Burnham not doing enough to boost growth, says former business secretary
Source: BBC Politics ↗
Former Business Secretary Peter Kyle, now a backbench MP for Hove and Portslade, warned that Prime Minister Andy Burnham’s administration is not moving swiftly enough to stimulate economic growth. Speaking to the BBC ahead of Labour’s annual conference in Liverpool, Kyle emphasized that his remarks were not a personal criticism but a call to unlock the country’s growth potential. He argued that if prosperity translates into greater freedom, security and opportunity for families, the government should “put our foot down and get there quicker.” Kyle suggested that achieving this may require short‑term sacrifices, such as delaying the rollout of expanded workers’ rights, and advocated for a “tax growth test” to assess the economic impact of fiscal measures.
Kyle’s comments come amid broader concerns about the UK’s modest outlook. The OECD projects growth of just 1 % for the year, a slight downgrade from the earlier 1.1 % forecast, while Chancellor John Healey faces a first budget on 28 October with rising debt costs and warnings of slower expansion. Kyle urged the government to engage unions on sequencing rights reforms and to identify “obstacles” to growth, noting that parts of the Employment Rights Act passed in December 2025 will not take effect until the following year. He stressed that a more ambitious, urgent approach is needed to translate policy into tangible economic gains across the nation.
Other senior figures defended the pace of change. Culture Secretary Lisa Nandy told BBC Radio 4 that Burnham is moving faster than his predecessor, Keir Starmer, and is “impatient for change,” aiming to deliver the promises made for 2024 more quickly. Labour MP Darren Jones, speaking to the New Statesman, warned against rapid leadership turnover, reminding that governments traditionally endure mid‑term unpopularity when undertaking difficult structural reforms. As the party heads into the conference, backbenchers are urging Burnham and his team to balance swift action with the political realities of implementing long‑term growth strategies.
⚡ Effects Interpreter
🌍World Economylow impact
What this means for you
- ▶Changes at the top might reshape trade deals and diplomatic ties.
- ▶The wider world tends to watch political shifts for early warning signs.
🏙️Local Economylow impact
What this means for you
- ▶Local suppliers who import goods may pass on any change in costs.
- ▶Prices at your local shops may feel a mild, indirect squeeze from this.
🏦Rates & Bankslow impact
What this means for you
- ▶Borrowing costs may hold while the political picture clears.
- ▶The market for money typically twitches first when politics shifts.
❤️Healthlow impact
What this means for you
- ▶Unsettling news can weigh on sleep and mood, so peace of mind matters.
- ▶Local health services might get busier depending on how things develop.
💷Wealthlow impact
What this means for you
- ▶Your pension or investments might sway a touch as markets digest this.
- ▶Long-term savers usually ride out these modest bumps just fine.
🏠Housinglow impact
What this means for you
- ▶Landlords and tenants alike rarely feel sudden shifts from a story like this.
- ▶Mortgage shoppers may find deals shift only slightly in the short term.
🌍 Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone — the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone — the real impact in the UAE depends more on local healthcare capacity than the figures above.