It’s official: Keir Starmer has resigned as prime minister and leader of the Labour Party. He will continue until a new leader has been chosen, but what plans do the potential candidates have for small businesses? Let’s explore.
Andy Burnham
Overwhelmingly the favourite to win, Andy Burnham was keen to announce his leadership bid soon after Starmer’s resignation speech.
Business rates
In his by-election campaign, Burnham pledged a cut of 20% business rates cut for pubs and music venues. This would be paid by higher taxes on out-of-town warehouses and online retailers including Amazon. He also wants to raise the threshold that business rates are paid at so that many small businesses are exempt from paying at all.
Employer National Insurance
Burnham wants to reconsider the increase to employer national insurance contributions announced in Reeves’ 2024 Autumn Budget. According to the BBC, he believes it was the wrong decision but wouldn’t necessarily overturn it.
Education and work
He’s said that he wants to secure more work placements for 16-18-year-olds along with guarantees of apprenticeships.
We will include more candidates and pledges as news emerges.
What do small businesses want?
With so many prime ministers in the past decade, planning for the future becomes more difficult for entrepreneurs.
Simon Pratt, chief operating officer at Portman Finance Group, said:
“What business are really crying out for now is some certainty. For SMEs in particular, confidence is such a huge part of growth. If business owners are constantly trying to second guess the direction of travel coming out of Westminster, planning properly for the future, making the right investment decisions and accessing the right type of finance becomes much harder.
“Across the market, we’re already seeing more firms come under pressure. Projects are being delayed, invoices are taking longer to be paid, and in some cases, businesses are seeing traditional lenders reduce their overdrafts.”
“Ultimately, certainty is what gives businesses the confidence to invest, expand and borrow. Firms need to know that if they commit to a growth plan today, the wider political or economic landscape isn’t suddenly going to undermine those decisions tomorrow.”
Eva Barboni, executive director of Enterprise Britain, said:
“The message we hear consistently from entrepreneurs, business leaders, and investors is that they want a government whose ambition for the country matches their own.
“They also want to see a clear economic plan that acknowledges the critical role our fastest-growing companies play in driving economic growth, creating jobs, and advancing shared prosperity.
“As Labour selects its next leader, it is crucial that they prioritise accelerating the reforms needed to help British businesses start, scale, and succeed here in the UK.
“This should not be treated as an ideological issue. We need a broad consensus that to deliver shared prosperity for the country, we need to create an environment in which companies can grow.”
Read more
Pubs to get 15% discount on business rates – Pubs and music venues will have a 15 per cent discount on their business rates from April 2026, followed by a two-year real-terms freeze
