Revealed: Labour’s £9 billion stealth business rates tax hike
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Burnham's announcement today won't make up for Labour's crippling
business rates raid Labour's hike is ninety times the amount of
rates relief announced today Conservatives will scrap business
rates for thousands of pubs, shops and restaurants on our high
streets The Conservatives are today [Thursday 23nd July]
exposing Labour's £9 billion business rates stealth tax hike which
is heaping misery on...Request free
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The Conservatives are today [Thursday 23nd July] exposing Labour's £9 billion business rates stealth tax hike which is heaping misery on struggling businesses, destroying jobs and driving up prices for consumers. The figures only became available thanks to the Conservatives tabling Parliamentary Questions to force the Government to come clean about the disastrous impact of its policies. The average independent pub has seen its business rates bill more than double since 2024 due to Labour's cuts in Retail, Hospitality and Leisure rate relief. During the Makerfield by-election, Andy Burnham pledged to shift the business-rates burden from high-street firms to the warehouses owned by online giants. But today's announcement fails to do that. In fact, Andy Burnham's pledge today is not properly funded. Today's announcement is also only applies to pubs, clubs and music venues. Not cafes, restaurants and high street retailers who are seeing their business rates spiral. Burnham's pledge today to reduce business rates on pubs, clubs and music venues by £100 million neglect the fact that Labour are actually hiking business rates up by ninety times that amount. In their 2024 Manifesto, Labour claimed that they would shift the business-rates burden from high-street firms to the warehouses owned by online giants and Rachel Reeves claimed to be enacting it at the 2025 Budget. But in practice, she introduced a new surcharge on all business properties with a Rateable Value of over £500,000, hitting larger shops, hotels, sports facilities and even zoos. Almost twice as many retail premises are now being hit by the surcharge than the distribution warehouses that it was supposedly meant for. This latest tax hike comes on top of Labour's Jobs Tax, Angela Rayner's employer red tape and soaring energy costs courtesy of Ed Miliband and his net zero obsession. It's little wonder that under Labour, unemployment has risen by nearly 300,000. There is only one party on the side of the pubs and other businesses that fuel our economy and create jobs, and that is the Conservatives. We will scrap business rates for thousands of pubs, shops and restaurants on our high streets. Sir Mel Stride MP, Shadow Chancellor, said: Keir Starmer and Rachel Reeves hiked taxes to pay for more welfare. Andy Burnham came into office with no plan, and so he is heading towards doing the same thing. Like all his promises so far, his plan for business rates is devoid of detail and represents yet another commitment for which the funding has not been set out. The relief announced today pales in comparison to the £9 billion Labour tax hike already underway. There is only one party with a serious, costed plan to ease the burden on businesses, and that is the Conservatives. We will scrap business rates for thousands of high street firms paid for by our £47 billion savings plan - and get Britain working again. Sir James Cleverly MP, Shadow Secretary of State for Housing, Communities and Local Government, said: "Labour have broken their promises and imposed crippling tax hikes on businesses. Now, their new leader is trying to distract from the damage. Labour have already heaped misery on the hospitality sector with their business rates raid. The Conservatives are the only party that will get bills down and deliver stronger high streets. Andrew Griffith MP, Shadow Secretary of State for Business, 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. ENDS Notes to Editors:
Labour Ministers admit business rates are soaring by £9 billion Parliamentary Questions by Conservatives have forced the Government to publish its forecasts for business rate receipts across England. This information has not previously been published by the OBR or HMT. These figures have been baked into the Spending Review.
Lords Hansard, 4 June 2026, PQ HL323, (link); Hansard, 29 June 2026, PQ11414, (link). Labour's 2024 manifesto pledged: Labour will replace the business rates system, so we can raise the same revenue but in a fairer way. This new system will level the playing field between the high street and online giants' (link). The reverse has happened. The high street is paying more, and tax revenue has done up. The Internet Warehouse' tax is a sham In 2024, Labour claimed that they would rebalance business rates by shifting the burden onto internet warehouses and online giants'. Andy Burnham is reheating this pledge. But in practice, the Labour Government introduced a new surcharge on all business properties with a Rateable Value of over £500,000. This surcharge is also hitting larger shops, supermarkets, hotels, sports facilities and even zoos. Almost twice as many retail premises are now being hit by the surcharge than the distribution warehouses that this was supposedly meant for. There are 20,930 properties with a Rateableabove £500,000 in England in 2026; of these, there are 3,480 retail properties, and 1,940 distribution warehouses. In no way is this just a tax on internet warehouses. Source: Valuation Office Agency data sources cited at: from Hansard, 8 January 2026, PQ102744, (link). Based on Table RVL_3_1 (all properties), Table RVL_3_2 (retail), Table RVL_SCAT_1_1 (warehouse). Distribution warehouses' is the terminology used by the Government: Hansard, 20 December 2024, PQ 20222, (link).
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