With Keir Starmer announcing his resignation as Prime Minister, there has been much speculation about what this means for the future of UK politics.
His hotly tipped successor, Andy Burnham, is set to enter 10 Downing Street by Monday the 20th of July if no leadership contest has taken place.
However, amidst the uncertainty, people will find themselves wondering what this leadership change could mean for smaller businesses and the self-employed?
Do we know what Andy Burham plans to do in power?
With only recently becoming an MP, Andy is yet to provide a detailed economic blueprint for the country.
However, he has made certain aims clear in his recent media rounds that will likely change policy for SME’s.
A core aim for Burnham is a move towards a ‘devolved’ Britain, which would mean putting power back into the hands of local authorities and moving decision making away from central Government in London.
How could this benefit SMEs?
If we look at other forms of devolution in the UK, this could mean the introduction of regional growth funds which would help local scale-up and start-up businesses outside of London to access capital.
Another focus is overhauling procurement rules to make public contracts easier to win for local firms, thereby creating a more level playing field.
Burnam draws attention to the need to rejuvenate high streets, which could involve cutting business rates of independent companies and instead taxing larger e-commerce hubs on the outskirts of cities.
Devolution may also give Andy Burnham and his cabinet the ability to invest more per capita on services and infrastructure, to bring balance to the current skew towards London. This would inevitably support the operations of many SMEs.
Are there reasons to be cautious?
In any case, political uncertainty is expensive for businesses, but this is especially true for small operations with much tighter margins.
The lack of a clear plan from Andy Burnham leaves businesses guessing and feeling unprepared for change.
From what we do know, there may be some potential drawbacks for SMEs if these plans do go ahead.
While Burnham has expressed sympathy for the National Insurance strain on businesses, he has not pledged any impactful changes yet.
For e-commerce companies that rely on large fulfilment hubs, the rise in taxes may be passed down onto smaller brands which would feel the squeeze.
Also, limiting Government contracts to British suppliers could reduce competition in supply chains and potentially increase costs for smaller contractors.
How should I prepare?
Everything remains up in the air and pure speculation until the new Prime Minister takes to office, outlines their plan and announces who will sit in their cabinet.
This can be stressful for smaller companies caught in this limbo, not knowing how they might be impacted or if they are unprepared.
We understand your position and will be closely following the situation as it unfolds to ensure your business can manage any changes introduced by the new Government, once it in power.
If you want to speak to a member of the team for more details about our support and services, please get in touch.