Andy Burnham has unveiled plans for a major overhaul of business rates, including a proposed "Amazon tax", as part of his vision to revive Britain's struggling high streets and support local businesses.
Speaking to Andrew Marr on LBC, the prime minister-in-waiting said he would honour Labour's 2024 manifesto pledge not to increase income tax, VAT or employees' National Insurance contributions. However, he argued there was still scope to reform business taxation.
Burnham said he wants to increase business rates on large distribution warehouses used by online retail giants such as Amazon, while reducing or removing business rates for pubs and many high street businesses.
He proposed a 20 per cent reduction in business rates for pubs and said some smaller high street firms could be taken out of the system altogether.
"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," Burnham said.
He argued that businesses such as pubs, cafés, restaurants, coffee shops and hairdressers provide important social value and deserve greater government support because they help keep communities connected.
Despite growing speculation over his future Cabinet, Burnham said he has not yet chosen who would serve as chancellor if he becomes prime minister later this month. Names linked with the role include Energy Secretary Ed Miliband and former Health Secretary Wes Streeting.
Explaining the delay, Burnham said he wanted to focus on setting out his policy agenda before discussing ministerial appointments.
"I've very deliberately said I'm going to set out a new direction for the country first," he said, adding that Westminster had become too focused on personalities rather than policies.
Burnham also signalled a willingness to work across party lines where possible. He suggested he could find common ground with Conservative leader Kemi Badenoch on tackling grooming gangs and backed calls for the ringleader of the Rochdale grooming gang to be deported.
He said politics needed a different approach after years of public frustration, admitting that his own generation of politicians had "failed" to deliver enough for voters.
As prime minister, Burnham said his government would be guided by three principles: putting places before party, solving problems instead of scoring political points, and focusing on long-term decisions rather than short-term politics.
When asked whether he would support a bank holiday if England won the men's World Cup, Burnham stopped short of making a commitment.
"It would be fantastic," he said. "We struggled to beat Congo, so let's not get ahead of ourselves."
The proposals drew immediate criticism from the Conservatives. Shadow Chancellor Sir Mel Stride warned that businesses should prepare for "another Labour tax bombshell", arguing that higher business taxes could damage investment and confidence. He also accused Burnham of failing to address rising welfare spending while leaving the door open to further tax changes.
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