What Andy Burnham becoming PM might mean for your Business

It is almost certain that Andy Burnham is about to walk into Number 10, with 349 of the party's MPs having now nominated him to replace Sir Keir Starmer. If you run a business, you probably want to know what that means for you. Here's what we're keeping an eye on at Toast, and what you should do next, as yet another new Prime minister embarks on a new era.

First, what's actually changed?

Burnham is set to replace Keir Starmer after a Labour leadership handover, not a general election. This means that there is no fresh manifesto, simply a new leader of the same governing party, with his own priorities layered on top of commitments that already exist. The issue he faces is that his party have fallen under immense scrutiny from the public, and lost a huge amount of seats in recent council elections. Burnham will now look to turn the tide.

To put a long story short, His main campaign is something he calls "Manchesterism"  which focuses on pushing money and decision-making out of Westminster and into the regions, with the aim of "good growth in every postcode." What this will look like in practise remains to be seen.

The one that matters most if you'll ever sell: Capital Gains Tax

If there's a single area worth your attention, it's this one.

Capital Gains Tax is the tax you pay on the profit when you sell an asset (including when you sell your business) The main higher rate went from 20% to 24% in late 2024. Business Asset Disposal Relief, the thing that lets you pay a reduced rate on the sale of your company, has been rising in stages: it was 10%, it's 14% for the current tax year, and it's set to hit 18% from April 2026.

Now here's the part that should get your attention. The advisers closest to Burnham's team have drawn up plans for a bigger CGT overhaul, one that would push the rate higher for people selling larger assets. Nothing's confirmed yet. But two things point the same way: the April rise is already locked in, and the people around the incoming PM are actively looking at raising CGT further.

Here's what that means in real money. Say you're a company director selling your shares for a £500,000 gain, and it all qualifies for Business Asset Disposal Relief. At today's 14% rate, that's a £70,000 tax bill. At the standard 24% rate without the relief, the same gain costs you £120,000. That's a £50,000 swing on one decision, with the relief itself is getting less generous every year it's left untouched.

If selling your business is anywhere on your horizon, even five years out, the timing of that decision now carries real weight. This is exactly the conversation your accountant should be starting with you, not one you should be piecing together from the news.

If you employ people, watch the labour rules

Burnham built his reputation within Labour partly on being pro-worker, and some of the specific measures he's backed over the years point at your payroll.

He's talked about extending the higher minimum wage to under-25s, and he's supported banning zero-hours contracts. Neither is law, but if your business runs on younger staff or flexible shift work (think hospitality, retail, anything seasonal) these are the changes that would hit your cost base directly.

This doesn't mean you should panic, but you should know your numbers well enough that you could model the impact in an afternoon if one of these becomes real. What does a wage floor change do to your margin? How many of your contracts would need restructuring? If you can't answer that quickly, that's something to address, regardless of what any government does.

The regional angle is the wildcard

The heart of Burnham's agenda is devolution, handing regions more power over tax, borrowing and services like energy and transport. For most of his time in politics that meant Greater Manchester. The question now is how much of it goes to the other hubs around the country.

For a business in Derry or anywhere in Northern Ireland, this is genuinely hard to call. More regional economic power could mean local investment, infrastructure and growth funding closer to home. It's the part of the picture with the most upside and the least detail, which means it's the part to watch rather than plan around just yet.

So what should you actually do?

None of this is set in stone, and any guru telling you otherwise is guessing. But "wait and see" isn't a plan either. Here's where we'd focus.

Find out what your exit position is now, even if you're years away from one. If your business has any sale value, understand what selling would cost you at today's rates versus where they're heading. The reliefs are shrinking on a published timetable, that part isn't speculation.

Stress-test your payroll. If wage rules or contract rules tightened, you should be able to see the impact on your margin fast.

Keep your structure under review. Salary, dividends, how you extract money from your company, the right strategy shifts depending on what the tax rates are. What was optimal two years ago may not work coming into the next Budget in the autumn, so keep tabs.

A new Prime Minister is a good reminder of a simple truth: the rules you build your business around are not always fixed. It isn't about watching Prime Ministers Questions every week, but simply by ensuring you have your ducks in a row to be able to adapt to economic change. The easiest way to do this? Finding a partner that can help strengthen your position before it becomes an issue.

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