This week, the UK got a new Prime Minister. Andy Burnham — the former Mayor of Greater Manchester — walked into Number 10 on Monday 20 July 2026, following Keir Starmer’s resignation last month. And in a move that surprised most of Westminster, he appointed John Healey as Chancellor, passing over several better-known names to hand the Treasury to his former colleague from the Blair years.
For business owners, sole traders, landlords and the self-employed, a change of Prime Minister always raises the same question: what does this mean for me? Will taxes go up? Will anything get simpler? Is now the time to make that big business decision, or should I wait and see?
The honest answer right now is: some things are already clearer than others. We know what’s been ruled out. We know one confirmed benefit is already on its way. And we know the big moment — an Autumn Budget billed as “ambitious” and “one-off” — is just a few months away. Here’s what you need to know as a business owner or self-employed person in Suffolk and beyond.
Who Are Burnham and Healey?
Andy Burnham is probably best known to most people as the Mayor of Greater Manchester — a role he’s held since 2017 — where he built a reputation as a pragmatic, pro-business operator who got things done. He introduced the UK’s first city-wide bus network, drove major investment into the region, and repeatedly made the case for devolving power away from Whitehall. His pitch for the top job centred on doing the same thing nationally: giving local areas more control over their own economic futures.
John Healey is the bigger surprise. The new Chancellor previously served as Defence Secretary and, before that, spent five years in the Blair-era Treasury as Economic Secretary and then Financial Secretary — so he does know his way around a spending review. His appointment was unexpected but his Treasury background means the markets haven’t panicked. He now faces the challenge of working within tight fiscal rules while delivering on Burnham’s ambitious agenda.
What Has Already Been Confirmed?
In the hours since the new Cabinet was announced, a handful of things have already been made clear:
- No increases to income tax main rates, employee National Insurance, or VAT. Burnham has explicitly pledged to honour Labour’s existing manifesto commitments on these three. Whatever else the Autumn Budget might contain, your income tax rate, your employee NI deductions and the standard VAT rate are not going up.
- Corporation tax will stay at 25%. The manifesto committed to capping it there, and Burnham has confirmed this continues. If you run a limited company, your tax rate isn’t changing.
- VAT is being removed from household energy bills from 1 October 2026. This is a confirmed policy — the 5% VAT on domestic energy will go. If your home is your primary workplace, or you run a business from home, this is a small but real saving.
So three taxes that will not go up, and one confirmed saving on energy. That’s actually a fairly solid platform of certainty for the next few months.
The Personal Allowance: Could the Freeze Finally Thaw?
Here’s one of the most interesting signals to come out of the leadership transition. The income tax personal allowance — the amount you can earn before paying any income tax — has been stuck at £12,570 since the 2022/23 tax year. Under the previous government, that freeze was extended all the way to 2030/31.
When pay rises but the threshold doesn’t, more of your income gets pulled into the tax net automatically. It’s sometimes called “fiscal drag” — a stealth tax increase by another name. Over the past few years, a significant number of people have been dragged into the basic-rate or higher-rate bands simply because the frozen threshold hasn’t kept pace with wages.
Burnham has said he wants to “look at this” and has pointed to lower earners being particularly affected by the freeze. An increase to the personal allowance — even a modest one — would benefit employed people, self-employed sole traders, landlords, and anyone earning below the higher-rate threshold. It’s not a done deal, but it’s firmly on the table for the Autumn Budget.
Employer National Insurance: Relief for Small Business Employers?
This is the one that will matter most to small business owners who have staff. In April 2025, employers’ National Insurance went up — the rate rose from 13.8% to 15%, and the threshold at which employers start paying was lowered. For many small businesses, that was a painful double hit: paying more on every employee and paying it sooner.
Burnham has been remarkably direct about this. He said the weight of that employers’ NI increase “wasn’t the right decision.” He’s unlikely to simply reverse it — that would cost billions — but there is genuine speculation that the Autumn Budget will contain some relief: whether that’s raising the threshold, adjusting the rate, or targeting support at the smallest employers.
Imagine you run a small café in Ipswich with five members of staff. The April 2025 employers’ NI increase added hundreds of pounds a month to your wage bill. Any rollback, even partial, would make a real difference to whether you can afford to take on an extra pair of hands.
Business Rates: Better News for the High Street?
Business rates reform has been a long-running saga — every government promises to sort it, few actually do. Burnham seems genuinely motivated here, partly because of what he’s seen in Greater Manchester, where high street decline has been a major issue.
