'Culture shift' needed in how UK does business, PM urges
Source: BBC Politics ↗
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
🌍World Economylow impact
What this means for you
- ▶Trade and investment between countries could shift a touch if things escalate.
- ▶The ripples can spread across borders, nudging growth forecasts here and there.
🏙️Local Economylow impact
What this means for you
- ▶Hiring confidence nearby tends to move a step behind the headlines.
- ▶Workers in this field might face changes to pay, hours or job security.
🏦Rates & Bankslow impact
What this means for you
- ▶Savers might glance at their account rate — lenders adjust after big events.
- ▶A modest drift in borrowing costs is more plausible than a sharp jump.
❤️Healthmedium impact
What this means for you
- ▶Sleep and appetite can be the first quiet casualties of unsettling news.
- ▶Keeping a normal routine often helps steady the nerves during unsettling news.
💷Wealthmedium impact
What this means for you
- ▶Pension contributions can take a knock when work is uncertain.
- ▶Checking eligibility for support schemes early can save stress later.
🏠Housingmedium impact
What this means for you
- ▶Housing chains involving multiple buyers can be sensitive to any wider wobble.
- ▶A cooling or warming market usually takes months to fully show up in prices.
🌍 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.