Andy Burnham live: New PM warned spending spree ‘will force tax rises’ as rate cut for pubs announced – UK Times

Owner of the Driftwood Spars pub in St Agnes, Cornwall, said the business rate cuts do not go far enough.

Lou Treseder told the Independent it will cover less than an average days running cost.

“It does not go far enough. I don’t want to sound ungrateful, every little helps, but this will help out for maybe survival for a week in the winter,” she said.

“They reckon it will help on average of £1,100 a year, this is less than an average days running cost of my pub.”

The Independent’s politics reporter Athena Stavrou reports:

The Conservatives have accused Andy Burnham of being “found wanting” on detail and funding plans for his latest policy announcement aimed at slashing costs for pubs.

Shadow secretary of state for business Andrew Griffith claimed that the plans will “undoubtedly” lead to tax rises on businesses and families.

“Whilst any support for Britain’s hard-pressed businesses is welcome, once again this government has been found wanting on both the detail and funding for this policy,” he said.

“We are days into the Burnham premiership and as yet the Government has not been able to credibly explain how it will fund any one of its ‘new’ policies. That undoubtedly means more Labour tax rises that families and businesses across the country cannot afford.

“Only the Conservatives have a fully funded plan, backed by a £47 billion savings plan, to abolish business rates entirely for the vast majority of high street businesses.”

Economists have warned taxes will need to rise to fund Andy Burnham’s spending spree.

The Chancellor, John Healey, may be forced to raise taxes “significantly” to pay for the cost of living promises made by the prime minister.

Already he had announced a VAT cut to electricity bills and capped bus fares to £2 from January. The prime minister has also promised to fix social care and ease the cost of living.

James Smith, the chief economist at the Resolution Foundation, told the Telegraph: “Depending on the price tag for all these things, then it would have to be a significantly revenue-raising Budget to pay for some of those big-ticket items.”

The business rate cuts alone are expected to cost the government around £100m per year.

“Depending on the price tag for all these things, then it would have to be a significantly revenue-raising Budget to pay for some of those big-ticket items,” James Smith, the chief economist at the Resolution Foundation said.

Andy Burnham must detail how he will pay for his policies including the business rates cut, the Conservatives have said.

Tory shadow business secretary Andrew Griffith said: “Whilst any support for Britain’s hard-pressed businesses is welcome, once again this Government has been found wanting on both the detail and funding for this policy.

“We are days into the Burnham premiership and as yet the Government has not been able to credibly explain how it will fund any one of its ‘new’ policies.

“That undoubtedly means more Labour tax rises that families and businesses across the country cannot afford.

“Only the Conservatives have a fully funded plan, backed by a £47 billion savings plan, to abolish business rates entirely for the vast majority of high street businesses.”

Gary Lineker and 100 British-based millionaires have written a letter calling on Andy Burnham to tax their wealth more.

The letter, organised by Patriotic Millionaires UK, says: “We want you to tax us. We can afford it. We’re not talking about higher taxes on those who get up and go to work for their income every day, but on the very richest whose income is derived from the wealth they hold.”

It tells the prime minister that millionaires are a “patriotic bunch” who “love this country and we want it to succeed”.

“As we embrace this new road – please consider taxing us properly as our contribution to it. We love this country. It’s time for a better Britain; it’s time for everyone here to feel Great Britain. It’s time to tax us, the super rich,” the letter says.

Gary Lineker has joined more than 100 British-based millionaires in calling on Andy Burnham to tax their wealth more, telling the new prime minister: “We can afford it”.

On Thursday, a group of over 100 UK-based millionaires, including Lineker, screenwriter Richard Curtis, novelist Val McDermid, and ex-City trader Gary Stevenson signed a letter urging Mr Burnham to tax their wealth.

Andy Burnham has said he refuses to stand by and watch “cherished local spaces disappear.”

Mr Burnham has announced a 20 per cent business rate cut for pubs, clubs and live music venues. But business rate cuts alone are expected to cost the government around £100m per year.

“I won’t stand by while these cherished local spaces disappear, replaced by boarded-up windows and ‘For Sale’ signs,” he said in a post on X.

“They’re the heart of our communities and it’s time we backed them.”

Sacha Lord, night time economy advisor, has praised the 20 per cent cut in business rates that will help 32,000 venues.

“Finally, we have a PM who listens and cares about Hospitality,” he said in a post on X.

Soft drinks company founder says the business rate cut “won’t make any material difference.”

Steve Perez, founder of soft drinks company Global Brands and an owner of two hotels, told the Today programme: “It’s a little bit like the supermarkets putting up the prices and then saying they’ve reduced them”.

Although hotels are not included in the announcement he does see it as a “glimmer of hope that the government gets it”. But he would prefer to see a sector-wide cut in VAT, to help businesses invest and employ more people.

Andy Burnham has announced plans to slash business rates for pubs, clubs, and live music venues across England, as he continues his policy blitz to cut costs for the public in his first week as prime minister.

The new prime minister announced venues will benefit from a 20 per cent cut in business rates from April next year as he seeks to “bring hope back across the country”.