The prime minister is to host business leaders, entrepreneurs and local mayors at Downing Street on Monday to pitch his government as a “partner for growth” that can offer a stable platform for investment and jobs in the UK.
Ahead of the event, Andy Burnham said the country had “everything it needs to succeed”, including talented people and world-class universities, but requires “a culture shift in how Britain does business” if it is to unlock its full potential.
The new prime minister vowed to “reindustrialise Britain” through a new partnership with business. “That means putting government firmly on the side of the people who take risks, start companies, create jobs and bring new ideas to life,” he said.
“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.”
Burnham will host a roundtable with entrepreneurs – including the founders of Octopus Energy, Revolut and Starling Bank and quantum computing companies including Oxford Quantum Circuits – before welcoming chief executives from some of Britain’s largest businesses for a reception in No 10 along with regional mayors.
They include the bosses of financial companies HSBC, Aviva and Standard Chartered, supermarkets Morrisons and Sainsbury’s, telecoms groups BT and Vodafone, oil companies BP and Shell and manufacturers Rolls-Royce and BAE Systems.
Monday’s round of meetings come as Burnham and John Healey, the chancellor, prepare for their first budget on 28 October.
Burnham has vowed to deliver growth across the country and to devolve power and resources away from Westminster to do so. But Healey faces a tough task, presenting his budget amid rising borrowing costs and the impact of the Iran war on the global economy.
Although the economy unexpectedly grew by 0.4% in July, boosted by AI and cloud computing, economists have warned rising energy costs may have held back growth in August and September.
Suren Thiru, chief economist for the Institute of Chartered Accountants England and Wales, said the chancellor 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 Burnham and 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 taxes and government debt to fall as a share of the economy by 2029/30. They are also bound by Labour’s manifesto commitment not to raise income tax, national insurance or VAT.
In his first major speech as chancellor last week, Healey said boosting economic growth would be his defining mission as chancellor but also warned Labour had to “be honest” about the need to control public spending at next month’s budget.
He talked of putting more power and resources into the hands of local leaders, reducing the cost of doing business and using public investment to attract private capital.
