Burnham not doing enough to boost growth, says Starmer ally

Burnham not doing enough to boost growth, says Starmer ally

A former cabinet minister from Sir Keir Starmer’s administration has voiced concerns over the pace at which Andy Burnham’s government is promoting economic growth, urging for greater urgency in their approach. Peter Kyle, who was dismissed from Burnham’s cabinet reshuffle shortly after the new government took office, clarified that his remarks were not meant as a “criticism” but rather as an observation of the nation’s untapped potential.

Kyle emphasized the importance of setting ambitious goals for prosperity, noting, “If the destination means prosperity, it means freedom for people to do new things, and it means security for people and families, then why wouldn’t we put our foot down and get there quicker.” His comments come as Labour prepares to convene at its annual conference in Liverpool, where Burnham will deliver a keynote speech meant to clearly outline his objectives in office.

As mayor of Greater Manchester, Burnham has expressed a “clear theory of growth,” which centers on devolving more powers to local regions and nations to foster economic development in every area. Meanwhile, Kyle, now serving as the backbench MP for Hove and Portslade after having held science and business secretary roles, suggested that the government might need to endure “short-term” difficulties, such as delaying the expansion of workers’ rights, to spark quicker economic growth. He advocated for honest discussions with unions on sequencing workers’ rights to prioritize economic gains in the near term.

Kyle also proposed the introduction of a “tax growth test,” which would evaluate how each tax affects the economy, along with a government-led review of barriers to growth by experts. When asked about the current emphasis on growth within the government, he responded, “I don’t think there is and that isn’t a criticism – it is pointing to the potential that we have as a country and as a government. I think we need to up our ambition, I think that we need to act with more urgency when it comes to economic growth.” Facing challenges such as rising debt costs and a projected slowdown in economic expansion—currently forecast by the OECD to be 1%—Chancellor John Healey is expected to present his first Budget on 28 October

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