Burnham’s Promises: A Mixed Bag for Small Businesses

Andy Burnham’s recent comments on business rates relief have sparked debate about his government’s stance on supporting high street businesses. His plans to slash tax for pubs and other similar venues are a welcome move, but the promise to go “further” on business rates is tempered by the harsh reality of limited room for manoeuvre.

Burnham’s desire to cut VAT on electricity for small businesses is a step in the right direction, but it only addresses one aspect of the issues plaguing these enterprises. The 20% rates relief for pubs and similar venues may have been among the first announcements made when he came into office, but its impact remains to be seen.

The Prime Minister’s words on the “cost of doing business being too high” resonate with many small businesses struggling to stay afloat in the current economic climate. However, his admission that he won’t bring forward policies he can’t fully fund raises questions about the government’s commitment to supporting these businesses. Burnham acknowledges the added pressure from his predecessor’s decision to hike national insurance contributions for employers.

The fate of small businesses hangs precariously in the balance, with the budget looming on October 28. There’s a sense of urgency around these issues, and it remains unclear whether Burnham’s promises will translate into concrete action or remain nothing more than empty words.

A Mixed Record

Burnham’s tenure so far has been marked by a mixed record on supporting small businesses. While his VAT cuts on electricity are a positive step, the broader context is one of uncertainty and limited resources. The government’s ability to deliver meaningful support for these enterprises remains unproven.

The 20% rates relief for pubs and similar venues is a nod towards addressing the specific struggles of these industries, but it’s unclear whether this will trickle down to other businesses struggling to stay afloat. Burnham’s promise to go “further” on business rates lacks concrete plans or timelines, leaving many questions unanswered.

The Weight of History

The current economic climate bears an uncanny resemblance to the 2008 financial crisis. Then, as now, small businesses were among the hardest hit. Governments at the time struggled to respond effectively, and the consequences were far-reaching. Burnham’s government must learn from this history or risk repeating the mistakes of the past.

To tackle the root causes of these issues – high business rates, increasing energy costs, and national insurance contributions – requires a willingness to address the systemic problems facing small businesses. Until then, their fate will continue to hang precariously in the balance.

A Path Forward

Burnham’s words on responding to the challenges faced by small businesses are laudable, but they need to be matched with concrete action. The budget on October 28 presents a crucial opportunity for his government to deliver meaningful support for these enterprises. Whether he will seize this chance remains to be seen.

The stakes are high: small businesses are the backbone of any economy, and their struggles have far-reaching consequences. Burnham’s promises must translate into action if they’re to have any credibility. The fate of small businesses hangs precariously in the balance – will he deliver?