A new chapter for Labour, but SMEs must be at the centre of the conversation

As Andy Burnham is confirmed as Leader of the Labour Party and the next Prime Minister, much of the immediate attention will focus on what his leadership means for Westminster. Ed Rimmer, CEO of independent SME lender, Time Finance,  shares his thoughts on what this change means for SMEs.

As Andy Burnham was officially announced as the incoming Prime Minister, he spoke about giving hope back to communities. If that ambition is to become reality, SMEs must be central to the conversation. They account for an overwhelming majority of the business community, employ millions of people and drive growth in every town, city and region. They create opportunities, support local economies and give communities confidence in their future. Giving hope to Britain therefore starts with giving businesses the confidence to invest, recruit and grow.

What should business owners be looking out for?

Burnham’s first few months in office will be watched closely by the SME community. One of the policy areas likely on the table will be business rates reform. Burnham has previously backed measures including a 20% reduction in business rates for pubs and proposals that could remove many smaller high street businesses from paying business rates altogether.

If delivered, these changes could provide relief for independent retailers, hospitality businesses and other SMEs facing continued cost pressures, freeing up cash that could instead be invested in staff, equipment and expansion.

Alongside this, Burnham has indicated he intends to maintain the fiscal discipline established under Labour’s 2024 manifesto and Rachel Reeves’ fiscal rules. For businesses, that continuity should help provide confidence that economic stability remains a priority. 

There is also the prospect of a Cabinet reshuffle, possibly including a new Chancellor. For SMEs, any potential changes need to deliver consistency in the areas that affect them most – investment, lending, taxation and business confidence.

Policy matters, but so does access to finance

Regardless of who is in Number 10 or Number 11, one issue remains constant; growing businesses need access to funding. Political transitions often mean businesses delay investment decisions while they wait for clarity. But business opportunities don’t pause for politics. Whether investing in new equipment, hiring staff or managing seasonal cashflow, SMEs need confidence they can access the finance they need to keep moving forward. 

As an SME finance provider, we see every day that Britain’s smaller businesses are ambitious, resilient and ready to grow. What they need is a policy environment that supports that ambition rather than further uncertainty.

Giving hope means backing Britain’s entrepreneurs

Andy Burnham has spoken about restoring hope to communities across the country. But hope is built through thriving local economies, successful independent businesses and entrepreneurs who feel confident enough to invest in their future.

As the incoming Prime Minister begins to set out its priorities, the message from the SME community should be clear; policies that improve business confidence, reform outdated systems and maintain access to finance will do more than support individual businesses. They will help deliver the economic renewal that communities across the UK need and deserve.