We’ve Got a New PM and Chancellor — Here’s What It Actually Means for Your Business
By Kawsar Ahmed, Director, Tyytax Accountants
If you switched on the news this week, you’ll have seen it: Andy Burnham is now Prime Minister, and within hours of taking office he’d handed the keys to the Treasury to John Healey. A few clients have already asked me the same question in different words — “does this change anything for me?” So I wanted to put down my honest, practical take rather than let the headlines do the talking.
Short answer: probably not much yet. But there are a few things worth keeping an eye on, and I’d rather flag them now than wait until they’re urgent.
Healey isn’t exactly an economics guy — and that’s telling
What’s interesting about this appointment is that Healey’s background isn’t in finance at all. He was Defence Secretary until a month ago, and before that his big political interest was housing. People who’ve worked with him describe him as steady and cautious rather than someone itching to shake things up. Early noises out of Downing Street point the same way — sticking with the existing fiscal rules, just with a bit more room to manoeuvre where possible.
My take: don’t expect fireworks in the tax system overnight. New governments talk a big game in week one and then the real detail shows up at the first Budget. That’s when we’ll actually know something.
The bit I’d genuinely keep an eye on: defence spending
Here’s the thing that stood out to me. Healey quit as Defence Secretary because he thought the government wasn’t spending enough on defence. Now he’s the one in charge of the money. Read into that what you will, but if defence spending does go up significantly, that money has to come from somewhere — tax rises, more borrowing, or cuts elsewhere.
For our clients, that “somewhere” question usually lands on a few familiar doors:
• Corporation tax
• Employer National Insurance
• Business rates relief — particularly if you’re in hospitality or retail
• Capital allowances and investment reliefs
Nothing’s been proposed yet. But this is exactly the kind of thing I’d rather mention early than have someone find out about after the fact.
Markets barely blinked
Sterling dipped a touch and borrowing costs ticked up slightly after Healey’s first comments, which is fairly standard whenever there’s a change at the top. It’s not something I’d act on. If you’re weighing up commercial finance or thinking about refinancing, it’s just one more reason to keep half an eye on rates over the next few weeks rather than something to panic about.
What I’d actually suggest doing right now
• Hold off on big decisions based on rumour. There’s no policy yet — just an appointment.
• Keep your books current. Whatever changes come, being on top of your numbers means you can react fast instead of scrambling.
• Tell us before you commit to anything major. Big spending, hiring, or investment plans — loop us in early so we can factor in anything that changes.
• Wait for the Budget. That’s when we’ll get real numbers instead of speculation.
We’ll do the watching so you don’t have to
Sorting the genuine policy changes from the noise is part of what we’re here for. The moment there’s something concrete — a Budget, a fiscal statement, anything with real numbers attached — I’ll get an update out to clients with what it actually means for your business, in plain English.
If you want to talk through how any of this might touch your specific situation, get in touch — happy to have a conversation.
Kawsar Ahmed
Director, Tyytax Accountants