Britain needs a “cultural shift” in the way it does business, Andy Burnham has said ahead of a meeting with some of Britain’s biggest bosses.
The Prime Minister said those taking risks in business should have government support and local leaders should be empowered to work with businesses.
The current Labor government has been criticized for increasing costs for business, such as employers’ national insurance and changes to the minimum wage under Burnham’s predecessor Sir Keir Starmer.
Downing Street said Burnham would meet the heads of BP, Shell, HSBC, Morrisons, Sainsbury’s, BT, Vodafone, Rolls-Royce and several others in Number 10.
Ahead of the meeting, Burnham said he would give people “confidence that if they have a great idea, they will get all the support they need to make it happen.”
“When local leaders have the tools to get things done, and government works in partnership with business, you can attract investment, create jobs and transform communities,” he said.
He added that the government would be a “partner in economic growth to improve the well-being of every part of Britain.”
Burnham will host a reception for the business community, to which local leaders will be invited, ahead of a private meeting with senior executives in Downing Street on Monday evening.
The meeting comes as higher borrowing costs in the UK and elsewhere pose challenges for governments looking to spend money on business support or investment.
Official data showed unexpected economic growth in July, driven in part by investment in artificial intelligence (AI), although experts expect growth to slow in coming months due to high energy prices.
The US and Israeli war with Iran has led to a sharp rise in oil prices, causing energy and fuel prices to rise, affecting households and businesses.
This rise in energy prices has led to fears that inflation will remain high and will increase the likelihood that central banks will raise interest rates to keep rising prices under control.
Expectations of higher interest rates, as well as competition for debt from artificial intelligence companies looking to spend money on development, have driven up government borrowing costs in many countries.
However, many argue that the UK has a particular problem with high public debt. The UK’s 10-year yield, a key measure of the cost of government debt, is higher than in countries such as the US, France and Japan.
Experts say this is due to several factors affecting investor confidence in the UK, such as multiple prime ministers, chancellors and policy reversals in a short period.
In an interview with the BBC last week, Chancellor John Healey called for restoring “confidence in Britain” despite acknowledging the problem of “historically high” borrowing costs.
Others argue that the Labor government has created problems for itself by increasing costs for businesses.
Conservative shadow business minister Julia Lopez said: “The way for the Prime Minister to ensure businesses prosper, create jobs and stimulate economic growth is to cut taxes.
“The labor tax and employer red tape have had a devastating impact on business. The consequence of this was a drying up of the labor market, a decrease in investment and increased costs for enterprises.”