London business chiefs have issued a warning to Andy Burnham and other potential Labour leadership contenders not to “take London for granted.”
BusinessLDN's Warning
Muniya Barua, deputy chief executive of BusinessLDN, stressed that the window to boost economic growth in Britain before the next general election, expected in 2029, is “closing fast.” She spoke out as political parties ramped up campaigning ahead of the Makerfield by-election on Thursday.
Burnham's Ambitions
Greater Manchester Mayor Andy Burnham is seeking to win the contest, widely seen as a two-horse race against Nigel Farage’s Reform UK, to return to Parliament. If successful, the former Labour Cabinet minister is expected to launch a leadership bid to replace Sir Keir Starmer, with growing speculation this could happen quickly. Ilford North MP Wes Streeting, who recently resigned as Health Secretary with stinging criticism of Sir Keir’s government, may also enter a leadership contest.
London's Political Landscape
Amid political turmoil, Ms Barua was due to tell BusinessLDN’s Future London conference in the City that local election results, where Labour suffered heavy losses in the capital, meant political parties must now do more to win over Londoners. “For too long, the main political parties have taken London for granted,” she was set to say. “In part, this was because the city was seen as politically settled: Labour dominating in recent times, with the Conservatives and Lib Dems performing strongly in parts of the city but unlikely to make major inroads. None of the major parties were incentivised to focus on London. Last month’s results change that: London is now back in play.”
Reform UK made sweeping gains across England in the May elections, but Zack Polanski’s Green Party made far bigger inroads into Labour strongholds in London, winning control of several councils.
Makerfield By-Election Dynamics
Mr Burnham is favourite to beat Reform’s Robert Kenyon, according to polls, despite Labour’s national unpopularity and strong support for Mr Farage’s party in Makerfield at the local elections. Rob Ford, Professor of Political Science at Manchester University, explained: “Andy Burnham is a very popular local Labour politician running for Westminster in order, everyone expects, to challenge the very unpopular Labour Prime Minister who has presided over his party’s polling collapse. It seems a reasonable theory that Burnham will run ahead of his party, either because voters like him personally, or because they see him as the best option to ‘get Starmer out.’”
Sir Keir has vowed to fight any attempts to topple him, but there is a growing expectation at Westminster that Mr Burnham could soon be Prime Minister. He has faced accusations of being anti-London as he has championed the North West and other regions.
Economic Growth Imperative
If he gains the keys to No10, Mr Burnham is expected to step up measures to boost regional economic growth. But Ms Barua urged political parties to do more to unlock London’s full potential. “Politicians should be in no doubt that the window of opportunity to boost growth in this Parliament is closing fast,” she was due to say, addressing some 250 senior business and political leaders. “Whatever the outcome of any leadership contest, it’s vital that the Labour Party swiftly puts party politics aside and that the Government doubles down on its central mission, delivering growth.”
The Standard has revealed how deteriorating mobile phone signal in London is worse than in Manchester and Leeds, and how the number of young people in the capital without a job has soared. BusinessLDN stressed that the housing crisis, rising rents, youth unemployment, and failure to deliver major infrastructure projects are key barriers holding back London’s economy. The business group also emphasised that the capital accounts for almost a quarter of the UK economy, making a net fiscal contribution of over £40 billion a year to Treasury coffers.
