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Burnham hails importance of local businesses as he issues update on support plans

The Independent ·

Andy Burnham said the Government will consult small businesses on further support, as he reiterated that independent firms are central to local communities. The proposed engagement is intended to strengthen cooperation with small businesses and help them plan for the longer term, with ministers linking the approach to job creation and growth.

The Government has already announced a 20% business rates relief for hospitality venues including pubs, clubs and live music sites, alongside planned VAT cuts on electricity. Burnham said broader business rates support for high-street firms could be considered at the Budget on 28 October, while UKHospitality welcomed the focus on employers in coastal and rural areas.

  • Government plans further consultation with small businesses.
  • Hospitality venues are set for 20% rates relief.
  • Wider high-street support may feature in October’s Budget.

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Business rates are a tax on the properties used by many businesses, while VAT is a tax on goods and services. Changes to these taxes can affect firms’ costs, including pubs, clubs and live music venues, which often serve as local employers and meeting places.

Andy Burnham is a UK politician who has highlighted the role of independent businesses in communities. Hospitality trade groups such as UKHospitality represent employers in the sector and speak to government on issues affecting their members.

Both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

Small businesses form the backbone of local communities and deserve Government support to navigate current challenges. The 20% business rates relief and VAT cuts provide immediate financial breathing room, whilst the consultation framework ensures business voices directly shape future policy. By targeting hospitality, coastal and rural areas, the Government recognises where economic pressures bite hardest and where local employment matters most to community resilience.

The case against

These measures, whilst appreciated by affected sectors, risk obscuring more fundamental questions about small business viability in the current economic environment. Business rates relief addresses symptoms rather than the underlying competitiveness disadvantage small traders face against larger corporations and online platforms. Without broader structural reform of business taxation and regulation, selective sectoral support may prove insufficient, and consultation without binding commitments risks being perceived as performative rather than transformative.

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