Andy Burnham as prime minister ‘would cut both ways for self-employed contractors’

Sir Keir Starmer yesterday resigning as prime minister and Andy Burnham vowing to run to replace him “cuts both ways” for contractors and the self-employed, ContractorUK can reveal.

Burnham — as Mayor of Greater Manchester from 2017 to 2026 — has established himself as a political “interventionist,” and “that should give the contractor sector pause,” warns the FCSA.

Therefore, on the ‘Conduct Regs’ and Zero Hours Contracts (which Labour is both consulting on), Burnham won’t likely want a mere tinkering, indicates the Freelancer & Contractor Services Association (FCSA).

What will Andy Burnham do as PM?

“[On these two key contractor sector issues] I would expect Andy Burnham to lean towards more regulation rather than less,” Chris Bryce, FCSA’s chief executive, said yesterday to ContractorUK.

“That is not automatically a bad thing, but the detail matters enormously.

“Contractors and the umbrella company sector have been hit by wave after wave of change in recent years. And what we need now is stability and clarity, not another round of well-meaning reform that misfires in practice.”

What has Andy Burnham pledged on employer NICs?

More auspiciously for contractors, Burnham used his campaign for the 2026 Makerfield by-election to float the idea of cutting employer NICs, by saying “Labour has got it wrong on small businesses.”

Burnham won that campaign earlier this month (with a resounding 55% of the vote), in a result that returned him to the House of Commons.

That return makes the new Makerfield MP now eligible to run for prime minister.

“If [Burnham’s floated cut to employers' National Insurance] materialises [in the event he becomes PM], it would be a real and welcome boost for umbrella company employees,” says FCSA’s Mr Bryce, who himself recently transferred from the CEO of IPSE to the CEO of FCSA.

Do umbrella company contractors pay employer National Insurance?

“Umbrella contractors carry the cost of employers' NI in a way many people still do not fully understand. Anything that puts more money back into the pockets of people [like umbrella staff] doing hard work deserves a fair hearing.”

In with his personal, political philosophy of what he has termed “business-friendly socialism”, Mr Burnham has stuck up for limited company directors.

In fact, at a time when income support from the previous Conservative government during covid was widely acknowledged to be inadequate, Burnham said more should indeed be done.

What has Andy Burnham told ContractorUK about limited company contractors?

Asked by ContractorUK why the government appeared to be leaving contractor limited company workers out in the cold during a pandemic, Mr Burnham signalled to this website in March 2020 that it was a fair question to ask.

“It’s getting to the point where you have to start asking….[that] question — is this a deliberate exclusion or an oversight?” Mr Burnham responded to ContractorUK, on a video call arranged by Forgotten Ltd.

“That’s the question the government is leaving out there. So even if the chancellor stood up and said, ‘It is complicated; I can't give you all the details today, but...I hear your voices.’ That, in itself, would be worth everything.”

Addressing then-chancellor Rishi Sunak (before Spending Review 2020), Mr Burnham added: “Saying it with words…would be a start. But natural justice and fairness say [ultimately], something needs to be done.”

What does an IR35 expert think about Andy Burnham?

Yesterday, an IR35 adviser to the contractor sector headed off any suggestion that the former health secretary’s show of support for incorporated business owners was political posturing.

“I worked with Andy Burnham as part of the policy campaign during covid when he was a metro mayor… to try and help those who could not get proper financial support outside of SEISS”, began the adviser, Rebecca Seeley Harris of Re Legal Consulting.

“[And Andy Burnham] was actively engaged in trying to help those who were [suffering from] gaps in [financial] support.”

Is Andy Burnham definitely going to be the next PM?

But currently, Mr Burnham is not guaranteed to become the UK’s next prime minister.

If approved by Labour’s National Executive Committee, a contest featuring other Labour MPs could be held, leading to a new leader (and new occupant of No 10) by September 2026.

Before then, nominations for Labour’s new leader will open to the party on July 9th 2026.

How soon could Andy Burnham become prime minister?

If there’s no contest or no challenge to Mr Burnham, he could become prime minister on July 17th 2026.

It’s a political process that an emotional Sir Keir Starmer outlined in his resignation speech in Downing Street.

Sombre, downbeat, and at times on the verge of tears, Sir Keir gave the speech yesterday morning.

What did Keir Starmer say in his resignation speech?

After crediting Labour under his watch with introducing the “biggest improvement in workers’ rights in a generation,” and transforming Labour from (“six years ago”) being “politically, financially and morally bankrupt,” Sir Keir said:

“The question being asked now is whether I am best-placed to lead Labour into the next general election. I have heard the answer of my parliamentary party to that question, and I accept that answer in good grace.

