Burnham promises to curb non-compete rules in job contracts
Prime Minister Keir Burnham announced at a Manchester business summit that his government will move to curb the use of non‑compete clauses in employment contracts, which he said have “gone too far” and are stifling innovation across the UK. He warned that such clauses force workers to leave jobs without pay and deter growing firms from hiring, noting that research estimates roughly five million British jobs are subject to these restrictions, typically for about six months. Burnham pledged new legislation to ensure non‑competes “can no longer be a barrier” to recruitment, positioning the reform as a key step toward revitalising the country’s innovative sectors ahead of the upcoming Budget.
The push to restrict non‑competes follows a government review that began late last year, exploring options ranging from a total ban to limits based on salary levels or duration. While the clauses are most common in finance and technology, the review highlighted their broader impact on the “everyday economy,” affecting start‑ups and scaling firms that struggle to attract talent. Burnham likened the potential reform to the 1995 Bosman ruling that transformed European football transfers, suggesting that reining in non‑competes could similarly unleash creativity and entrepreneurship. He did not disclose the precise parameters of the forthcoming rules but indicated they would target both high‑growth companies and ordinary businesses.
The announcement was framed as part of a wider strategy to keep high‑growth firms and their associated jobs, technology and investment within the UK. Burnham signalled that the Budget will include further measures, including public‑investment funds modeled on Greater Manchester’s Good Growth Fund and tax reforms aimed at retaining promising companies. The government hopes these combined efforts will break the “ceiling” that drives innovative ideas abroad, fostering a new era of industrialisation and regional development across the country.
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