Prime Minister Andy Burnham said the United Kingdom needs a “culture shift” in how it does business, urging the government to back risk‑taking firms and give local leaders the tools to partner with companies. The comments came ahead of a meeting on Monday that will bring together heads of major UK firms such as BP, Shell, HSBC, Morrisons, Sainsbury’s, BT, Vodafone and Rolls‑Royce.
Burnham, who had to cancel his Monday and Tuesday engagements after his father’s death, said the government would be a partner for growth, giving confidence that great ideas can be realised with the right support. He added that “when local leaders have the tools to get things done and government works in partnership with business, you can pull in investment, create jobs and transform communities.”
The meeting comes as Chancellor John Healey prepares for his first Budget next month, with rising borrowing costs adding pressure to government finances. The Labour government has faced criticism for increasing costs for firms, including employer national insurance and minimum wage changes under former Prime Minister Sir Keir Starmer.
Separately, hundreds of hospitality businesses, including celebrity chefs Heston Blumenthal and Tom Kerridge, have written to the Prime Minister asking for the sector’s VAT rate to be cut from 20 % to 10 %. Burnham, who was once Mayor of Greater Manchester, has long argued for aligning the hospitality tax with lower European rates.
Economic data showed a surprise boost in July, partly driven by artificial intelligence investment, but analysts warn growth may slow as energy prices remain high and interest rates could rise to curb inflation. The UK’s 10‑year bond yield remains higher than that of the US, France and Japan, reflecting investor concerns over policy volatility.
Walter Goodwin, CEO of chip designer Fractile, said the government’s recognition of high‑growth businesses as crucial to job creation was “a positive thing,” but added that the UK could do better at attracting top talent, noting the current system is “less dynamic” than other countries.
Conservative shadow business secretary Julia Lopez criticised Labour’s tax and red‑tape policies as stifling jobs and investment. The Prime Minister’s call for a culture shift comes as the UK faces higher borrowing costs and a need to restore confidence in Britain’s business environment.
