UK needs business culture shift, Andy Burnham says ahead of Downing Street meeting
Prime minister to meet chief executives of major British companies including BP, Shell and HSBC ahead of the budget.
Quick Look
- Andy Burnham has called for a business culture shift ahead of a meeting with major UK corporate chief executives at Downing Street.
- The gathering precedes Chancellor John Healey's upcoming budget amid pressure over rising borrowing costs and hospitality sector demands for VAT cuts.
AI-generated summary
Why It Matters
Chancellor John Healey is preparing for his first Budget next month amid rising borrowing costs.
The UK needs a "culture shift" in how it does business, Andy Burnham has said ahead of a meeting with some of Britain's biggest bosses.
The prime minister said those who take risks in business should be backed by government and local leaders should have the power to work with companies.
The Labour government has been criticised for increasing costs for firms, such as with the employer national insurance and minimum wage changes under Burnham's predecessor Sir Keir Starmer.
The meeting comes as Chancellor John Healey prepares for his first Budget next month, with rising borrowing costs in recent weeks adding to the pressure on government finances.
Downing Street said Burnham will meet the chief executives of BP, Shell, HSBC, Morrisons, Sainsbury's, BT, Vodafone, Rolls-Royce and several others at Number 10.
Ahead of the meeting, Burnham said he would give people "the confidence that if they have a great idea, they'll get all the support they need to bring it to life".
"When local leaders have the tools to get things done and government works in partnership with business, you can pull in investment, create jobs and transform communities," he said.
He added the government would be "a partner for growth to make every part of Britain better off".
Burnham will host a reception for the business community where local leaders are invited before a private engagement with senior chief executives at Downing Street on Monday evening.
The meeting comes as higher borrowing costs in the UK and other countries present problems for governments looking to spend money on business support or investment.
Separately, hundreds of hospitality businesses have written to the prime minister, calling on him to cut VAT for the sector.
More than 800 pub, restaurant and hotel bosses - include celebrity chefs Heston Blumenthal and Tom Kerridge - signed the letter asking for the hospitality VAT rate to be reduced from 20% to 10%.
When he was still Mayor of Greater Manchester, Burnham said he would argue for the tax to be in line with the lower rates seen in other European countries.
What to Watch
AI outlook — possibilities, not facts
Chancellor John Healey will deliver his first Budget next month.
Very likely · Within weeks
Open Questions
- What specific policy changes will emerge from the Downing Street business meeting?
- Will the government reduce VAT for the hospitality sector?
