Burnham admits the cost of doing business in the UK is too high
Key Points
- Prime Minister Andy Burnham has indicated that he will give further relief to businesses in his inaugural budget at the end of October.
- The 20% rates relief for venues was one of the first pronouncements that Burnham made upon coming into office.
- At the same time, Burnham couched the response by noting that he had limited wriggle room to make wholesale cuts.
- In a somewhat unusual move, Burnham admitted that the decision by his predecessor Keir Starmer and Chancellor Rachel Reeves to increase National Insurance (NI) contributions was something of a misstep.
Prime Minister Andy Burnham has indicated that he will give further relief to businesses in his inaugural budget at the end of October. This comes after he announced plans to cut taxes on pubs, clubs, and other venues.
The 20% rates relief for venues was one of the first pronouncements that Burnham made upon coming into office, and form part of a series of cost-of-living measures the Prime Minister has introduced or plans to introduce.
“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,” Burnham told BBC Radio 5 Live’s Wake Up To Money programme.
Burnham said that he understands that the cost of doing business in the country is too high, and indicated that further relief was coming.
“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 said.
At the same time, Burnham couched the response by noting that he had limited wriggle room to make wholesale cuts.
“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. But I think everyone knows that I’m in a position with limited room for manoeuvre,” Burnham said.
In a somewhat unusual move, Burnham admitted that the decision by his predecessor Keir Starmer and Chancellor Rachel Reeves to increase National Insurance (NI) contributions was something of a misstep and put added pressure 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.
