Sir Keir Starmer resigns as Prime Minister with Andy Burnham poised to take over

Todd Davison, managing director at Purbeck Insurance Services, said: “The departure of Keir Starmer as Prime Minister adds yet another layer of uncertainty to an already difficult environment for small businesses.

“Over the past 12 months, small business owners have absorbed higher employer National Insurance contributions, rising energy costs, and persistent pressure on access to finance.

“The prospect of a prolonged leadership transition — and the policy vacuum that inevitably comes with it — is the last thing they need.

“Small business owners don’t have the luxury of waiting. Decisions about hiring, investment, and borrowing are being made now, against a backdrop of economic stagnation and a cost-of-living crisis that has squeezed consumer demand and margins alike.

“Political instability doesn’t pause for a Labour leadership contest.

“For directors who have relied on personal guarantees to secure business lending, the stakes are particularly high. Any period of transition risks delaying the policy decisions — on business rates, planning reform, and access to finance — that could meaningfully ease the pressure many are operating under.

“Whoever succeeds Starmer will inherit an inbox full of urgent small business issues. The question is whether a new leader has the political bandwidth, and the appetite, to act on them quickly.”