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Burnham rates plan could cost £880m, hit large retailers
Andy Burnham's plan to lift 140,000 small shops out of business rates would cost £880m a year, hitting large retailers. The autumn budget will decide who pays.
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Andy Burnham's proposal to overhaul business rates in favour of small high street shops would cost roughly £880m a year, according to analysis from global tax firm Ryan. The plan would lift more than 140,000 additional small premises out of business rates entirely by raising the threshold for full relief.
The cost estimate lands as UK retail stocks already face pressure from weak consumer spending and rising operating costs. For investors, the plan introduces a new variable: who pays for the shortfall.
The straightforward case is that small shops win. Larger retailers with big property portfolios lose. The £880m hole has to be filled somewhere. The most likely source is higher rates on larger properties. That would hit companies with extensive high street footprints.
The more detailed case depends on three things: how the government chooses to recover the cost, the lease structures of individual retailers, and whether the plan becomes law in its current form.
Ryan's analysis models the cost based on current rateable values and the proposed threshold increase. It does not specify a funding mechanism. That leaves room for negotiation. The Treasury could absorb part of the cost through a central grant. It could shift the burden entirely onto larger ratepayers. Each path produces a different outcome for retail stocks.