Does a new prime minister mean a new chapter for SMEs?

As the seventh prime minister in a decade steps through the front door of Number 10, Britain’s small and medium-sized enterprises (SMEs) are quite reasonably asking themselves the question: “Will this be the prime minister who finally gets us?”

According to the Office for National Statistics, SMEs account for 99.9% of all private sector businesses in the United Kingdom.

Andy Burnham, taking office as prime minister, is expected to be a new broom and has the opportunity to make a real difference in the business landscape. For years, SMEs have endured a mix of high borrowing costs, persistent inflation, supply chain friction and domestic growth figures a few tenths of a percentage point on either side of zero.

What do governments not understand? Our small businesses are the engine of the UK economy, accounting for over 99% of all private sector businesses and driving millions of jobs. We want to grow. We are the only way the economy can grow. The question is: will our latest prime minister buck the trend and give us what we need?

As a founder who works daily alongside business owners navigating capital and growth strategies, I see both clear opportunities and real policy risks in the months ahead. Here is what I think you need to watch for.

The procurement opportunity

One of the most encouraging shifts for UK SMEs is the growing momentum around reforming government procurement. Historically, valuable public sector contracts, worth tens of billions of pounds annually, have been locked behind bureaucratic walls. This has frozen out SMEs in favour of multinational conglomerates with vast compliance departments.

Recent policy moves to break down these barriers recognise that SMEs have the advantage of bringing speed, innovation and local economic multiplier effects that larger prime contractors simply cannot match. Public infrastructure and defence supply chains are becoming more accessible to smaller, agile firms. The UK’s commitment to expanding SME access to public sector contracts presents a huge opening for smaller firms. The government has recognised that SMEs bring a lot to the table, from specialised tech providers and advanced engineering workshops to regional logistics and catering firms; the case for local supply chain integration is stronger than ever.

If the incoming administration doubles down on simplifying tender processes and enforces strict SME spend targets across Whitehall, it could unlock a direct pipeline of predictable, high-value revenue for growing businesses.

Will Burnham unleash the northern powerhouse?

Andy Burnham’s journey to Downing Street has been very different from the traditional Westminster pathway. Having spent nearly a decade as mayor of Greater Manchester, he brings a reputation for regional economic development, public transport reform and regional devolution.

For SMEs, this regional perspective carries the opportunity of rebalancing the opportunities available to SMEs. Burnham’s instinct to govern beyond the London bubble means there will be a renewed push for regional transport connectivity, industrial clusters and devolved business support grants that will focus on precisely the northern commercial ecosystems that have historically felt overlooked.

Devolution will also mean that local leaders can tailor business support, skills training and green transition incentives directly to local industrial needs rather than relying on a one-size-fits-all strategy from London.

The way ahead is not without problems, however. Burnham inherits an economy with tight public finances, leaving little room for sweeping tax cuts or massive state subsidies. Government revenue may need to be raised through targeted taxation or employer contributions, which is the last thing that SMEs need right now.

Burnham must also be careful that a heavy policy focus on northern industrial hubs is not perceived as being at the expense of SMEs operating in the Midlands, South East or international trade corridors. National economic health requires all regions to fire on all cylinders. Whether we will see the northern powerhouse “unleashed” or not in the coming months depends upon Burnham maintaining his momentum and nerve in the face of a potentially hostile reaction from the forces that want to keep the Westminster bubble firmly intact.

What your business can do right now

SMEs should begin by reviewing their eligibility for upcoming public sector tenders and engaging with local enterprise partnerships to understand new procurement guidelines. Strengthening cash flow resilience through diversified financing options and building relationships with regional development agencies will also position firms to benefit from any forthcoming support measures. By staying proactive, businesses can turn political uncertainty into a catalyst for growth.

The post Does a new prime minister mean a new chapter for SMEs? appeared first on Elite Business Magazine.