Andy Burnham became Prime Minister on 20 July 2026, taking over from Keir Starmer partway through this Parliament.
He has moved quickly since arriving in Downing Street, with new policies announced at a pace that has been described as a policy blitz.
Much of the detail is still to come, with a full Autumn Budget pencilled in for 28 October.
However, enough has already been signalled to give business owners a sense of the direction of travel.
Cost of living comes first
Burnham has made cost of living support his early priority, describing his approach as being a cost of living Government.
The first major move was to remove VAT from domestic electricity bills from 1 October, cutting the current five per cent rate to zero. The change is expected to save the average household around £45 a year.
This is a household measure rather than a business one, but it matters to owners of small and family businesses too, many of whom will feel the benefit personally even if it does not change their business energy costs directly.
Business rates relief, but mainly south of the border
Burnham has confirmed a 20 per cent cut in business rates for pubs, social clubs and live music venues in England from April 2027, on top of the 15 per cent relief already in place for 2026/27.
The Government says this could save a typical pub around £1,100 in 2027/28, funded partly by reviewing reliefs currently available to businesses judged not to contribute positively to local communities.
There has also been talk of raising the threshold at which smaller independent hospitality, leisure and retail businesses start paying business rates at all.
It is worth remembering that business rates in Scotland are set by the Scottish Government rather than Westminster, so these specific measures do not apply north of the border.
However, they do give a sense of where UK-wide policy thinking is heading and any additional funding that flows to the Scottish Budget as a result could still influence future decisions on rates relief here.
Employer National Insurance under review
The rise in employer National Insurance contributions introduced in the previous Government's October 2024 Budget has been widely blamed for weaker hiring, particularly among younger and entry level workers.
Burnham has publicly described the increase as the wrong decision and said he wants to listen more closely to small business concerns.
No change has been confirmed yet and any reversal would need to be funded from somewhere else.
A Commons committee has also called for employees under 25 to be exempted from employer National Insurance altogether, though this remains a recommendation rather than Government policy.
Employers with younger workforces, in particular, should watch this space closely.
Wealth and property taxes are the ones to watch
Burnham has long argued that the UK taxes work too heavily and assets too lightly.
He has spoken about a possible land value tax, has not ruled out raising corporation tax and has committed to keeping the Government's existing fiscal rules, meaning day to day spending must be met by revenue by 2029/30.
That combination points towards further tax rises being more likely than not, with capital gains tax, inheritance tax and other property-related taxes among those most frequently mentioned.
None of this is confirmed and the Government has been careful to say that any significant announcements will wait for the Budget and come with a full forecast from the Office for Budget Responsibility.
Business owners and investors should treat the current speculation as exactly that, rather than reacting to headlines.
More devolution, but mostly for English mayors
Burnham has committed to giving English mayors a share of income tax receipts for the first time, with a greater share of business rates to follow from spring 2027.
The stated aim is to let local leaders invest in transport, housing and skills without relying on grants from Westminster.
This is a significant shift in how public money is raised and spent in England, though it does not extend to Scotland, where tax powers already sit with the Scottish Government and Parliament.
Even so, it reflects a wider mood in Westminster around fiscal devolution that may eventually feed into conversations about further devolved powers here.
Employment expectations may go further
Burnham built his reputation in Greater Manchester partly around the voluntary Good Employment Charter, which encourages employers to focus on staff wellbeing, secure contracts and fair pay.
Commentators expect some of that thinking to shape how the Employment Rights Act 2025 is implemented and built upon, potentially going further than the current legislation in areas such as a right to switch off outside of working hours.
What this means for planning ahead
Very little of this is settled policy at this stage and much of it depends on what is confirmed at the autumn Budget. A few practical points are worth keeping in mind in the meantime:
- Treat speculation on Capital Gains Tax, Inheritance Tax and property taxes as just that until the Budget confirms otherwise but factor the possibility of change into any planning decisions with long lead times.
- Keep an eye on employer National Insurance, particularly if you employ a lot of younger staff, since this is one of the more likely areas for change.
- If you operate in hospitality or run a pub, club or music venue, the business rates changes are England only for now, though Scottish equivalents may follow depending on Barnett formula.
- Expect employment obligations to keep expanding rather than easing and build a small buffer into workforce planning for further compliance requirements.
- Avoid making major financial decisions purely on the basis of media speculation.
The next few months should bring much greater clarity, particularly once the Autumn Budget is delivered.
In the meantime, if you would like to talk through how any of these developments might affect your business, please speak to our team.
