Andy Burnham Urges a Culture Shift in UK Business Backing

PM Andy Burnham has called for a "Culture shift" in the way the UK approaches business, arguing that entrepreneurs, investors and local leaders need stronger support to generate jobs and improve communities.

Business Engagement at Downing Street

The intervention comes before a Monday evening gathering at Number 10 involving leading companies and local representatives.

Push for Partnership

Andy Burnham said people with strong ideas should have confidence that they will receive the help required to turn them into reality. He argued that government and business must work together, while local leaders need the authority to deliver results.

Chief Executives Attending

Downing Street said the PM will meet chief executives from BP, Shell, HSBC, Morrisons, Sainsbury's, BT, Vodafone and Rolls-Royce, alongside several other business leaders. Before the private discussion, Burnham will host a reception for the business community attended by local leaders.

Growth and Local Investment

Burnham said giving local leaders the means to act, combined with cooperation between government and companies, can attract investment, create employment and reshape communities. He said the government would be a growth partner focused on making every part of Britain better off.

Economic Pressures Build

The business meeting is taking place while government finances face increased strain and John Healey prepares his first Budget next month.

Higher Borrowing Costs

Rising borrowing costs in the UK and elsewhere are making it harder for governments seeking to fund business assistance or investment. The UK 10-year bond yield is above those of the US, France and Japan, with investor confidence affected by rapid changes of prime ministers, chancellors and policy reversals.

Energy, AI and Confidence

July brought an unexpected economic lift partly linked to artificial intelligence investment, although experts expect high energy prices to slow growth in the coming months. The US-Israel war with Iran has pushed up oil prices, raising energy and fuel costs. Healey has called for renewed confidence about Britain while recognising historically high borrowing costs.

Business and Sector Responses

Responses highlighted both calls for targeted tax relief and criticism of the Labour government's business-cost measures.

Online Reaction

No specific social-media reaction has been reported in the available information. Publicly stated responses instead centred on hospitality taxation and opposition criticism of business policy.

Views on Policy Direction

The available positions range from the government's partnership agenda to concerns over taxes, regulation and financing conditions.

Support for Local Action

Burnham's approach places emphasis on local decision-making and collaboration with firms as routes to investment, jobs and community change.

Tax and Regulation Criticism

Conservative shadow business secretary Julia Lopez said businesses would prosper through lower taxes. She said Labour's jobs tax and employer red tape had harmed firms, contributing to a weaker jobs market, lower investment and increasing costs.

Hospitality Concerns

More than 800 pub, restaurant and hotel leaders, including Heston Blumenthal and Tom Kerridge, have asked the prime minister to cut hospitality VAT from 20% to 10%. Burnham previously said, while Mayor of Greater Manchester, that he would advocate rates aligned with lower levels in other European countries.

Next Steps Before the Budget

Attention will now turn to the Downing Street discussions and the fiscal decisions due in next month's Budget.

Planned Discussions

Burnham's private meeting with senior executives is scheduled for Monday evening after the reception with business representatives and local leaders. The talks will take place as the government considers how to support growth amid constrained finances.

Key Signals to Monitor

Areas to watch include John Healey's Budget plans, the path of government borrowing costs, energy prices and whether the government responds to the hospitality sector's request for a reduced VAT rate.

Frequently Asked Questions

Here are answers to common questions about Andy Burnham's call for a culture shift in UK business backing.

1. What prompted Andy Burnham's call for a culture shift in UK business backing?

Andy Burnham called for stronger support for entrepreneurs, investors and local leaders ahead of a Downing Street meeting with business executives and local representatives.

2. Why is Andy Burnham's business backing proposal attracting attention?

The proposal comes as the UK faces higher borrowing costs, pressure on public finances, high energy prices and concerns about investment, jobs and business costs.

3. What are the latest updates on the Downing Street business discussions?

Burnham is due to meet chief executives from companies including BP, Shell, HSBC, Morrisons, Sainsbury's, BT, Vodafone and Rolls-Royce after hosting a reception for business representatives and local leaders.

4. What could happen next for UK businesses and local investment?

Attention will focus on the Downing Street discussions and John Healey's Budget next month, including possible decisions affecting growth, business support, taxation and investment.

Based on reporting from the original report.