'Culture shift' needed in how UK does business, PM urges

Prime Minister Keir Burnham urged a “culture shift” in how the United Kingdom supports business, saying the government should back those who take risks and give local leaders the tools to work with companies. Speaking ahead of a high‑profile meeting in Manchester that will bring together CEOs from BP, Shell, HSBC, Morrisons, Sainsbury’s, BT, Vodafone and Rolls‑Royce, Burnham promised that innovators would receive “all the support they need to bring it to life”. He argued that partnership between government and business could attract investment, create jobs and transform communities, positioning the state as a “partner for growth” that makes every part of Britain better off. Burnham cancelled his engagements on Monday and Tuesday after his father’s death, but remained committed to the agenda of confidence‑building for entrepreneurs.

The call for a new approach comes amid criticism that Labour’s policies have raised costs for firms, notably through higher employer National Insurance and minimum‑wage reforms introduced under Burnham’s predecessor, Sir Keir Starmer. Rising borrowing costs have added pressure on public finances as Chancellor John Healey prepares his first budget, while the UK’s 10‑year bond yield remains higher than that of the United States, France and Japan. Analysts attribute the premium to political instability, frequent policy reversals and a perception that the UK is less dynamic than rivals. The meeting also coincides with a petition from more than 800 hospitality owners, including chefs Heston Blumenthal and Tom Kerridge, urging Burnham to cut the sector’s VAT from 20 % to 10 % to align with lower rates in other European countries.

Business leaders offered mixed reactions. Walter Goodwin, chief executive of chip designer Fractile, welcomed the government’s recognition of high‑growth firms as vital to job creation, but warned that the UK must improve talent attraction by shortening notice‑period requirements and making the labour market more fluid. Conservative shadow business secretary Julia Lopez countered that Labour’s “jobs tax and employer red tape” are stifling investment and drying up the jobs market, calling for tax cuts to revive growth. As the UK grapples with higher energy prices, inflationary pressures and a competitive global debt market, the outcome of Burnham’s appeal for a cultural overhaul will shape the nation’s ability to sustain business confidence and economic recovery.

⚡ Effects Interpreter