Burnham puts local growth at centre of leadership bid

Burnham win puts hospitality VAT and rates pledges in spotlight
PM pitch: Burnham puts local growth at centre of leadership bid (Andy Burnham via @MayorofGM on X)

Andy Burnham has set out plans for a more devolved, business-focused economy.

In his first major policy speech since launching his bid to become Prime Minister, Burnham said the Westminster system was “broken” and called for more decision-making to be pushed to regions and local communities.

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The former Greater Manchester mayor said he wanted to create a “No 10 North” in Manchester, which he described as the “nerve centre of a rewired Britain”.

Burnham said the approach would support a 10-year mission to raise living standards and deliver “good growth in every postcode”.

The plans are expected to give mayors greater control over areas including housing, welfare and post-16 education, with more power over budgets currently controlled by Whitehall.

The speech comes as mayors are already gaining greater influence over hospitality policy, with London Mayor Sadiq Khan today (29 June) announcing new strategic licensing powers and relaunching the Summer Streets fund to support outdoor dining, events and extended trading.

Local growth

While Burnham did not set out detailed hospitality measures in the speech, his focus on local growth, high streets, youth skills and devolution is likely to be watched closely by pub, bar and late-night operators.

Hospitality businesses have repeatedly called for greater support for high streets, action on business rates and policies that help venues recruit and train staff.

Burnham said the country needed a “complete rethink” in support for the next generation, with a stronger focus on technical education and routes outside university.

He said young people should have “a clear path into a reindustrialised Britain” and pledged increased workplace mental health support to help young people remain in employment.

The sector has long positioned itself as a major employer of young people, offering first jobs, training and career progression across pubs, bars, restaurants and hotels. However, operators have also warned rising employment costs are putting pressure on recruitment and staffing budgets.

Burnham also said his programme would focus on moving power away from Whitehall and towards local leaders, arguing regional decision-making was needed to drive growth across the country.

He said the days of Whitehall “fighting the devolution of power into the regions and nations” were over.

The speech comes as Burnham is widely expected to succeed Sir Keir Starmer as Prime Minister if no other Labour MP enters the leadership contest.

Night-time economy response

The Night Time Industries Association (NTIA) welcomed Burnham’s speech and said his approach reflected a consistent focus on business, local leadership and the pressures facing the night-time economy.

NTIA chief executive Michael Kill said Burnham’s belief in giving greater powers to local leaders with “real accountability” was an approach the organisation had long supported.

“Those closest to the challenges facing towns and cities are often best placed to deliver meaningful solutions.”

Kill said businesses across the night-time economy were continuing to deal with rising costs, regulatory pressures and fragile consumer confidence.

“What gives our sector confidence is the consistency of that narrative. Throughout our engagement, Andy has remained focused on recognising the value of business, empowering local leadership and understanding the pressures facing industries like the night-time economy.”

Kill said the NTIA wanted to continue working with the Government to ensure the night-time economy was recognised “not simply as a sector to protect, but as a key driver of growth, jobs, investment and vibrant communities”.

Miles Beale, CEO of the Wine and Sprit Trade Association, added: “The WSTA welcomes Andy Burnham’s commitment, if elected as Labour leader, to reform business rates. The most recent reforms have hit the whole of the hospitality sector and the supply chain hard as well as other high street businesses. ity’s clearly time for a re-think.”

Burnham’s speech comes after he previously pledged to cut business rates for pubs, clubs and music venues by 20% if he became Prime Minister.

He has also said he would raise the rates-free threshold from £12,000 to £18,000 and extend the tapered relief threshold from £15,000 to £21,000.

Burnham has also backed calls for hospitality VAT to be cut from 20% to 10%, in line with the #VATsTheProblem campaign.