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Andy Burnham has called for a fundamental change in the UK’s business culture as he prepares to meet with some of the largest corporate leaders in the country. Emphasizing the need for government backing of those who take risks in business, Burnham argued that local leaders should be empowered to collaborate directly with companies. This aligns with a broader government approach aimed at fostering partnership between public authorities and the business community to drive investment, create jobs, and revitalize local areas.
The upcoming meeting at Downing Street will include executives from major firms such as BP, Shell, HSBC, Morrisons, Sainsbury’s, BT, Vodafone, and Rolls-Royce, among others. Ahead of the gathering, Burnham expressed his intention to encourage confidence among innovators by ensuring they receive robust support for bringing their ideas to fruition. He highlighted the importance of equipping local leaders with the necessary tools to facilitate progress and reiterated the government’s commitment to being “a partner for growth to make every part of Britain better off.” The event will also involve a reception for the business community where local leaders are invited, followed by a closed-door session with senior chief executives.
This business-focused engagement takes place against a backdrop of rising borrowing costs that are putting pressure on government spending and investment plans. Chancellor John Healey is preparing to deliver his first Budget next month amid these financial challenges. Meanwhile, the hospitality sector is pressing for relief, with over 800 pub, restaurant, and hotel owners—including renowned chefs Heston Blumenthal and Tom Kerridge—signing an open letter urging the prime minister to reduce the VAT rate from 20% to 10%. Burnham, who once advocated for VAT alignment with lower European rates during his time as Mayor of Greater Manchester, remains supportive of the move.
Economic data has shown a surprising uptick in the UK economy, partly fueled by investment in artificial intelligence (AI), though experts caution growth may slow due to persistently high energy prices. The conflict involving the US, Israel, and Iran has driven up oil prices, leading to increased costs for households and businesses alike. Rising energy expenses have raised concerns about ongoing inflation and the likelihood of further interest rate hikes by central banks to manage price growth. UK government borrowing costs have surged, with 10-year bond yields outpacing those of several major economies including the US, France, and Japan. Analysts attribute this partly to diminished investor confidence amid frequent leadership changes and policy reversals.
Walter Goodwin, CEO of chip design firm Fractile and a participant in Monday’s meeting, praised the government’s recognition of the importance of high-growth businesses in job creation and economic development as “a positive thing.” However, he suggested to the BBC that the UK’s system for attracting top talent is “less dynamic” compared to other nations and could be improved by shortening lengthy notice periods for job transitions. Meanwhile, Chancellor Healey has stressed the need to “restore confidence about Britain” despite grappling with historic borrowing costs. In contrast, Conservative shadow business secretary Julia Lopez criticized the government for imposing extra financial burdens on businesses through increased taxes and regulations, contending these measures have led to a decline in job availability, weaker investment, and higher operational costs for companies
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