Labour: Keir Starmer pledges to cut business rates and energy bills for small businesses

Labour has pledged to cut business rates and energy bills for businesses to revive the British high street, party leader Sir Keir Starmer has revealed.

The Labour leader and shadow Chancellor Rachel Reeves will visit Great Yarmouth to launch the new five-point plan to revitalise businesses on Wednesday 12 April, following a highy-publicised controversial ad campaign blasting Prime Minister Rishi Sunak. The plan to cut business rates and energy bills focuses on local firms such as pubs, cafes, restaurants and shops.

Alongside the economic measure to help local businesses, the party has also proposed a revamp of empty units on local high streets and getting rid of late payments for high street firms. In addition to the economic boost for business, the party is attempting to woo voters with a crack down on anti-social behaviour.

Starmer said: “Britain’s businesses already give so much to our economy, and hold a huge amount of potential and promise just waiting to be unlocked.

“But they’re being held back by 13 years of Tory economic failure. The Tories crashed the economy, and business and working people are still paying the price on higher interest rates.

“With our five point plan, Labour will work in partnership with businesses and local communities to get our high streets thriving again. This is just one of the ways we will deliver our mission to secure the highest growth in the G7, so every part of our country can feel better off.”  

Cut to business rates and energy bills

While the average household has dealt with sky-rocketing bills over the past year, businesses have been hit even harder. There are currently no caps on business energy bills, with businesses across the UK being forced to close their doors as a result of eye-watering gas and electricity bills.

Starmer and Reeves will launch a new campaign to cut energy bills for local businesses during their visit to Great Yarmouth. This includes proposing a £700million voucher scheme, funded by Labour's proposed windfall tax on gas firms, for businesses to install energy-saving measures such as double glazing or electric vehicles.

The party has also proposed that business rates will be cut for small businesses. This would be funded through the taxation of online giants such as Amazon by raising the Digital Services Tax.

Labour has said that the proposed cuts could save the average UK pub, cafe or restaurant £2,600. Tina McKenzie, Policy Chair at the Federation of Small Businesses, said: “We’re pleased to see Labour commit to tackle the terrible trio of late payments, sky high energy bills, and the archaic business rates system. This is practical economic policy that would make a difference on the ground.

"Small businesses are essential for good jobs, a thriving competitive economy, and products consumers want at a price they can afford. You cannot have a strong economic policy without a strong small business policy.”

Crackdown on anti-social behaviour

Alongside Labour's plans to cut business rates and energy bills, the party has put a focus on tackling anti-social behaviour, which it says is blighting the British high street and pushing people away from local businesses. Starmer will pledge to post 13,000 more police officers and PCSOs (police community support officers) in local communities, as well as introducing a mandatory requirement for antisocial behaviour officers in every local authority.