“Every decision I’ve taken has been about putting the country I love first. And that is why I will resign as leader of the Labour Party.”

LCAG reaction to Sir Keir Starmer resignation

Steve Packam, co-founder of the Loan Charge Action Group (LCAG), all but welcomed the resignation, although Sir Keir will stay on until his successor is in post.

“Keir Starmer expressed concern about the Loan Charge scandal in opposition, and his ministers promised a ‘truly independent review,’ Mr Packham began last night in a statement to ContractorUK.

“Well, that turned out to be one of the many broken promises and U-turns of his time as prime minister.”

Packham added that, despite the vow of independence, the ensuing McCann Review was “biased”.

Did people stop trusting Keir Starmer?

He observed that the review was run “by a former HMRC assistant director who worked in the same team as people who introduced the loan charge.”

“[The Ray McCann Loan Charge Review] started from the position that the loan charge should remain,” LCAG’s co-founder added.

“But it wasn't a review of the loan charge, and it certainly wasn't independent. This kind of thing is why people lost trust in Keir Starmer's government.”

What did Labour show under Keir Starmer?

Posting its statement to LinkedIn under a large, capitalised “THANK YOU,” Labour Business had an almost opposite reaction to Sir Keir’s announced departure.

“Under his leadership, Labour returned to government and demonstrated that being pro-worker and pro-business are not competing priorities,” claimed the group, referring to Sir Keir.

“He championed a vision of Britain where enterprise, investment and innovation sit alongside strong employment rights and economic security.”

What did Starmer’s Labour Party do for freelancers and the self-employed?

Labour Business added: “His leadership helped make the case that supporting business, workers, freelancers and the self-employed is part of the same mission: building a stronger and more prosperous Britain.”

To win the ‘contractor vote’ at the next general election, whoever succeeds Sir Keir as prime minister will need to “very quickly address” IR35 and off-payroll working, says IR35 contract review firm Qdos.

The firm’s CEO, Seb Maley, said the “key” contractor issues facing Sir Keir’s successor extend as far as employment status simplification, the small business tax burden and tax simplification.

What does Andy Burnham need to do as PM?

But according to Mr Maley, there’s no question it’ll be Mr Burnham picking up the keys to No 10.

“It doesn’t seem like a case of ‘if’….[but rather ‘when’ Mr Burnham] becomes PM,” Mr Maley wrote.

“If Burnham is to win the support of the UK’s independent workforce – who have been let down again and again by recent PMs – he needs to outline his position.”

What are Andy Burnham’s policies on IR35 and the Loan Charge?

ContractorUK yesterday invited Mr Burnham to outline his position on both IR35 and the Loan Charge.

A former founder of PCG (now IPSE), which was set up to secure a repeal of IR35, Philip Ross — who is now the vice-chair of Labour Business — last night told ContractorUK:

“I hope that the next prime minister and leader of the Labour Party will carry forward a pro-growth agenda.

“[At the agenda’s heart] must be the realisation that small businesses and the self-employed [will] be key drivers of that growth, especially the contributions of a skilled and professional workforce.

“I'd hope that removing blockers affecting the mobility of such a workforce, like over-compliance of IR35 and OPW, would be the top of the list. And on the other side of the coin, [Labour’s new leader must] protect workers by ensuring that employment taxes trigger proper employment rights.”

Andy Burnham, what does he stand for?

In his statement to ContractorUK, LCAG’s Steve Packham said: “We hope that once he is Prime Minister, Andy Burnham, who has a record of challenging injustices, will appoint a new chancellor and new Treasury ministers who will do the right thing and announce a proper independent inquiry of the whole Loan Charge, rather than carrying on the same failed and costly approach.

“Wes Streeting has been strong about his criticism of the Loan Charge in the past. And we hope that, if given a key role [in Burnham’s government], he will accept that a fundamentally different approach is needed — not just tinkering with settlement terms which otherwise will mean thousands of cases will drag on for years, with all the consequences of that to those affected and to the ever-increasing costs to the taxpayer.”

What is the FCSA’s message to the UK’s next prime minister?

FCSA’s Chris Bryce, himself a former IT contractor, told ContractorUK: “My message to whoever leads the next government is straightforward.

“Talk to the people who actually run [the contractor and umbrella company] market before you legislate. The self-employed, contractors, and the umbrella workforce are not a ‘problem’ to be managed; they are a huge and productive part of the economy. Get the policy right and everyone benefits. Get it wrong, and it is the contractor who pays.”