Story perspectives

Labour Pushes Mayor for 2% Levy, 37% Rate Cut

7/15/2026

Summary

Story summary

The Real Rates Reform Alliance, led by Ros Morgan, proposed a 2 % online levy and a 37 % cut to physical rates.
The poll found 47 % of firms saw higher rates since April 2026, 55 % said rates cost a major or moderate share, and firms responded by raising prices (31 %), delaying investment (19 %) or cutting staff (17 %).
Labour’s manifesto pledged rate reform, urging Mayor Andy Burnham to adopt the plan.

History

Historical Context

The 1992 Local Government Finance Act, championed by Prime Minister John Major, overhauled UK business rates by replacing outdated domestic levies system. The Department for Communities and Local Government’s 1993 revaluation lifted average rates by 15 % across England, costing firms £2 billion annually in total. Today, Ros Morgan’s Real Rates Reform Alliance proposes a 2 % online levy and 37 % cut, mirroring 1992’s simplification drive championed by Labour’s Andy Burnham. If adopted, the levy could curb the 47 % of firms reporting higher rates since April 2026, stabilizing prices and preserving employment.

1 of 2

Story summary

The Real Rates Reform Alliance, led by Ros Morgan, proposed a 2 % online levy and a 37 % cut to physical rates.
The poll found 47 % of firms saw higher rates since April 2026, 55 % said rates cost a major or moderate share, and firms responded by raising prices (31 %), delaying investment (19 %) or cutting staff (17 %).
Labour’s manifesto pledged rate reform, urging Mayor Andy Burnham to adopt the plan.

1 / 2