His specific pledges on business rates include:
- A 20% reduction for pubs, clubs, and music venues (going beyond the previous government’s planned 15% relief)
- Raising the threshold for small business rate relief, so more independent shops, cafés, and retailers pay nothing or less
- Higher levies on large out-of-town warehouses and online distribution centres to fund the high-street relief
If you run a retail shop, pub, restaurant or leisure business in a town centre, these changes could translate into real savings on one of your biggest fixed costs. The detail hasn’t been fully worked out yet, but the direction of travel is clear: relief for the high street, funded in part by the big logistics operators.
What About the Self-Employed?
If you’re a sole trader — whether you’re a builder, a freelancer, a hairdresser, or a consultant — the most directly relevant near-term change is likely to be the personal allowance question. An unfreeze or increase would reduce the amount of your profits that are taxed at 20%, which is money back in your pocket.
Beyond that, Burnham has broadly signalled that self-employment and entrepreneurship matter. His “Good Growth Funds” concept — modelled on what he did in Greater Manchester — would see regional investment funds better targeted at start-ups and growing businesses. It’s still more of a direction than a policy, but the intent is to make capital more accessible outside London.
One thing self-employed people are raising loudly: the VAT registration threshold. At £90,000 turnover, crossing it means charging VAT on your sales overnight — a 20% jump in the effective price of your services. Many sole traders deliberately keep their turnover below this level, which caps their growth. There has been no specific announcement on this, but it’s a reform that business groups are pushing hard for, and the new government has talked about simplifying systems and supporting growth.
Landlords: What Might Change?
If you own rental property, the picture is more mixed — and more speculative at this stage. Here are the things worth watching:
- Capital Gains Tax: There is ongoing speculation that CGT rates could be reviewed — potentially bringing them closer to income tax rates. Nothing is confirmed, but if you’re considering selling a rental property, it’s worth having a conversation with your accountant about timing before any Budget announcement.
- Agricultural Property Relief: The April 2026 changes that capped APR at £2.5 million may be reconsidered. Burnham has said he’d look again at the impact on genuine family farms, distinguishing them from larger commercial operations.
- Property tax reform: Burnham has long been an advocate of council tax reform and has expressed interest in alternatives like a Land Value Tax. This is longer-term territory — nothing imminent — but worth being aware of as a direction.
- Pension changes and IHT from April 2027: Regardless of the change in leadership, the previously announced changes bringing unspent pension pots into Inheritance Tax are still proceeding. If estate planning is relevant to you, this one needs attention now.
What Is Definitely NOT Changing?
It’s worth being clear about what is staying put, because it’s easy to feel uncertain in the weeks after a change of government:
- Income tax main rates — staying as they are
- Employee National Insurance — not going up
- VAT rate — 20% standard rate is not changing
- Corporation tax — capped at 25%
- Making Tax Digital — the rollout continues regardless of who is in Number 10. If you’re a landlord or sole trader earning over £50,000, you are already mandated and your first quarterly deadline is 7 August (see our recent post on this). If you earn over £30,000, April 2027 remains your date.
The Autumn Budget: Mark Your Calendar
The big moment is coming. Burnham has described his first Budget as a “big, one-off” event and an “ambitious overhaul” — language that suggests it will be more than a routine fiscal statement.
When will it happen? Parliament is about to go into summer recess. After it returns in September, the Office for Budget Responsibility (OBR) needs at least ten weeks’ notice to prepare its independent forecasts. That points to October or November 2026 as the most likely timing.
For businesses and self-employed people, the Budget is the moment when speculation becomes policy. It’s when we’ll know what the personal allowance will actually do, what happens to employer NI, how business rates reform will be structured, and whether any other tax changes are coming. Between now and then, the advice is straightforward: don’t make major financial decisions based on rumour or speculation — but do make sure you’re talking to your accountant so you’re ready to act quickly once the detail lands.
What This Means for You
A new Prime Minister and a new Chancellor always bring a mixture of uncertainty and opportunity. Here’s our plain-English summary of where things stand right now:
- The big three — income tax, VAT and employee NI — are not going up. That’s confirmed.
- Corporation tax stays at 25% for limited companies.
- Energy bills will be cheaper from October with VAT removed from domestic energy.
- The personal allowance freeze may ease — potentially good news for sole traders and employees alike.
- Employer NI relief could be on the way for small businesses with staff — watch the Budget.
- Business rates reform looks genuine and could benefit hospitality, retail and leisure businesses on the high street.
- Landlords should keep an eye on CGT and the pension IHT changes already scheduled for April 2027.
- Making Tax Digital is proceeding — no new government changes that timetable.
The most important thing you can do right now is stay informed and stay in touch with your accountant. When the Budget lands in the autumn, decisions may need to be made quickly — on timing of asset sales, salary and dividend strategies, pension contributions, business investment. Being prepared means you’re able to act, not just react.
This is a general guide, not personal advice — please check with us about your own situation.
