Andy Burnham sets out new business offer for UK firms
In a 24 July statement on gov.uk, Prime Minister Andy Burnham used his first calls with major business groups to offer a reset in the relationship between Whitehall and employers. The pitch was simple enough: more certainty, quicker decisions and a stronger business voice in policy after years in which many firms felt talked at rather than listened to. The calls brought in the CBI, British Chambers of Commerce, Federation of Small Businesses, Make UK, Small Business Britain and Startup Coalition, among others. Taken together, those organisations cover a broad stretch of the economy, from exporters and manufacturers to start-ups, family firms and high street operators.
For businesses, the appeal of that message is obvious. Costs have risen, confidence has been uneven and investment decisions are harder to sign off when policy arrives late or changes course too easily. Burnham is trying to present his government as a break from that pattern, with a promise to make the state easier to deal with and more predictable over the long term. The government is also leaning on an early signal for town centres. In his first week in office, Burnham announced 20 per cent relief for pubs, clubs and music venues, which ministers say will cut costs for businesses that still act as anchors for local spending, footfall and evening trade.
That matters because smaller venues and independent operators usually feel rate bills and energy costs first. A 20 per cent reduction will not repair every balance sheet, but it can make a real difference for firms running on narrow margins and limited cash reserves. It also gives substance to Burnham’s broader promise to reform business rates, although the real test for business will be the detail, the timetable and who actually qualifies. There is a wider economic point here as well. High streets do not only reflect consumer demand; they reflect whether local employers can absorb rising fixed costs and still keep people in work. When shops shut or venues trim opening hours, the effect quickly spreads to suppliers, staff and the pool of first-job opportunities in a town.
Burnham’s other big claim is that more decisions should be taken closer to communities, investors and employers. According to the government statement, over-centralised decision-making has slowed regeneration and held back private capital. For regional businesses, especially outside London and the South East, that argument will sound familiar. Projects often stall not because demand is missing, but because approvals move too slowly and responsibility sits in too many places at once. If ministers can shift power out of Whitehall without creating another layer of process, that could help with planning, local infrastructure and investment timelines. But firms have heard versions of this before. The gain will only feel real when businesses can point to a shorter route from proposal to decision.
The offer to business is not just about removing friction. Burnham also said the government will step in more actively when markets and regulators are not delivering for working people, naming energy and water as examples. That creates an interesting balance: ministers want to sound more interventionist where households are getting poor value, while also asking companies to back investment, hiring and local growth. For many employers, that is a fair bargain in principle. Most firms can work with tighter oversight if the rules are clear and the process is consistent. What tends to undermine confidence is uncertainty, especially when employment policy, regulation and business taxation all appear to move at once. That is why the promise of clearer direction may matter more than the tone of the announcement.
One of the sharper parts of the statement was youth unemployment. Burnham is asking employers to help rebuild the entry route into work, arguing that too many young people leave school unready for the workplace and that skills shortages are making recruitment harder. For SMEs, this is not an abstract social concern. It shows up in unfilled vacancies, higher training costs and weaker local spending power. There is a straightforward business case for getting this right. A stronger flow into apprenticeships, junior roles and workplace training gives firms a better chance of growing without relying on a narrow pool of experienced hires. But employers cannot solve that alone. Schools, colleges, local leaders and central government will all need to move in step if this part of the agenda is going to hold.
The international backdrop makes the timing more urgent. The same gov.uk release said a new round of US tariffs was announced on 24 July, but that the UK’s Economic Prosperity Deal remains in place, with zero tariffs on whisky and medical technology. For exporters in those sectors, that is a useful piece of certainty at a moment when trade conditions are becoming less predictable. Ministers are also tying this agenda to workers’ rights reform, deeper trade links and a bigger use of public procurement to support domestic jobs, apprenticeships and innovation. Notes to editors on gov.uk said more than 200 business leaders and senior figures from business, science and technology had also been engaged this week, alongside the launch of the new Department for Business, Innovation, Science and Trade. The message from government is that it wants to move faster and sound more joined up. The verdict from business will rest on something simpler: lower costs that can be felt on the high street, quicker decisions that unlock investment and a labour market plan that gives young people a genuine route into work.