What does Burnham’s latest conference speech mean for small businesses?

Andy Burnham has used his first Labour Party Conference speech as prime minister to promise cheaper energy for British businesses. The catch: it could take up to ten years.  

He also announced the launch of the Great British Grid, a publicly owned company that will compete with private-sector operators. Business groups have welcomed the focus on energy costs, yet for small businesses already struggling with high bills, a decade is a long time to wait.

With few details published so far, the 28 October Budget is the next real chance to see what’s on the table. But for now, here’s what the speech means for small firms, and what you can do about your bills in the meantime.

Energy bills will be lowered, but there’s a wait time

The clearest pledge for business in Andy Burnham’s speech was about energy costs. 

Burnham addressed that high energy costs are one of the biggest barriers to growth, with British businesses and bill payers paying some of the highest prices in Europe – driven by a mix of soaring grid prices and the conflict in Iran. 

His promise is to bring down costs in line with neighbouring countries within ten years. To achieve this mission, he announced the creation of the Great British Grid, a publicly owned company that will compete with private-sector operators. 

The major caveat is the timeline. With everyone from restaurants to office spaces facing high bills today, the British Chambers of Commerce points out a decade-long target will do little to address immediate concerns, and is calling for more detail on the new public body.  

There is one nearer-term change. VAT on electricity is being scrapped from this week, which the BCC said will benefit consumers and the very smallest businesses. For anyone bigger, the 28 October Budget is the next chance for relief.

Greater public control raises concerns for business

Burnham also confirmed a strengthened Water Bill, which will repeal the ban on public ownership of water companies. 

He said it will begin a ten-year shift towards a different system, with mayors given new powers over water companies and the option of taking back control from those that repeatedly fail.

However, the response from business groups was cautious. The BCC warned that state control shouldn’t be the default answer to poor utility performance, saying firms need certainty, and the CBI said public investment in the Great British Grid should crowd in private capital, not push it out.

For small businesses, the question is whether public involvement speeds up grid connections and improves service, or just adds uncertainty. With a ten-year timeline and few details so far, firms will only find out in time.

Ultimately, while the speech offered some breadcrumbs of optimism, the BCC stressed that the 28 October Budget will be the “critical test”, and that it must cut costs and unlock growth. Until then, small businesses are left waiting to see what relief, if any, arrives.