Andy Burnham’s proposed ‘Amazon tax’ and its implications for pubs and licensed venues

The Independent reported that Andy Burnham has restated Labour’s intention to reform business rates in a way that shifts the tax burden away from high‑street and hospitality businesses and towards large online retail warehouses. Burnham confirmed that Labour would maintain its pledge not to increase income tax, VAT or national insurance, but noted that business rates remain open for reform.

Burnham outlined a model often described as an “Amazon tax”, under which major fulfilment centres and logistics hubs would face higher business‑rates liabilities. He argued that these facilities currently pay proportionally less than high‑street premises despite occupying large sites and benefiting from the growth of online retail. In contrast, he said that pubs and similar high‑street businesses could see business‑rates reductions of around 20%, and that some categories of high‑street premises might be removed from the business‑rates system entirely.

For pubs, bars, restaurants, night‑time venues and other licensed premises, the proposal represents a potential reduction in fixed operating costs. Many operators have argued that the current system disproportionately affects businesses that rely on physical premises and footfall. A rebalancing of rates could improve financial stability for venues facing rising energy costs, staffing pressures and post‑pandemic debt.

Burnham described hospitality venues as businesses that provide social value and contribute to local communities. His comments align with long‑standing concerns raised by industry bodies that the existing rates system disadvantages bricks‑and‑mortar hospitality compared with online retail.

The Independent notes that Conservative shadow chancellor Mel Stride criticised Burnham’s remarks, warning that any tax increases—even targeted ones—could undermine business confidence. Burnham rejected this characterisation, saying the intention is to support socially beneficial businesses rather than increase overall taxation.

Burnham also referenced principles he developed while governing in Manchester, including prioritising place over party and focusing on long‑term problem‑solving. For hospitality operators, this suggests a policy direction aimed at strengthening high‑street activity and supporting venues that contribute to local economies.