The real scrutiny of Burnham begins now
Burnham’s honeymood period has been further bolstered by positive economic news. As Parliament returns from recess, now is the time for bold moves, writes Eva Barboni
Andy Burnham’s lucky streak seems to be continuing. After sweeping into Number 10 this summer, he is now heading into the autumn with the economic winds at his back.
Over the last week, a series of positive news stories have started to paint a more optimistic picture of Britain’s economy.
The UK grew faster in the first half of this year than any of our G7 peers, including the US. Consumer confidence hit a two-year high. The services sector recorded its best growth in six months. Manufacturing orders hit their highest level since November 2024. And a new report from the Resolution Foundation shows that productivity may be higher than official data suggests.
Of course, it’s not all rosy. Cost-of-living pressures continue to pinch. Burnham is well aware of that, and he has made it a major focus in the first month of his premiership.
But while his efforts so far have focused primarily on reducing prices, another critical piece of the puzzle remains: improving livelihoods.
To achieve that, he needs to focus on policies that will help create well-paid, resilient jobs across the country. He should look to one area of the economy that is driving job creation more than any other: scale-ups.
The OECD defines scale-ups as companies growing by more than 20 per cent per year in either headcount or revenue over a three-year period, with a minimum of 10 employees at the start of that period. By their very definition, these companies have demonstrated that they know what it takes to deliver growth – despite significant economic headwinds over the last several years.
With the economic winds now changing, backing these companies to scale even more quickly is a no-brainer.
What business wants from Burnham
Over the last several weeks, I’ve had conversations with scale-up founders in our growing community to understand what they want from Burnham. Here’s what they have told me.
First, they want strong signals that Burnham’s economic vision includes a focus on scale-ups. The recent announcement of the £1bn UK Scale-up Fund was a very positive step. Now it’s time to double down. Economic policy often focuses on start-ups on one end and large corporates on the other. But scale-ups are the true drivers of job creation, and their unique needs often get lost in the shuffle. They need policies that will help them hire skilled talent at a speed that matches their growth. And they need access to capital at a level that matches their ambition.
Second, they want stability and certainty. For many businesses, memories of last year’s budget are still front-of-mind. Months of speculation and trial balloons brought economic activity to a standstill. Companies put off investment and hiring decisions because the direction of travel was unclear. And the British public took the hit: the job market slowed, and growth stalled. The Burnham government has clearly studied what went wrong, and their messaging shows that they understand the need for stability. Now they need to demonstrate they will do things differently.
Finally, scale-ups want a vocal ally. Burnham has shown that he is a strong communicator. Now is the moment to use that skill to sell the policies that will help businesses grow. For too long, our political debate has treated economic policy as a zero-sum game, pitting workers’ interests against businesses’ interests. But sustainable economic growth comes from policies that both help businesses thrive and give workers opportunities to advance and succeed in their careers. Burnham may be ideally placed to make this case to the public.
When Parliament returns from recess next week, the real scrutiny of Burnham will begin.
But there’s a final piece of data working in his favour: his net favourability ratings are the highest of any British Prime Minister in more than six years. He should make the most of this honeymoon period to deliver policies that will put Britain on a path towards shared prosperity for years to come.
Eva Barboni is the executive director of Enterprise Britain, a movement of entrepreneurs, business leaders and investors