Andy Burnham used his first speech as Prime Minister to set out a promise of major change, describing the moment as a “circuit breaker for Britain”.
Since the former Mayor of Manchester announced his intentions to stand for the country’s highest office, speculation has been mounting over what a Burnham-led Government could mean for the UK economy and businesses facing continued financial pressure.
Now, with his first major address delivered and his Government beginning to take shape, attention is turning to how those ambitions could translate into policy and what impact they may have on businesses navigating challenging trading conditions.
We have broken down the commitments Burnham has made in his first few days as Prime Minister and asked our restructuring and insolvency team what they could mean for businesses.
What has Andy Burnham committed to in his first few days as Prime Minister?
Burnham has outlined plans for a 10-year strategy, aimed at reshaping the country’s political and economic model. As part of this, he has pledged to put life’s essentials under stronger public control to make them more affordable, to re-industrialize Britain through public procurement that backs local industry, and to set out immediate cost-of-living measures.
He has also pledged to help more young people into work by changing the education system and increasing mental health support, while building more council homes and taking action to end rough sleeping.
For businesses, one of the most notable aspects of his speech was his pledge to “reward success and not failure”. While the practical implications of that commitment remain unclear, it may suggest a potentially different approach to businesses facing financial distress and raise questions about the balance between corporate rescue, restructuring and state intervention.
What could Burnham's comments mean for businesses facing financial distress?
However, with corporate insolvencies continuing across the economy and major restructuring situations such as Thames Water still unresolved, Sonia Jordan, Partner in the Restructuring & Insolvency team at Knights, and president of R3, the trade association for the entire community of the UK's insolvency and restructuring professionals, believes businesses and investors will be looking for greater clarity on how the Government intends to balance corporate rescue, public interest and intervention in strategically important industries.
Sonia says, "One of the comments that struck me immediately in the Prime Minister's speech was his commitment to ‘reward success and not reward failure’.
"At this stage, it isn't entirely clear what that means in practical terms. However, as an Insolvency lawyer looking at the current news landscape, it’s easy to think about some of the most significant financial distress situations currently facing the UK economy.
"The obvious example is Thames Water. The debate there has centred on who should ultimately bear the cost of resolving the company's financial difficulties and whether that burden should fall on investors, lenders, customers or the taxpayer.
“Equally, recent intervention in British Steel has demonstrated a willingness by Government to step in where wider economic and strategic considerations are at stake.
"The latest insolvency figures show that corporate insolvencies decreased by 10% in May 2026 falling from 2,087 cases in April to 1,868. Over the same period, personal insolvencies increased by 2%, in May 2026 compared to the previous month rising from 10,995 to 11,223.
It indicates that while financial pressures have by no means disappeared, many businesses facing distress are not failed businesses. In many cases, they remain fundamentally viable businesses dealing with short-term pressures, and restructuring can play a vital role in preserving jobs, protecting value and supporting recovery.
"That is why businesses, lenders and investors will be looking closely for greater clarity following today's remarks.
"The key question is where this Government sees the balance between established restructuring processes and state intervention, particularly where strategically important businesses are concerned, and what role it believes corporate rescue should play in supporting economic growth.
"It remains to be seen how today's comments translate into policy, but there will undoubtedly be significant interest in whether they signal a different approach to financial distress and corporate recovery in the years ahead."
For more information on how potential policy changes could affect your business, contact Sonia Jordan or the Restructuring and Insolvency team.