Britain needs a ‘culture shift’ to grow, Burnham will tell business chiefs
The Prime Minister will host a series of events in No. 10 focused on pitching his Government as a “partner for growth” which can offer a stable arena for investment in the UK.
Andy Burnham will call for a “culture shift” as business leaders head to Downing Street on Monday to pledge to support entrepreneurs.
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The Prime Minister will host a series of events in No. 10 focused on pitching his Government as a “partner for growth” which can offer a stable arena for investment in the UK.
In the run-up to the event, Mr Burnham said Britain has “everything it needs to succeed” but needs “a culture shift” in how it handles business if it wants to “unlock its full potential”.
He said: “That means putting Government firmly on the side of the people who take risks, start companies, create jobs and bring new ideas to life.
“It means ensuring ambition is rewarded, making it easier to start and grow a business, and giving people the confidence that if they have a great idea, they’ll get all the support they need to bring it to life.”
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On Monday, Mr Burnham will host a roundtable with entrepreneurs including the founders of Octopus Energy, Revolut and Starling Bank, before welcoming chief executives from some of Britain’s largest businesses for a reception in No 10 along with regional mayors.
Attendees are expected to include the bosses of HSBC, Rolls-Royce, Morrisons, BAE and Shell.
Monday’s round of meetings comes as Mr Burnham and Chancellor John Healey weigh options for their first Budget on October 28.
The Prime Minister has vowed to deliver growth across the country, devolving power and resources away from Westminster to do so.
But Mr Healey faces a tough environment, delivering his Budget amid rising borrowing costs, persistent low growth and the impact of the Iran war on the global economy.
Although he received some good news last week when official figures showed an unexpected rise in economic growth in July, economists have warned rising energy costs could have slowed momentum in August and September.
Suren Thiru, chief economist for the Institute of Chartered Accountants in England and Wales, said Mr Healey could be left with a “Budget headache” if economic growth starts to dwindle, “as more muted growth and surging borrowing costs erode his fiscal headroom, raising the prospect of further tax rises”.
Both Mr Burnham and Mr Healey have stressed their commitment to the fiscal rules laid down by former chancellor Rachel Reeves, which require day-to-day spending to be covered by taxation and overall government debt to fall as a share of the economy by 2029/30.
They also remain bound by Labour’s manifesto commitment not to raise income tax, national insurance or VAT.
Shadow business secretary Julia Lopez MP said the Prime Minister should focus on cutting taxes and welfare.
She said: “Labour’s jobs tax and employer red tape have been devastating for businesses.
“The consequence has been a drying-up of the jobs market, weaker investment and businesses facing ever greater costs.
“At the upcoming Budget, Andy Burnham should cut welfare so he can cut taxes for businesses and get our economy growing.
“However, his summer of unfunded spending commitments already announced means he is staring down the barrel of further tax rises, leaving businesses and hardworking families to pick up the bill.”