In a climate where uncertainty has become the norm, the new government under Andy Burnham is up against a crucial test. It must prove it can provide consistent policies to rebuild trust among businesses. Already, leaders in the corporate world are closely watching for signs that the administration is genuinely committed to acting as a 'friend to business'. Alan Vallance, CEO of the Institute of Chartered Accountants (ICAEW), warns that constant shifts in tax rules and regulations have chipped away at confidence. He argues that introducing new levies or regulatory hurdles will only deepen the unease currently affecting firms.
Vallance points out that accountants, who interact daily with firms throughout the UK, are witnessing a trend of caution. The most recent Business Confidence Monitor paints a clear picture: business sentiment is in negative territory. Companies are hesitating when it comes to investing, and Vallance believes that a clear promise at the start of this government’s term to avoid new business taxes would help send a strong signal of stability. This could encourage firms to plan with greater confidence, knowing they won’t face sudden fiscal surprises.
The issue of regulation is just as pressing. Over the years, governments have added layers of rules and reporting obligations onto an already complex system. This has created a growing administrative burden that takes away time and resources from key growth areas like innovation and customer engagement. Vallance insists that simplifying the system is not about cutting corners. Rather, it’s a necessary shift to allow companies to focus on what drives expansion and success, instead of being bogged down by compliance work.
While many businesses back the government’s growth agenda, especially in sectors like regional development, skills training, and infrastructure, this support is not unconditional. Vallance cites a recent survey by ICAEW, where 57 percent of members identified the tax burden as the top issue the government must tackle in the first 100 days. Meanwhile, 43 percent highlighted regulation as another critical area that requires urgent reform. These responses show that the corporate sector is waiting for clear, focused action on priorities that directly affect their bottom lines.
Building a Constructive Partnership with Business
Despite their cautious approach, businesses aren’t resisting the government’s growth plans. Rather, they are waiting to see if these plans are backed by real policy decisions. Vallance notes that 40 percent of ICAEW members believe the government’s proposals for revitalizing towns, upgrading infrastructure, and boosting local economies will benefit their organizations. Similarly, a third of members see workforce skills development as a major focus for the new administration. This level of support suggests that the business community is not inherently opposed to the government’s goals. Instead, it expects these goals to be supported by policies that create a stable and predictable environment for firms to operate.
For Burnham and his team, the challenge lies in proving that the UK isn’t just 'pro-business' in words, but in real, tangible actions. If the government can restore the confidence businesses need to make long-term investments, the results will speak for themselves. Vallance emphasizes that the right mix of stability, simplicity, and support will allow firms to respond with measurable economic and social progress. The opportunity for Burnham, John Healey at the Treasury, Jonny Reynolds in Business, and the wider Cabinet is to go beyond rhetoric and show that the government truly understands how business decisions are made.
The ICAEW survey clearly shows that businesses are not looking for reasons to say 'no'. They are prepared to back the government’s initiatives because they recognize the long-term benefits these efforts could bring to communities, employers, and the economy. What they need is a clear signal that these ambitions will be supported by a tax system that remains predictable and by regulations that are proportionate and practical. If the government can deliver this, businesses will rise to the challenge and drive the growth the country so desperately needs.
Alan Vallance, chief executive of ICAEW, stresses that the message for the new Prime Minister is straightforward. Businesses are ready to contribute to a thriving UK economy—but only if they believe the policies in place are designed to support their efforts. This is the moment for Burnham to reset the relationship between government and business. With the right approach, the UK could build a partnership that delivers not just economic success, but a shared vision for growth and stability for all.