LONDON: Prime Minister Andy Burnham said Wednesday his government will do what it can to help lower costs for businesses, while cautioning that he is operating against the backdrop of a “difficult financial outlook.”
In an interview with BBC Radio’s “Wake Up to Money” programme, Burnham said the government’s budget, due Oct. 28, would examine business rates, a tax levied on shops, offices and other commercial premises, more broadly.
“I know the cost of doing business is too high, particularly for smaller businesses,” Burnham said. “I wouldn’t want to promise the earth and say all can be solved because I think people can see I’m facing a difficult financial outlook and I won’t bring forward things that I can’t fully fund.”
The prime minister also said he is considering remodelling Britain’s rail fares system to benefit the public, including possible expansion of railcard eligibility. He has previously called some rail prices “outrageously” high and has already announced an extension of the 16-17 Saver Railcard, which will take effect Aug. 17.
Burnham repeated his long-term goal of increasing state control over water, energy and housing services as a way of lowering costs to households.
“I’m signalling going further on business rates,” Burnham said. “So there are things that we can do, and we’ll do everything that is possible for us to do. But I think everyone knows that I’m in a position with limited room for manoeuvre.”
Recent opinion polls show Burnham has fared well in the eyes of voters in his first few weeks in the job, which have been marked by relatively small but electorally popular reforms. These include a crackdown on high street vape shops, capping bus fares, cutting sales tax on electricity bills, lowering business rates on pubs and music venues, and curbing misleading product discounts and subscription traps.
Burnham said this strategy, an “accumulation of smaller things”, could add up to help ease pressure on household finances.
He has previously ruled out tax increases on working people but has not ruled out other tax hikes to enact reforms to social care. He and his finance minister, John Healey, have promised to stick to the government’s fiscal rules, limiting the scope for additional borrowing.
