Andy Burnham will call for a "culture shift" as he brings together business leaders at Downing Street on Monday to pledge support for entrepreneurs. The Prime Minister is expected to host a series of events at No 10 aimed at positioning his Government as a "partner for growth" that can provide a stable foundation for investment in the UK.
Britain has 'everything it needs to succeed'
Ahead of the gathering, Mr Burnham said Britain has "everything it needs to succeed" but requires "a culture shift" in how it conducts business if it is to "unlock its full potential".
He added: "That means putting Government firmly on the side of the people who take risks, start companies, create jobs and bring new ideas to life."
"It means ensuring ambition is rewarded, making it easier to start and grow a business, and giving people the confidence that if they have a great idea, they'll get all the support they need to bring it to life."
Roundtable with founders and chief executives
Monday will see Mr Burnham chair a roundtable with entrepreneurs including the founders of Octopus Energy, Revolut and Starling Bank, before welcoming chief executives from some of Britain's biggest companies to a reception at No 10 alongside regional mayors.
Those expected to attend include the bosses of HSBC, Rolls-Royce, Morrisons, BAE and Shell.
Budget backdrop and fiscal rules
Monday's round of meetings comes as Mr Burnham and Chancellor John Healey weigh up options ahead of their first Budget on October 28. The Prime Minister has pledged to deliver growth throughout the country, devolving power and resources away from Westminster in order to achieve this.
Yet Mr Healey faces a challenging backdrop, delivering his Budget against a climate of rising borrowing costs, stubbornly low growth and the economic fallout from the Iran war on the global economy. Despite receiving some welcome news last week when official figures revealed an unexpected upturn in economic growth in July, economists have cautioned that rising energy costs could have dampened momentum in August and September.
Suren Thiru, chief economist for the Institute of Chartered Accountants England and Wales, warned that Mr Healey could be left with a "Budget headache" if economic growth begins to falter, "as more muted growth and surging borrowing costs erode his fiscal headroom, raising the prospect of further tax rises".
Both Mr Burnham and Mr Healey have underlined their commitment to the fiscal rules established by former chancellor Rachel Reeves, which stipulate that day-to-day spending must be covered by taxation and overall government debt must fall as a proportion of the economy by 2029/30. They also remain bound by Labour's manifesto pledge not to increase income tax, national insurance or VAT.
