BURNHAM'S SMALL BUSINESS RATES PLAN CARRIES £880M ANNUAL COST

Andy Burnham's proposal to overhaul business rates in support of small high street firms could cost approximately £880 million per year, according to analysis by global tax firm Ryan. The plan would raise the threshold for 100% small business rates relief in England from £12,000 to £18,000 rateable value. Forecasts suggest the policy could exempt more than 140,000 additional small premises from paying business rates altogether. Mr Burnham has indicated he plans to offset the cost through higher property taxes on large warehouses, particularly those operated by online retailers.

The proposal would also extend the upper threshold for tapered relief to £21,000, up from the current £15,000. Mr Burnham first outlined these plans during the Makerfield by-election campaign, which he won last month. He told LBC that there is "room for movement on tax" within Labour's manifesto whilst maintaining commitment to the party's fiscal rules. Alex Probyn, a practice leader for property tax at Ryan, stated that larger commercial properties already contribute more through existing business rates surtax to fund lower liabilities for retail, hospitality and leisure sectors.

Mr Burnham indicated that higher business rates on major developments on the outskirts of towns and cities could fund the relief for smaller businesses and pubs. Business rates reforms introduced by the Government in April included a 2.8p business rates surtax on larger properties. Questions remain over how the full cost of Mr Burnham's proposal would be funded and whether large commercial property owners would face additional contributions.