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With the UK preparing for yet another change at the top after Keir Starmer announced he will step down as Prime Minister. This kind of political news is less about who is voted in and more so about what would actually come next for the economy with these changes.

Think about it like this: the next minister would make this Britain鈥檚 seventh PM in 10 years. This is just a continuation of a pattern that we鈥檝e been seeing since the Brexit vote in 2016.

The financial markets very quickly reacted to the news after Bloomberg reported that the pound traded near its lowest level of the year after Starmer鈥檚 announcement. Sterling briefly touched $1.3181 on Monday, moving close to the 2026 low of $1.3159 recorded in March.

For SMEs already dealing with rising costs, economic uncertainty and changing regulations, another leadership contest brings up this question: what exactly do businesses need from government today?

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How Much Political Turnover Have Businesses Seen?

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Many SME owners have spent the last decade adapting to a near constant stream of political developments. The New York Times also brought up the many ministers since 2016 in an article called, 鈥淗ow Many Prime Ministers Has the UK Had Since Brexit?鈥�

The publication mentioned how David Cameron resigned after the Brexit referendum in 2016, and then Theresa May followed in 2019 after failing to secure parliamentary backing for her Brexit plans. Boris Johnson left office in 2022 after a series of scandals, and Liz Truss lasted only 50 days after introducing an unfunded tax package that sent financial markets into turmoil.

Rishi Sunak then took over before calling a general election in 2024 and Labour won that election under Keir Starmer, who promised a break from years of political instability. Two years later, Britain is once again preparing for a new leader.

These frequent changes can make long term planning a lot harder. Policies, priorities and economic messaging can all change within relatively short periods of time.

To be clear, it doesn鈥檛 necessarily mean every government brings entirely new rules, but it does create uncertainty around what policies will look like a few months to a year later.

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What Is Happening With UK SMEs Right Now?

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Recent data from Employment Hero shows that many SMEs have continued hiring despite difficult trading conditions, which is interesting considering other reports show there鈥檚 a slowdown in hiring lately. Kevin Fitzgerald, UK Managing Director at Employment Hero, said, 鈥淐hanges in Government are always challenging for SMEs in the UK who are just starting to see some slow recovery after a period of significant turbulence.

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鈥淲hat businesses in the UK will be looking for now is clarity and stability. What we鈥檝e seen over the past 1 to 2 years is businesses trying to navigate increasing costs and complexity whilst continuing to push for growth.鈥�

Employment Hero鈥檚 latest data found employment growth across UK SMEs came in at 1.2% month on month in May.

So, yes, hiring activity may be continuing, but businesses are facing rising employment costs. Employment Hero reported that full time pay went down by 1.5% against three months earlier.

Many SME owners are now weighing recruitment plans against higher wage bills, tax obligations and operating costs. Political uncertainty adds another factor to an already complicated environment.

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What Do Businesses Want From The Next Government?

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Basically, business owners want certainty around economic policy, employment costs and the rules that affect investment decisions.

Fitzgerald said, 鈥淭he uncertainty that will now follow risks stalling the progress that we are beginning to see among SMEs. We鈥檝e seen the seismic impact that policy change can have on the UK jobs market and whoever is steering the UK economy moving forward needs to provide our country鈥檚 small businesses with a solid foundation so that they can continue to hire and create the opportunities that will ultimately drive the country forward.鈥�

That desire for stability comes as financial markets assess what a new Labour leader could mean for government spending and the UK鈥檚 fiscal outlook. Bloomberg reported that traders were already considering how a new administration could affect public finances as the pound weakened following Starmer鈥檚 announcement.

Many SMEs now seem to be less interested in who occupies Number 10 and more interested in knowing the rules of the game will stay consistent long enough for them to invest, hire and grow with confidence.