What could Andy Burnham mean for small businesses?

The latest updates

Andy Burnham was appointed UK prime minister on 20 July 2026
early priorities include devolution, regional investment, and an “Innovation Nation” agenda
he’s pledged business rates reform and a review of thresholds for small firms
details of costs and how policies will be funded haven’t been released

Andy Burnham is now prime minister, after formally being invited to form a government by King Charles on 20 July. For small businesses, he’s indicated that he’ll focus on devolution, business rates reforms, and local investment funds.

Burnham has also made clear that one of his first priorities will be tackling the cost of living and the country’s social care crisis. He wants this moment to be a “circuit breaker” for Britain, with a new economic and political model.

But what will Andy Burnham mean for small businesses and the self-employed? We cover the latest updates and upcoming milestones to watch out for.

‘A pro-business leader’

Burnham emphasised his support for businesses in his first Downing Street address after becoming prime minister. He said: “Make no mistake, everybody. I will be a pro-business leader of the Labour party as I was a pro-business mayor of Manchester.”

He spoke of regional growth and high street survival, including devolved power to improve high streets, business rates reforms, and improved access to public sector contracts for small businesses.

Burnham also revealed plans for an education system that values technical qualifications and apprenticeships – as well as academic degrees, making sure the next generation is ready for the workplace.

How do small businesses feel about a new prime minister?

Before Burnham was officially in office, Simply Business asked readers if they thought a new prime minister would be good for small businesses. The snap poll of 232 respondents revealed that 49% said “no”, whereas 29% said “too early to say” and 13% said yes”.

This quick‑turn poll reflects our audience’s views at publication (29 June-17 July). It’s indicative rather than nationally representative.

What could change for small businesses under Burnham?

Burnham has signaled what he wants to focus on first but details of how his ideas will be funded have yet to be finalised.

These are key areas you need to pay attention to as a small business owner, based on analysis of Burnham’s recent speeches and byelection pledges:

1. Regional investment and devolution

Burnham is a vocal champion of devolution – pushing power and money away from Westminster and towards local areas. He’s talked about ‘Manchesterism’ and wanting to rebalance power away from the London centre.

For small business owners outside London, this could mean more accessible local funding, better transport infrastructure, and stronger regional support networks.

2. Business rates review

While not specifically mentioned in his speech, Burnham has previously spoken of business rates reform when campaigning for re-election as an MP in Mackerfield.

One of his byelection pledges included cutting business rates by 20% for pubs, clubs, and music venues next year – this is a more generous cut than the Treasury’s existing plan of 15%.

Burnham has also said he’d consider cutting employers’ National Insurance and lowering the threshold for paying business rates for small, independent hospitality, leisure, and retail businesses.

3. “Good Growth Funds”

Burnham wants the government to help all regions establish “Good Growth Funds” (modeled after Greater Manchester) to consolidate public and private investment locally, making funding more accessible for local start-ups and scale-ups.

4. Innovation and industry

We could see more support for start-ups and creatives. Burnham specifically said he wants to back “scientists, technologists, entrepreneurs, and creatives” and turn the UK into an “Innovation Nation.”

Key dates and what to track next

Andy Burnham was appointed the new British prime minister on 20 July 2026. This means he’ll no longer be Mayor of Greater Manchester, and there’s a by-election to find his replacement on 30 July.

The next milestones are cabinet appointments, the first statements on how he’ll tackle the cost of living crisis, and a 10-year plan and Budget later this year.

Keir Starmer formally resigned at Buckingham Palace on 20 July.

Why this moment matters for small business owners

Political transitions create uncertainty – and uncertainty is expensive for small businesses. Tax policy, business rates, employment law, and VAT thresholds can all shift with a change in leadership.

Sign up to our newsletter to keep up to date on changing policies and how this could affect your small business. It’s also a good idea to review your financial plans and discuss with a professional if any policy changes could impact how you run your business.