By Liza Helps, Property Editor, Logistics Matters

THE ANNOUNCEMENT to target warehousing as a source of funding to reduce  business rates for pubs and high street retailers came in an interview on ‘Tonight with Andrew Marr’ on LBC radio yesterday .

The elected Labour MP for Makerfield said:  “I believe there is a case for higher business rates on warehouses and the major developments we see on the outskirts of our cities, so we can cut business rates for pubs – I proposed a 20 per cent cut – and lift some high street businesses out of business rates altogether.”

Burnham has already said that he would reform business rates as a wider packet of pledges that included renewing of high streets, devolution and  the biggest council house building programme since the 1950s which he outlined his first major policy speech on Monday following his election.

Talking to Logistics Matters UKWA CEO Clare Bottle labelled the move as: “Wrong headed, damaging and stupid.”

“The Government has already implemented a special higher multiplier for  business rates targeting warehouses which was very poorly received – this shows what a poor grip of economics he has.”

Bottle pointed out that the vast majority of essential goods including food at some point goes through, or is stored in a warehouse. Putting up business rates will only feed inflation as the costs will be passed onto consumers across the board. A more targeted approach possibly around the reduction in National Insurance for high street retail and hospitality workers might be a better solution.

It should be noted that Burnham once worked on a logistics magazine Tank World the predecessor to Bulk Distributor albeit some 35 years ago as assistant editor.