The UK has a new PM and the small business community is eagerly waiting to see what Andy Burnham’s arrival at Downing Street means for them.
This comes at a tough time for many small business owners.
Figures from the Federation of Small Businesses (FSB) show that just one in six small businesses expect to grow over the next year.
And while one in five saw an increase in takings in Q2 2025, more than half reported a drop in revenues.
As a result, nearly a third of small businesses think they’ll shrink, have to sell up or close completely in the next 12 months.
What difference can the new PM make?
Small business owners cite three big factors as drags on their growth - the UK economy, tax and the cost of employing people.
So the FSB is hoping that Mr Burnham can make meaningful changes, such as helping small businesses with business rates and tackling late payments.
“The new prime minister’s first Budget will be a huge early test of whether he can put small businesses first, drive down costs, and drive up growth, opportunity and jobs,” said Tina McKenzie of the FSB.
“But what is crucial is that this is complemented by every department finally putting growth first and pulling in the same direction.”
Ms McKenzie added that small firms are “the only engine of growth present in each and every postcode” and that the country needs them to be “firing on all cylinders”.
Burnham promises to be ‘pro-business’
While Burnham has criticised the impact of privatisation and promised greater state control of utilities, he has also insisted he will back business.
Speaking last week after being confirmed as the new Labour leader, 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 Greater Manchester.
“We turn places round together and that is the way.”
As the change takes place at the top, there is at least one certainty - small business owners will be paying very close attention to any announcements coming out of Downing Street in the next few days and weeks.
