The UK has entered a new political chapter following Andy Burnham’s appointment as Prime Minister. As with any change of government, many business owners will be asking the same question: what does this mean for my business? While it is still very early days, the appointments to Burnham’s Cabinet offer some clues about the government’s priorities. However, it’s important to separate confirmed policies from media speculation. At this stage, many of the proposals being discussed are just that – rumours and expectations rather than confirmed government policy.
A New Team at the Top
One of the biggest surprises has been the appointment of John Healey as Chancellor of the Exchequer. Previously Defence Secretary and with previous Treasury experience earlier in his career, Healey now faces the challenge of delivering economic growth while maintaining pressure on public finances. His appointment came as a surprise to many political commentators, making him one of the most closely watched figures in the new government.
Alongside him, Jonathan Reynolds returns as Business and Trade Secretary, taking responsibility for one of the most important departments for UK businesses. His brief is expected to focus on supporting growth, investment, exports and improving the relationship between government and business. There are also reports that the Department for Business and Trade will take on additional responsibilities following a restructuring of government departments.
Meanwhile, Dame Angela Eagle has been appointed Environment Secretary. For many businesses this may not appear to be an immediately significant appointment, but environmental policy increasingly affects organisations of every size. Areas such as recycling, waste management, planning, farming, energy efficiency and sustainability are likely to remain high on the agenda. Rural businesses, manufacturers and companies operating commercial premises will be watching developments particularly closely.
The Challenges They Inherit
The new government inherits an economy that has been difficult for many small businesses over recent years.
Many owners have faced:
- Rising National Insurance costs.
- Increased wage bills following National Living Wage rises.
- Higher energy and utility costs.
- Inflation affecting materials and supplies.
- Continuing recruitment difficulties.
- Reduced consumer confidence in some sectors.
For many SMEs, especially independent retailers, hospitality businesses, tradespeople and service providers, margins have become increasingly tight. While many businesses have shown remarkable resilience, there is no doubt that operating costs remain significantly higher than they were just a few years ago.
Business Rates Continue to Dominate Discussion
Perhaps no issue generates more debate among small business owners than business rates.
Although no major reforms have yet been announced, there is widespread speculation that the new Chancellor could look again at the current system as part of wider economic reforms. Various ideas have been discussed by commentators, including:
- Modernising the business rates system.
- Providing greater relief for independent high street businesses.
- Reviewing how online retailers and physical premises are taxed.
- Simplifying the current relief schemes.
At the time of writing, these remain rumours and policy discussions rather than confirmed government plans. Business owners should avoid making decisions based on speculation until official announcements are made.
What Small Businesses Have Been Asking For
Regardless of political views, there are several areas where there is broad agreement across the small business community.
Many business owners would welcome:
- A simpler tax system with fewer unexpected changes.
- Greater certainty to allow long-term planning.
- Reform of business rates.
- Less bureaucracy and paperwork.
- Easier access to finance for growing businesses.
- Better support for apprenticeships and skills.
- Faster planning decisions.
- Improved broadband and digital infrastructure, particularly in rural areas.
- Policies that encourage investment rather than discourage it.
For many entrepreneurs, stability is just as valuable as financial support. Businesses can usually adapt to change—but frequent policy changes make long-term planning much harder.
Growth Will Be the Key Test
Prime Minister Andy Burnham has spoken about economic growth, reindustrialisation, devolving more power to regions and helping households with the cost of living. These wider ambitions will inevitably have an impact on businesses if they translate into increased investment, infrastructure projects and stronger consumer confidence.
However, many businesses will judge the government not by speeches but by practical action.
Questions owners will be asking include:
- Will costs come down?
- Will confidence improve?
- Will regulations become simpler?
- Will investment become easier?
- Will government genuinely listen to SMEs?
Looking Ahead
It is far too early to judge the success of the new government. Cabinet appointments are only the beginning, and businesses will now wait to see the Chancellor’s first economic statement and any future Budget announcements. For now, business owners should keep a close eye on official announcements rather than media speculation. Rumours can often dominate headlines, but policies frequently evolve before becoming law.
Whatever political colours are in Downing Street, one thing remains unchanged: small businesses continue to form the backbone of the UK economy. They create jobs, support local communities, drive innovation and keep our towns and villages thriving.
If the new government can create a more stable, predictable and business-friendly environment—whether through tax reform, business rates changes or reducing unnecessary red tape—it would be welcomed by many business owners who simply want the confidence to invest, employ and grow.
As always, we’ll be keeping a close eye on developments and sharing practical updates as confirmed information becomes available, helping small businesses understand what any changes could mean in the real world rather than simply following the political headlines.
