Andy Burnham's proposal to overhaul business rates to support small high street firms could cost around £880million annually, a bombshell new analysis has revealed.
The former Greater Manchester Mayor, who could become Prime Minister in just a fortnight, intends to fund support by taxing large warehouses used by online giants, including Amazon.
Mr Burnham opened the door to tax rises during an interview with LBC last week, claiming there is "room for movement on tax" within Labour's 2024 manifesto.
The Makerfield MP is pushing for a 50 per cent increase in the threshold for 100 per cent small business rates relief in England.
Global tax firm Ryan forecasts the policy could exempt 140,000 additional small premises from paying business rates altogether.
Alex Probyn, a practice leader for property tax at Ryan, said: “Supporting small businesses is a great policy objective.
“The concern is how that is funded if things have to be revenue neutral.
“Larger commercial properties are already contributing more through the existing business rates surtax to fund lower liabilities for retail, hospitality and leisure.
“The obvious question is whether they are now going to be asked to contribute even more.”
FOLLOW BELOW FOR LIVE UPDATES THROUGHOUT THE DAY…
Foreign Office staff cull looms as department left leaderless during pivotal period
Sir Olly Robbins delivered his damning evidence to the Foreign Affairs Committee this morning | PARLIAMENT TVThe Foreign, Commonwealth and Development Office (FCDO) is in turmoil after the sacking of Sir Olly Robbins in April over Peter Mandelson’s security vetting, leaving behind a restructuring plan and a proposed 25 to 30 per cent cut in the department’s wage bill.
The job of permanent under-secretary was advertised last month but, for now, the FCDO is leaderless as a staff cull looms with few staffers safe.
Olly Robbins left behind a contentious restructuring programme known as FCDO2030, which proposes slashing the department's wage bill by between 25 and 30 per cent.
In the most severe scenario outlined by Mr Robbins himself, up to 1,885 UK-based employees could find themselves out of work.
A year ago, the department employed 8,152 staff in Britain, but the restructuring will see Westminster-based directorates reduced from 43 to 34, with those working domestically bearing the initial brunt of cuts.
Hannah Keenan, associate director of the Institute for Government, described the proposed reductions as "an incredibly sharp amount of cuts" carrying "all sorts of risks".
Staff describe witnessing colleagues reduced to tears as they face the prospect of reapplying for their own positions, and competing for others' roles too.
"It's like a horrible game of musical chairs," one anonymous FCDO official remarked.
'Mission critical' to hit spending targets, says Defence Secretary from HMS Prince of Wales
Defence Secretary Dan Jarvis has raised concerns over alliance spending targets en route to this week's Nato summit aboard the HMS Prince of Wales.
He said it was "mission critical" to deliver as soon as possible, adding: “Those were the assurances that I was giving to Nato partners when I was in Brussels a couple of weeks ago. That’s what I will be saying to people in Ankara."
Last week, the Treasury confirmed Andy Burnham will have to find £4.7 billion in savings during his first budget to fully fund the Defence Investment Plan, raising the possibility of further cuts to public services.
Mr Jarvis added: "Other government departments aren’t necessarily going to get the money that they want to do everything that they need to do."
Labour Party Chair blasts Nigel Farage as 'pathetically weak' amid George Cottrell controversy
Chairwoman of the Labour Party Anna Turley has urged Nigel Farage to stop “blaming the media” and answer questions about the support from long-term associate George Cottrell.
The Cabinet minister and Redcar MP said: “Reform’s excuses for the scandals engulfing Nigel Farage are getting pathetically weak. His top team must be wondering how many more times they will be wheeled out to defend the indefensible only for the rap sheet against him to grow just hours later.
“This latest revelation appears to pour cold water on Farage’s claims that the gifts and support he received from a convicted criminal were not in support of his political activities.
“Nigel Farage must come out of hiding and level with the public. It’s time he stopped blaming the media and took responsibility for his actions.”
The Sunday Times said Mr Cottrell recruited and paid three staff to work on Mr Farage’s social media before the general election, and has continued to allow him to use a five-storey Georgian property he rented near Buckingham Palace.
Nigel Farage has 'serious questions to answer' says Education minister
Nigel Farage has “serious questions to answer”, a minister has said as the Reform UK leader faces calls for an investigation into financial support given to him by a convicted criminal.
Education minister Olivia Bailey said she was shocked at the Clacton MP’s reaction after he claimed he is the victim of an “establishment hit job”.
She told LBC: “I think he’s got really, really serious questions to answer, and to be honest, I’m really shocked to see the reaction from him, from Robert Jenrick on the telly yesterday, trying to obfuscate, trying to say there’s nothing to see here, trying to accuse the Times of being a Labour-supporting newspaper.
“I did chuckle at that one. I think it’s ridiculous, I think it’s offensive to the British public. I think there are serious questions to answer, and I hope that the Parliamentary Standards Commissioner proceeds with their investigations.”
Education minister urges children to get into school this morning after late nights for England vs Mexico
Education minister Olivia Bailey has said children should be in school this morning despite staying up late for the England vs Mexico match of the World Cup overnight.
Ms Bailey told Sky News: "Well, it's definitely acceptable for them to have stayed up late. Of course, children can stay up and watch it, but get themselves into school this morning.
"Might feel a bit tired, but it's important you're there. And of course, you can celebrate with your mates as well, because what a great game it was."
She added that, as the England team showed resilience, it's important for children to learn resilience by going to school after a poor night's sleep.
"It'd be a great time to enjoy your lunch break in a kickabout with friends to celebrate the result."
Government crackdown on overseas political donors after Nigel Farage's controversial £5m gift
Overseas donors to political parties will have to wait a year after moving back to the UK before being able to give more than £100,000 a year, the Government is to announce today.
These new rules could potentially hit two of Reform UK's biggest donors - cryptocurrency tycoons Christopher Harborne and Ben Delo - who have both announced plans to return to the UK.
A £3m donation from Thailand-based crypto-billionaire Harborne was the largest single donation Nigel Farage's party received between January and March 2026, placing the leader under much public scrutiny.
The Electoral Commission figures also showed that Ben Delo, another cryptocurrency magnate based in Hong Kong, donated £4m to Reform in two £2m lump sums in January and March.
Additionally, only legitimate UK-linked businesses will be able to donate, and these will be assessed against post-tax profits over the previous five years, rather than revenue alone.
Housing Secretary Steve Reed said: "British democracy is not for sale. These tough new rules will shut down dodgy funding, stop foreign money influencing our elections and keep our democracy strong.
"By holding overseas donors to tougher standards and requiring candidates to prove where their funding comes from, we are taking world-leading action to protect the integrity of our elections and tackle the threats we face from abroad."