Andy Burnham has pledged to cut business rates for pubs and music venues by 20 per cent if he replaces Keir Starmer as prime minister.The Greater Manchester mayor - who is intent on challenging Sir Keir for the Labour leadership if he returns to Westminster - lashed out at the Government for having 'got it wrong' on small businesses.He condemned ministers for having 'undervalued' the contribution of high streets and family-owned firms to local communities and the economy.Making an announcement on business rates as part of his campaign to become Labour MP for Makerfield at this month's by-election, Mr Burnham said he wanted to give small firms a 'chance to thrive'.As well as cutting business rates for pubs and music venues by 20 per cent, Mr Burnham is also vowing to abolish business rates altogether for cafés, shops and hairdressers if he becomes PM.To fund his plans, Mr Burnham said he would raise taxes on online tech giants and their warehouses in Britain, while also tackling tax evasion that is harming high streets.The rates cut for pubs, which would begin in 2027-28, is estimated to cost around £100million, while abolishing rates for cafes, shops and hairdressers could cost a further £250million.The move is a direct challenge to Sir Keir and Chancellor Rachel Reeves' handling of the economy since they entered Downing Street at the 2024 general election. Andy Burnham, pictured visiting the Holts Arms in Orrell, has pledged to cut business rates for pubs and music venues by 20 per cent if he replaces Keir Starmer as prime minister Mr Burnham made an announcement on business rates as part of his campaign to become Labour MP for Makerfield at this month's by-electionThe Government is currently undertaking a revaluation of business rates which, coupled with a removal of Covid-era relief, is expected to result in higher levies for restaurants, cafes, shops and other small businesses.Pubs and music venues were given a carve-out to help them with costs in January, with a 15 per cent rates relief package, following public outcry.But Mr Burnham has pledged to go further and cut rates by 20 per cent for pubs, as well as increasing the threshold at which other small businesses would need to pay business rates, effectively abolishing the tax for the smallest concerns.The Greater Manchester mayor said: 'Our high streets matter to me because they matter to the people who live here.'I want to make sure that these family-owned businesses, as the heart and soul of this country, are protected and given the chance to thrive.'I am willing to be honest about where we have fallen short – and say that my party has got this wrong in Government.'They have undervalued the contribution these businesses make to our livelihoods and our communities.'He added: 'Reconnecting Labour to working-class Britain means backing our high streets and reconnecting with our local family-run businesses.'I want to build a future where businesses in Makerfield can grow in confidence knowing we are on their side.'That starts with giving them a fairer tax system and standing up for the people who run them.'Allen Simpson, chief executive of industry group UKHospitality, said: 'It's right to recognise that high street hospitality businesses are the heart and soul of Britain and, crucially, that the system is broken and in need of reform.'The challenges facing local businesses are universal and affect all types of venue, from pubs and restaurants to cafés and hotels.'An effective high street strategy needs to deliver a hospitality-wide solution to deliver for all businesses, high streets, towns, cities and communities.'To reverse the trend of closures and lost jobs into openings and new jobs, that strategy needs to include a plan for delivering lower business rates and a 10 per cent rate of VAT for hospitality.'We continue to have discussions with government about business rates bills for the next two years of this current cycle and continue to have positive conversations with all major parties about business rates across England, Scotland and Wales.'Emma McClarkin, CEO of the British Beer and Pub Association, said: 'While the current relief in business rates for pubs is welcome, pubs continue to pay a disproportionately higher rate which grinds down their ability to keep the doors open. 'A further 20 per cent would be a real boost for the local, and raising the threshold so many smaller pubs get taken out of paying rates would make a real difference to high streets and livelihoods.'We know how much people value the pub, and we want to work with all parties on long term reform so our pubs stay open, young people stay in jobs, and the local remains at the heart of the community.'