Andy Burnham has signalled that he will introduce a so-called “Amazon tax” with a massive reform of business rates in a bid to save Britain’s high streets.
The former Manchester mayor, now prime minister in waiting, told Andrew Marr on LBC that he plans to stick to Labour 2024 election manifesto promises of not raising income tax, VAT or national insurance personal contributions.
But he said he would look at hiking business rates on the giant warehouses which are emerging to service massive online retail companies like Amazon, while lifting high street shops and pubs out of having to pay the business rates.
However, the recently-elected Makerfield MP said he is yet to decide who will be his chancellor when he is expected to be unveiled as Britain’s next prime minister on 20 July, despite speculation it could be energy secretary Ed Miliband or former health secretary Wes Streeting.
Explaining why he has not picked someone to steer his economic policy, he said: “It's been a little frustrating for me in the last sort of two weeks, because Westminster goes into its normal mode, and it wants to endlessly speculate about personalities before policy and before direction. I very deliberately have said ‘no, I'm going to set out a new direction for the country first.’”
On taxes though, he noted: “I stick by the manifesto and the promises that it made. So, let me be absolutely clear about that.”
However, he added: “There is some room within that manifesto for movement on tax, so if you take business rates, for instance, 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, and I've proposed a 20 per cent cut and lift some high street businesses out of business rates altogether.
“I think it's important to, if you like, prioritise and reward the businesses that bring social benefit, the businesses that bring people together, the bars, the restaurants, the coffee shops, the hairdressers, because the high street really needs to get more of our attention.”
Mr Burnham also insisted he plans to work with other parties wherever he can and suggested that he could find common cause with Tory leader Kemi Badenoch in taking a much tougher approach to grooming gangs.
On Wednesday, he added his voice to demands that the ring leader of the Rochdale grooming gang is deported.
He said: “I often have people say to me, I just scream at the radio, tell us what you would do, and I kind of feel politicians have to answer that call from the public, say what we'll do, but then also work to find common ground with other parties where we can.
“Britain does need something different. We've had a decade where politics really has not been working for people at all. We can't do more of the same.”
He admitted that his generation of politicians has “failed” and needs to offer something better.
In a dig at Sir Keir Starmer’s style of answering questions by talking about the record of previous Tory governments, he added: “You can't go around pointing fingers when you haven't been good enough.”
He promised to rule by three principles which he has developed in Manchester.
“I've said place first, not party first, problem solved. Solving, not point scoring, long term, not short term, and I think those are three good principles to underpin British politics at a national level going forward.”
Mr Burnham would not confirm though that he would support a bank holiday if England wins the men’s world cup.
Saying it “would be fantastic”, he noted: “We struggled to beat Congo so let’s not get ahead of ourselves.”
Tory shadow chancellor Sir Mel Stride said: “Britain needs to brace for yet another Labour tax bombshell from Andy Burnham.
“Despite more than £60bn of tax rises under Rachel Reeves, sending the tax burden to a record high, Burnham thinks there is still ‘room for movement on tax’. Unless he urgently rules out raising taxes, we will see business and investor confidence draining in another summer of damaging speculation.
“Instead of raising taxes Labour should be getting a grip of spending - but Andy Burnham won’t touch the ballooning benefits bill. He will double down on all the mistakes Labour have already made.”
