Andy Burnham’s first speech as Prime Minister has placed regional growth, the re-industrialisation of Britain and tackling youth unemployment at the centre of his government’s agenda, with a commitment to spread economic opportunity “to every postcode in the land”.
The new Prime Minister’s focus on empowering communities beyond London has drawn a mixed but broadly optimistic response from business leaders, who have called for action to support small businesses, reduce barriers to growth and create greater certainty for entrepreneurs.
Kevin Fitzgerald, UK Managing Director at employment platform Employment Hero, said Burnham’s “Manchesterism” approach could provide a positive framework for regional growth, but warned that businesses need a simpler environment in which to hire and expand.
“As Andy Burnham steps into the role of Prime Minister, there has already been much said for what his Manchesterism brand of politics might mean for businesses and workers across the UK. The argument that economic growth lies in cities and communities across the UK, and not just in the capital, is a good one. Our data shows employment growth in the North is outpacing even that of London, but employers are being hit harder by rising employment costs and complexity, which has more of an impact on regional businesses and therefore has a knock-on effect on wages. So, if the vision for Manchesterism is growth driven by the regions, then we must look at national policies which make hiring and growth complex for SMEs. Increasing businesses’ ability to be ambitious and make hiring decisions will ultimately support SMEs up and down the country to drive employment growth within their communities.”
The Federation of Small Businesses (FSB) said the new Prime Minister has a “golden opportunity” to reset the relationship between government and smaller firms, with a focus on reducing costs and supporting local economies.
Tina McKenzie, Policy Chair of the Federation of Small Businesses (FSB), said:
“We extend a warm welcome to Andy Burnham as he takes on the most important role in public life. This is a golden opportunity to restart the Parliament, go for growth, and get it right on supporting small businesses.
“The new Prime Minister has set out a positive, pro-small business stall in recent weeks, and we are optimistic that he can galvanise the new government to make these plans a reality. That will mean reworking the mistakes on business rates made by the last government, by increasing Small Business Rate Relief, acting on costs after the sledgehammer of National Insurance rises, and scrapping pointless paperwork that holds business back.
“Where the last government did get things unquestionably right – such as the new late payment laws currently going through the Lords – we need the new Prime Minister to stand firm behind small firms.
“This must include taking novel steps to drive change through the system, including opening up procurement and making sure that decisions that impact local communities are made locally.
“For the Prime Minister to get growth in every postcode, he needs to back the UK’s 5.7 million small businesses which are at the heart of local economies and communities right across the country.”
Small business finance providers also called for immediate action to create the conditions for firms to invest and grow.
Sami Kade, Banking Product Director at Starling Bank, said:
“Small businesses are fighting for survival. To truly unlock jobs and growth, the new Prime Minister must back reform: lift the VAT threshold to £100,000, mandate a 30-day maximum invoice payment term, and urgently review small business rate relief. It’s time to give businesses an environment in which they can succeed.”
Julie Fisher, UK CEO of Simply Business, said the government’s early priorities would be closely watched by millions of small business owners, who are looking for reassurance and practical support.
“As Andy Burnham prepares to take the reins as Prime Minister, the UK’s 5.64 million small business owners will be watching closely for a signal of what his premiership means for them. And he has the opportunity to supercharge our economy by prioritising the needs of SMEs from day one.
“When we spoke to our small business customers earlier this year, a quarter were not confident they would still be trading in 18 months’ time as they signalled five key areas of support for the government to consider. These possible measures included reducing Corporation Tax (27%), increasing the VAT registration threshold (24%) and National Insurance employer threshold (20%), reducing interest rates (20%) and maintaining (or increasing) business rates relief (19%).
“Collectively contributing £2.8 trillion in turnover each year, small businesses are the beating heart of our economy. Burnham’s commitment to raising the small business rates relief threshold, combined with a broader focus on regional investment and “Good Growth Funds”, would all be steps in the right direction. SMEs have consistently demonstrated their potential to fuel growth when they are empowered to do so, and relieving cost pressures will ensure they are given the breathing room to focus on what they do best.
“The appointment of a new Chancellor will be one of the clearest early signals of intent for small business owners. Whoever takes on the role at Number 11 will inherit a golden opportunity to reset the relationship between government and SMEs. We’d encourage them to use their first weeks in post to engage directly with the small business community.”
“As the new government establishes its priorities, we urge them to provide SMEs with the conditions they need to thrive – we know that they will be watching carefully, searching for reassurance that their voices are being heard.”
The technology sector has also urged caution as the new government considers its approach to regulation, particularly around artificial intelligence.
Frank Böhmer, CEO of Ninox, warned that while stronger protections are needed, regulation must not come at the expense of innovation.
“Andy Burnham has talked about taking a tougher line on Big Tech, but AI is probably going to be the issue that defines tech policy over the next few years and there’s a real risk we end up over-regulating the industry.
“You only have to look at Europe’s AI Act to see how over-regulation can add significant complexity for businesses, where it has also raised genuine concerns about stifling innovation and falling behind regions like the US and Asia.
“There absolutely needs to be protection around privacy, security and the use of personal data. But the UK also needs to create the conditions for innovation to thrive and give businesses the confidence to invest, experiment and build while keeping regulation focused on the tangible risks rather than throwing up barriers that just slow everything down.
“AI is likely to be one of the biggest drivers of growth over the next few years and getting that balance right could end up being one of the defining challenges of Burnham’s time as PM.”
Meanwhile, accountancy leaders have called for greater certainty around government policy to help businesses plan for investment and expansion.
Vipul Sheth, Managing Director at Advancetrack, said:
“The new Prime Minister has inherited an incredibly difficult set of economic choices, but top of his in-tray should be this: giving businesses the certainty they need to plan for the future. Entrepreneurs make investment decisions over years, not months, and constant speculation over tax policy risks holding back that ambition.
“If the Government wants to unlock growth, it should focus on creating the conditions for businesses to expand, recruit and innovate. That means avoiding measures that discourage entrepreneurship and instead backing the firms that drive jobs, productivity and economic growth.
“I’d like to see a clear commitment to supporting the UK’s entrepreneurial economy, whether that’s protecting Business Asset Disposal Relief, encouraging investment in skills and technology, or creating a stable environment for firms to scale. Our latest Accounting Talent Index found that 73% of firms still expect to grow over the next 12 months, despite the challenges they’re facing. The ambition is clearly there – Government policy should be helping to unlock it.
“Accountants have a unique view of what’s happening across the economy because they work alongside businesses of every size. The message we’re hearing is remarkably consistent: firms want to invest, hire and grow, but they need a policy environment that gives them the confidence to do so.”