The New Prime Minister's "New Offer" to Business: What Founders Should Know
Andy Burnham became Prime Minister on 20 July 2026 and on 24 July set out a "new offer" to business groups: lower costs, business rates reform, faster decisions and procurement that backs British firms.
By Entrepreneur Group · Published · Updated
Andy Burnham took office as Prime Minister on 20 July 2026, after Sir Keir Starmer stepped down and Burnham was elected Labour leader on 16 July. On 24 July he held his first calls with business groups and set out what Downing Street called a "new offer": lower costs, business rates reform, faster government decisions and public procurement that backs British businesses by default.
For founders, the announcement is a statement of direction rather than a list of new rules. Most of the detail is due at the Autumn Budget on 28 October 2026.
Who was on the calls
The Downing Street summary names the organisations that took part. They include the CBI, the British Chambers of Commerce, the Federation of Small Businesses, Make UK, Small Business Britain, the Startup Coalition, Enterprise Nation, Family Business UK, the Institute of Directors, the ScaleUp Institute, Social Enterprise UK and Co-operatives UK, alongside Citizens Advice and the TUC.
The same week, a new Department for Business, Innovation, Science and Trade was created, combining business, science and trade policy in one department.
What the "new offer" says
The government's list of commitments to business is:
- Stable, long-term foundations so businesses can plan and invest.
- Faster decisions from government and a stronger business voice in policy.
- Lower costs, including reform of business rates. A 20% rates cut for pubs, clubs and music venues from April 2027 was announced the day before.
- More decisions taken locally through devolution.
- Fewer barriers to doing business and hiring.
- Workers' rights reforms developed with businesses, unions and workers.
- Public procurement used to back British businesses by default, supporting jobs, apprenticeships, innovation and skills.
- Continued trade work. The government noted that the Economic Prosperity Deal with the US, with zero tariffs on whisky and medical technology, remains in place despite new US global tariffs announced that day.
In return, the government asks businesses to help deliver growth across the country, look after employees and communities, invest in people and work with government on youth unemployment and skills shortages. In the published statement the Prime Minister said: "We'll bring down costs, reform business rates and use the power of government to back British business."
What it means for startups and small firms
This section is editorial guidance.
The most concrete items for smaller businesses are business rates and procurement. If you sell to the public sector, a "British by default" approach could matter, but no procurement rules had changed at the time of the announcement, so treat it as a signal and watch for guidance before changing how you bid.
The youth employment theme is also worth noting. Simply Business reports that the Prime Minister wants employers to help restore the "first rung on the ladder" for young people. If you hire apprentices or graduates, keep an eye out for new incentives, but do not plan around support that has not been announced.
Finally, hold off on decisions that depend on tax changes until the Budget. Simply Business notes the government has indicated it does not plan to raise the main rates of income tax, VAT or National Insurance, but nothing is confirmed until the Chancellor's statement.
Frequently asked questions
When did Andy Burnham become Prime Minister?
Andy Burnham took office as Prime Minister on 20 July 2026, after being elected Leader of the Labour Party on 16 July 2026.
What is the government's "new offer" to business?
It is a set of commitments announced on 24 July 2026: stable long-term policy, faster decisions, lower costs including business rates reform, fewer barriers to hiring, and public procurement that backs British businesses by default.
Which business groups did the Prime Minister speak to?
His first calls included the CBI, British Chambers of Commerce, Federation of Small Businesses, Make UK, Small Business Britain, the Startup Coalition, Enterprise Nation, the Institute of Directors and the ScaleUp Institute, among others.
Sources
- GOV.UK: PM puts new offer on the table to businesses in first talks with industry groups (24 July 2026) (reviewed 27 October 2026)
- Open Access Government: Andy Burnham officially becomes Prime Minister (20 July 2026) (reviewed 27 October 2026)
- Simply Business: What could Andy Burnham mean for small businesses? (reviewed 27 October 2026)