have fallen short and say that my party has got this wrong in government." He added: "They have undervalued the contribution these businesses make to our livelihoods and our communities." He also said: "Our high streets matter to me because they matter to the people who live here. I want to make sure that these family-owned businesses, as the heart and soul of this country, are protected and given the chance to thrive."

Business rates for pubs

The plan goes further than a Treasury proposal announced in January, which set out a 15% cut to business rates for pubs in England from 1 April and then a freeze in real terms for a further two years. Burnham’s version would give pubs, clubs and music venues a 20% cut next year, and it would also extend relief to smaller independent hospitality, leisure and retail companies through the higher threshold and taper system.

The funding side is set out clearly too. Burnham said the cuts would be paid for by higher levies on giant warehouses operated by online firms such as Amazon and by targeting the owners of empty high street properties. He said the burden on employers’ national insurance was not the right decision, and he said the party had got it wrong in government.

Rachel Reeves budget changes

The announcement follows a backlash in the hospitality sector against changes to business rates announced in Rachel Reeves’ budget in November. UKHospitality said the majority of members still expected to pay more in business rates and warned that, alongside a higher minimum wage, the changes could lead to job cuts.

For pubs, clubs and independent venues, Burnham’s proposal sets up a direct contrast: a lower bill for many businesses he says were undervalued, paid for by higher charges on warehouse operators and empty properties. The immediate next step is political rather than procedural, with Burnham using the Makerfield contest to press a policy shift inside his own party.