Britain’s small business community is reacting with concern after the recent Westminster by-election victory of Greater Manchester Mayor Andy Burnham, with new polling suggesting widespread anxiety over what his growing political influence could mean for the economy.
Exclusive research from Trends Research, based on a survey of 2,000 small and medium-sized enterprise owners conducted shortly after Burnham’s win in Makerfield, found that more than 80% expressed fear about the potential impact on their businesses if he were to play a leading role in national government.
Burnham secured nearly 55% of the vote in last Thursday’s contest, defeating Reform UK and gaining a seat in the House of Commons. Under Labour Party rules, his return to Westminster has fuelled speculation that he could mount a future leadership challenge against Sir Keir Starmer, intensifying scrutiny over his policy agenda and long-term ambitions.
For many business owners, however, the political mechanics are secondary to concerns over direction. Burnham has built his reputation on a more interventionist economic platform, with past proposals linked to higher redistribution, expanded local taxation, and measures such as potential land value-style levies and tourist charges. While none of these policies are currently government policy, they have contributed to uncertainty among entrepreneurs already dealing with rising costs and tighter margins.
The survey highlights the scale of unease within a sector that represents more than 5.5 million businesses and accounts for over 99% of the UK’s private enterprise base. Analysts note that confidence among small firms has been fragile in recent years, with inflationary pressures, tax changes, and labour costs already weighing heavily on investment decisions.
Separate industry research has pointed to growing stress among small business owners, and the latest findings suggest political volatility is adding to those pressures. Many respondents indicated that even the prospect of policy shifts is enough to affect hiring plans, expansion strategies, and long-term financial planning.
Despite the strong reaction, the picture is not uniform. Burnham has not formally declared any leadership challenge, and Sir Keir Starmer has made clear he intends to remain in post. The mayor has also previously positioned himself as supportive of regional growth and has advocated targeted relief for sectors such as hospitality, including lower VAT rates.
The survey’s authors suggest that the sentiment captured reflects uncertainty rather than firm opposition. In an environment where fiscal and regulatory decisions can quickly alter operating conditions, business owners appear increasingly sensitive to political developments at Westminster.
What the findings underline is a sector closely attuned to national politics and highly reactive to perceived instability. With taxation, employment regulation, and investment incentives all subject to change depending on government direction, small firms continue to prioritise predictability above all else.
For now, the mood among many entrepreneurs remains cautious. Rather than waiting for clarity, a significant proportion of Britain’s job creators appear to be preparing for potential disruption ahead.
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