Andy Burnham proposes Amazon tax to fund cuts for pubs and high streets

Andy Burnham, the newly‑elected Labour MP for Makerfield, used his first media interview since winning the seat to outline a “so‑called ‘Amazon tax’” that would reshape business‑rates policy across the country. Speaking to LBC’s Andrew Marr on 2 July 2026, the former Manchester mayor said he would keep Labour’s 2024 manifesto pledge not to raise VAT, income tax or National Insurance, but would “look at hiking business rates on the giant warehouses which are emerging to service massive online retail companies like Amazon” in order to fund a 20 per cent cut for pubs, clubs and music venues.

"I stick by the manifesto and the promises that it made. So, let me be absolutely clear about that, but there is some room within that manifesto for movement on tax."

Media additions

Andy Burnham, former Manchester mayor, via AOL

Burnham added that the reform would also raise the threshold for paying business rates for “smaller, independent hospitality, leisure and retail companies” – a change he says has not occurred since 2017. The extra revenue, he said, would come from “higher levies on giant warehouses operated by online firms such as Amazon” and from owners of vacant high‑street properties.

He framed the proposal as a way to “prioritise and reward the businesses that bring social benefit, the businesses that bring people together – the bars, the restaurants, the coffee shops, the hairdressers”. The plan, he argued, would lift high‑street shops and pubs “out of having to pay the business rates”.

Political backdrop

Burnham’s comments arrive at a moment when the Labour Party is juggling its defence commitments with fiscal discipline. Sir Keir Starmer announced a £15 billion increase in defence spending earlier this week, but did not specify how the extra cash would be sourced. The Yahoo report notes that “whoever Burnham chooses to replace Rachel Reeves as chancellor will have to find at least £4.7 billion in savings from other departments when they deliver their first Budget in the autumn”.

Burnham, who has yet to name a chancellor, said speculation that the role could go to Energy Secretary Ed Miliband or former Health Secretary Wes Streeting is “a little frustrating”. He explained:

"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 endlessly to 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.'"

Andy Burnham, via AOL

The interview marked Burnham’s first televised appearance since the by‑election that secured his seat, a campaign during which he pledged to “cut business rates for pubs and lift some high‑street businesses out of business rates altogether”.

Defence funding and fiscal constraints

When pressed on the defence gap, Burnham said he was not involved in the internal discussions that produced the £15 billion figure, but he would “take my responsibilities fully to fund the defence investment plan, if I am in the position to do so, I will take those responsibilities extremely seriously”.

"What I can say to you tonight is I will take my responsibilities fully to fund the defence investment plan, if I am in the position to do so, I will take those responsibilities extremely seriously."

Andy Burnham, former Treasury minister, via Yahoo News

Burnham also warned against “crude cuts to benefit levels that just put people who are struggling in even worse poverty”. Instead, he suggested reforming the education system to support technical qualifications and expanding work placements for 16‑year‑olds, alongside a pledge to improve mental‑health support for those in work.

Cross‑party overtures and social policy

Beyond economics, Burnham signalled a willingness to cooperate with the opposition on law‑and‑order matters. He said there could be “common cause” with Tory leader Kemi Badenoch on a “much tougher approach to grooming gangs” and added his voice to calls that the ringleader of the Rochdale grooming gang be deported.

His broader political philosophy was summed up in three “principles” he said he developed while mayor of Manchester: “place first, not party first; solving, not point‑scoring; long term, not short term”. He hinted that his new No 10 office would sit at a proposed government digital campus near Manchester Piccadilly Station.

Opposition reaction

The Treasury shadow, Sir Mel Stride, dismissed the proposal as “another Labour tax bombshell”. In a statement, he warned that “unless he urgently rules out raising taxes, we will see business and investor confidence draining in another summer of damaging speculation”.

"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'."

Sir Mel Stride, Conservative shadow chancellor, via AOL

Stride also accused Labour of “double‑down on all the mistakes Labour have already made” and argued that the party should focus on curbing spending rather than seeking new revenue streams.

What comes next

Burnham is expected to be sworn in as prime minister on 20 July 2026. His first major fiscal test will be the autumn Budget, where the new chancellor must demonstrate how to free at least £4.7 billion for the defence uplift while honouring the promise not to raise income tax, VAT or National Insurance.

If the “Amazon tax” proceeds, it will be the first overhaul of business‑rates policy since the threshold change of 2017. The proposal will also require legislation to levy owners of empty high‑street premises, a detail that has yet to be fleshed out in public debate.

Stakeholders on both sides of the aisle will be watching how Burnham balances the competing demands of preserving high‑street vitality, financing a larger defence budget, and maintaining Labour’s fiscal credibility ahead of the first full sitting of his government.