Does Burnham mean business?

The new Prime Minister’s party conference speech was bold but light on detail, so employers will be watching the upcoming Budget very closely.

Andy Burnham used his speech in Liverpool in September to set out a more interventionist and place-based agenda, with commitments around social care, public services, water, energy, housing and a renewed relationship with Europe. Much of it was framed as a long-term reset rather than an immediate legislative programme. For business, that means the most important signal may not be any single announcement, but the direction of travel. 

Devolution, regeneration and sector confidence

That direction appears to point towards a government that is more comfortable with active industrial policy, local devolution and targeted regulation. Burnham’s emphasis on “prosperity in every postcode” suggests that decisions on housing, transport, high streets and infrastructure could become more closely tied to regional growth plans. If that translates into more coordinated decision-making, it could be positive for developers, investors and operators looking for certainty around placemaking and regeneration. 

Hospitality and consumer-facing businesses will be watching particularly closely. A warmer tone towards pubs, live music venues and high streets may be welcome, but tone will only go so far. The sector will be looking to the Budget for clarity on business rates, VAT, employment costs and any further support for town centre regeneration. For many operators, confidence will depend on whether the Government can combine ambition with practical relief from cost pressures. 

Workforce reform, regulation and Europe

Employers will also be alert to the next phase of employment reform. Labour’s links with the trade union movement are clearly being worn more openly, with the emphasis on greater job security, more scrutiny of zero-hours contracts and a stronger voice for workers. That does not mean every workplace will see immediate change, but businesses that have not engaged with unionisation or collective workforce issues for some time may need to revisit their assumptions. 

On Europe, the Prime Minister’s language was significant but not definitive. A less confrontational relationship with the EU could improve sentiment among some investors and make cross-border trade, movement of people and market access easier over time. However, any meaningful shift would be gradual, politically complex and dependent on the appetite of the EU as well as the UK. Businesses should therefore treat it as a watching brief rather than a near-term change in operating conditions. 

The same is true of regulation more broadly. There were hints of a government that wants smarter regulation rather than simply more regulation, particularly in areas such as consumer protection, subscription practices and customer-facing technology. If that approach is followed through, businesses may see tougher enforcement in some areas alongside efforts to make rules more effective and predictable. 

Stability, certainty and the test ahead

Autumn is an important period. Businesses do not need every answer immediately, but they do need a credible sense of stability. Burnham’s first major speech suggested a clearer political project than the previous regime, but confidence will depend on whether that project is matched by fiscal realism, policy detail and a willingness to give businesses enough certainty to plan. 

So, is a Burnham government going to be good for business? The answer is still uncertain, but if it is, it will be on his own terms. The opportunity for business is to engage early with the themes now emerging, principally devolution, regeneration, workforce reform, consumer confidence and a more constructive European relationship. The risk is assuming that warm words alone will create certainty. The Budget will show whether this government’s first big statement of intent can become a credible plan for growth. 

How Cripps can help

If you would like to discuss any of the issues raised in this article, please contact us.