𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

It’s no secret that high streets up and down the UK are struggling. Shops and banks are shutting at alarming rates and businesses, in particular those that are independently-owned, are crying out for more help from the government.

All eyes will be on Andy Burnham as he steps into Downing Street as Prime Minister on Monday (July 20), with the nation watching to see whether he can finally breathe new life into our struggling town centres and cities. The good news is that the Makerfield MP has already pledged to level the playing field for high street shops and independent businesses. The bad news is that his plans could backfire, causing more damage to the local shopping economy.

I’ve seen first-hand the state of our once-proud high streets. During visits to coastal and inland towns over the past 12 months, it has become increasingly clear how Labour’s increases to the National Living Wage and employers’ National Insurance contributions have hit businesses.

Firms of varying shapes and sizes have been forced to shut as soaring costs have pushed many owners to breaking point. They have cried out for help and the incoming Prime Minister has answered their calls – or so it seems.

Burnham has promised to overhaul the “broken” business rates system by lifting the threshold for 100% small business rates system from a rateable value of £12,000 to £18,000. He also intends to increase levies on out-of-town warehouses and developments operated by tech giants such as Amazon.

As well as helping shops, the former Manchester Mayor has pledged a 20% cut in business rates for pubs, clubs and music venues. He has also suggested targeting the owners of empty high street units to discourage neglect.

While these ideas appear positive on the surface, it seems Burnham will just be shifting the burden from smaller businesses to larger businesses. This could stifle the overall economy as these bigger corporations provide the most jobs and tax revenues.

Most small independent businesses rely on bigger partners for supply. If one link in that chain weakens, the impact can ripple throughout the economy, putting businesses of every size at risk.

Likewise, increasing taxes on large warehouses and online retailers may inadvertently impact sellers on the high street. If those increased costs are passed down the supply chain, the smaller firms will suffer as a result.

The last thing we need is a situation where large companies are struggling to the point where they resort to widespread layoffs. There must be a way for big and small businesses to co-exist and thrive; we can’t just sacrifice one to benefit the other.