Will Andy Burnham save the high street?

In granting Andy Burnham a decisive victory in his local by-election, the voters of Makerfield became the kingmakers in what is a dramatically executed overthrow of the current Labour leadership. 

 

Now that Burnham is the front-runner in the leadership race, the focus is shifting on whether he will deliver on the principles he has become well known for as “king of the North” and the promises made on the Makerfield campaign trail. 

 

The former Greater Manchester mayor is associated with the eponymous political strategy coined as ‘Manchesterism’, emphasising devolution and reintroducing nationalisation, strategic investment and a commitment to addressing inequality across the country. 

 

“Andy is undoubtedly a place-first person, which has to be great for the built environment,” says Mark Robinson, Chair of Radix Big Tent, and former chair of the government’s High Streets Task Force. “He deeply understands the role of community and the central role that place plays in how people feel about their lives.” 

 

A policy paper published on Monday by the Mainstream faction of the Labour party – a group closely associated with Burnham and his allies – set out a broader economic strategy that is expected to influence his economic programme should he become Prime Minister, according to The Guardian. 

 

 

The Productive State - A Framework for Manchesterism includes policy for public ownership in electricity generation and transmission; a network of regional public housing corporations operating at the scale of the postwar council-home building programme; regional transport networks and a national care service. 

 

Using public land and borrowing at the public cost of capital would, according to the paper, limit the speculative land market’s dominance on supply and ease affordability. Other policies discussed include putting the entire £39bn affordable housing budget towards social housing and setting rents to income rather than market rate, to turn shelter into an “entitlement, not a commodity.” 

 

Over his tenure as Mayor, Burnham’s approach has curried favour with developers, masterplanners and built environment professionals in Manchester, and many are optimistic that Burnham has the temerity to accelerate the change that the field needs if he becomes Prime Minister. 

 

“His rare commitment to co-designing policy alongside experts and communities offers a proven, scalable blueprint for national renewal,” says Kate Pickett, professor for the public understanding of social science at the University of York. “But if he becomes our next prime minister, he will need strong support to be able to prioritise social and economic policies that are demonstrably effective and cost-effective but politically challenging.”

 

Burnham’s plans for high street regeneration have garnered some scepticism within the industry, with fears proposed measures will not give enough relief to small businesses to avert closures and reverse fortunes. 

 

One of the defining debates during the Makerfield by-election was the state of high streets across Greater Manchester. Journalists descended on the northern constituency, documenting local ire about ghostly shop fronts, recent closures and the loss of iconic Wigan businesses. 

 

This political problem is not unique – according to YouGov, only a third of Britons believe their high street is in a good state.

 

 

When questioned on how he would address voters’ high street concerns with greater parliamentary powers, Burnham told Novo Social he would change business rates so taxes on warehouses fund the slashing of rates by 20% on pubs and music venues. 

 

Burnham has said he wants to raise the threshold at which business rates kick in, so that smaller high street shops don’t need to pay.

 

Burnham’s policy references Labour’s pre-existing plan to gradually “replace” business rates with a new system of business property taxation to “level the playing field” between the high street and online giants.

 

In April 2026, the temporary relief of business rates put in place during Covid came to an end, replaced by Chancellor Rachel Reeves with a new rating list. After trade bodies warned this would trigger a wave of high street closures, the Treasury announced a major financial support package for pubs and music venues, with further measures under review for hotels. 

 

The Treasury admitted that it had not fully grasped the impact of an end to rate relief. The pandemic era discount expired on the same day that the National Minimum Wage increased by 4.1%. This double hike was painful for many in the industry, prompting reports that 3 pubs would be closing per day across the country.

 

 

Robinson believes “broken business rates” needs to be looked at “root and branch”, warning a “tokenism” of policies could undermine the relationship between the government and the sector. 

 

Kate Gerbich, Communications Director at Altrincham BIDs, says “policies that help level the playing field between online and bricks-and-mortar operators are likely to receive a positive hearing across much of the town center industry”. “That said, the detail will matter enormously” she told The Developer, as “business rates are only one component of the challenges facing town centers.” 

 

Gerbich remains optimistic, “provided they are delivered in a way that is practical, sustainable and does not create unintended consequences elsewhere in the country” 

 

Ros Morgan, chief executive of Heart of London Business Alliance, which represents over 500 businesses in the West end of Central London, feels Burnham is right to address the current "unsustainable" tax system for businesses, describing rates the “number one issue for our members at the moment.” 

 

However, Morgan says all high street businesses, not just smaller outlets, need relief. Morgan suggests a “hybrid business rate, with a modest levy on online sales funding lower rates for businesses with physical premises” would go much further than the current “piecemeal solution” offered by the Labour Party. 

 

"A new Prime Minister and Chancellor need to deliver what Labour promised in its manifesto: Real rates reform.” 

 

During the Makerfield byelection, Burnham also called for councils to be given greater enforcement powers to prevent the “over-concentration” of business such as vape shops and to crackdown on ‘dodgy’ town centre shops, according to Manchester Evening News.

 

During a campaign stop in Ashton, Burnham said: “People in Makerfield have had enough of dodgy shops blighting our high streets and illegal e-bikes making their lives a misery. Today’s announcement is about showing local residents ‘I’m on your side’.”

“I’m calling for a blitz on the organised crime blighting local high streets, and push for new powers to stop those causing misery to our local communities.”