Andy Burnham’s proposal to expand Small Business Rates Relief—costing £880m annually—has ignited scrutiny over funding mechanisms and broader economic implications. The plan, which would lift 140,000 small businesses from paying rates, hinges on raising levies on large warehouses, particularly those of online retailers like Amazon (NASDAQ: AMZN).
The Bottom Line
How the Tax Shift Unfolds
Ryan’s analysis models Burnham’s plan to raise the Small Business Rates Relief threshold from £12,000 to £18,000 in rateable value. This would cut annual liabilities by £880m, according to the consultancy. However, the proposal relies on increasing rates for large warehouses, which already face a 2.8p surtax under the 2024 manifesto. UK Government
“Supporting small businesses is a great policy objective,” said Alex Probyn of Ryan. “The concern is how that is funded if things have to be revenue neutral.” The firm’s calculations suggest larger commercial properties—already contributing more via surtaxes—may face further pressure. Ryan
| Policy Component | Rateable Value Threshold | Estimated Cost |
|---|---|---|
| Current Relief | £12,000 | N/A |
| New Relief | £18,000 | £880m/year |
| Warehouse Surcharge | £500,000+ | 2.8p per £1 |
The Ripple Effects on Supply Chains
Amazon 2025 Report
Morgan Stanley
This dynamic could exacerbate inflationary pressures. The Office for National Statistics (ONS) reported a 1.2% rise in retail sales in May 2026, but Bloomberg Economics notes that a majority of retailers face “moderate to high” cost-push inflation.
