Not a Business Rescue, but a Political Manoeuvre

Andy Burnham announced a 20% reduction in the tax on commercial activity, which is expected to reduce the burden on businesses and prevent establishments from closing. The measure will affect 32,000 pubs and live music venues. According to government calculations, it will save a typical pub around £1,100 a year. Nevertheless, representatives of the hospitality industry have already criticised the measure. The Independent cites experts who described it as “a drop in the ocean” and “a political manoeuvre”. Moreover, the tax cut is only planned to take effect from April 2027, and many venues simply will not survive until then.

The Illusion of Solving Problems

Many social media users say that Labour first creates problems and then creates the appearance of solving them.

Consumers Will Pay for Everything

According to various estimates, the tax cuts for smaller companies will cost £880 million a year. Burnham proposed offsetting the discounts on business rates by raising taxes on warehouses owned by major retailers.

Billionaire and Frasers Group owner Mike Ashley called Burnham’s plan ‘delusional’. The businessman sent a letter to the Prime Minister, quoted by the Financial Times. "Rather than address the real underlying issues of how the country's financial affairs are managed, and supporting growth and entrepreneurialism in business, it is easier for you to pick topics which provide good media soundbites and the old salve of yet more regulation – which is not what the country needs to become competitive. Shortsighted or populist reactions to underlying business challenges are not the answer", Mike Ashley stresses.

Accusations of populism against Andy Burnham are coming from all sides. The author of the Engwithandr account cites survey data according to which residents see vape shops and betting shops as the main signs of High Street decline, while hanging flower baskets and bakeries are seen as signs of improvement, and jokes: ''If Burnham sees this? I'd wager good money that a little fund will be created to get all our high streets decked out with hanging baskets by, say, the end of March next year''.

The sceptical attitude towards the Prime Minister’s actions is not without reason. For example, he opened another government office in Manchester in order to distribute resources more evenly across the country, but the only economic effect was an additional £49,000 in expenditure.