Burnham Floats Warehouse Tax Hike To Fund Cuts For High Street

Andy Burnham, UK lawmaker, delivers a speech at the People's History Museum in Manchester, UK, on Monday, June 29, 2026. The former Greater Manchester mayor will set out how he'd "lift Britain back up" by handing more decision making powers to local authorities, overhauling procurement to boost British jobs and tackling youth unemployment. Photographer: Anthony Devlin/Bloomberg Photo by Anthony Devlin /Bloomberg

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(Bloomberg) — Andy Burnham said he would increase business rates on warehouse-based companies in order to lower costs for high street shops and bars as he set out details of what he would do if he continues on his path to becoming the next prime minister.

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In his first interview since becoming the sole candidate to replace Keir Starmer as Labour Party leader, Burnham told LBC Radio he believed there was room to change some taxes without breaking with his party’s election manifesto promises.

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He said he was “not indisciplined when it comes to the public finances” and pointed to his record as mayor of Greater Manchester where he said the economy was “rock solid” which inspired “business confidence.” 

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Burnham said he wanted to help support smaller businesses, which he said are paying too much for energy, pledging to come forward with a proposal for “more public control of water, energy and transport.” 

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There is a case for lifting some high street firms, such as in the hospitality industry, out of business rates all together, he said. 

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But he said larger warehouses on the outskirts of urban centres, such as those owned by Amazon.com Inc., should pay more.

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“I believe there is a case for higher business rates on warehouses and the major developments we see on the outskirts of our cities, so that we can cut business rates for pubs, and I proposed a 20% cut, and lift some high street businesses out of business rates altogether,” he said.

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“I say some, and not all, because I think it’s important to, if you like, prioritize and reward the businesses that bring social benefit, the businesses that bring people together, the bars, the restaurants, the coffee shops, the hairdressers, because the high street really needs to get more of our attention,” Burnham added.

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This week Starmer set out details of his government’s long-delayed defense investment plan and came under immediate pressure over a funding black hole of £5 billion ($6.6 billion) which is yet to be found.

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Burnham said he was not informed that the strategy was not fully funded before he privately gave it his backing. He committed, however, to funding the investment plan in full if he is confirmed as the country’s next prime minister in just over two weeks’ time.

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“What I can say to you tonight is, I will take my responsibilities fully to fund the defense investment plan,” Burnham said. “If I am in the position to do so, I will take those responsibilities extremely seriously. No compromise on the security of the nation.”

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