'Big ideas but time for action': Business reacts to Burnham growth plan

Andy Burnham has pledged to transform Britain by giving regions greater devolution powers across utilities, transport and housing.

The prospective prime minister says he will set a “new direction” for the UK, with a Manchester-based 10 Downing Street outpost earmarked to deliver the “biggest rebalancing of power the country has seen”.

Business leaders widely welcomed the blueprint, but urged the former Manchester mayor to deliver more details and prove he is “serious about putting business first”.

Political opponents criticised the plans, with Green Party leader Zac Polanski claiming the moves will mean “continued austerity and cuts to vital services”, and SNP and Plaid Cymru leaders arguing the proposals will provide nothing for Scotland and Wales.

According to the recently-elected Makerfield MP's plans, the Manchester-based 10 Downing Street venture would redistribute power and resources across the UK, overseeing the “biggest council house building programme since the post-war period”, with greater devolution also allowing regions to take “greater public control of essential services” including water, energy and transport.

He said: “The days of Whitehall fighting the devolution of power into the regions and nations are over for good.”

He also promised to support reindustrialisation across the UK’s regions, saying Whitehall would be ordered to back British firms bidding for public contracts – even if it cost taxpayers more.

He said: “For too long, UK public procurement policy has been based on chasing cut-price deals around the world, rather than helping our own British-based suppliers become more stable and competitive.”

He vowed not to hike borrowing and taxes, saying the blueprint would be based on “the stability that comes from sound public finances”.

However, he said taxpayer support would be needed to deal with the cost-of-living pressures facing households.

He added: “Ours is a ten-year mission to raise people’s living standards; I know people can’t wait forever for change.

“I will do my very best to deliver it, and while not taking risks with the public finances, will seek to give Britain some breathing space.

“People need hope.”

Reacting to the plans, Andreas Adamides, chief executive of scale-up entrepreneur network Helm, said: “The rhetoric on business is encouraging, and reforming business rates would be a vital step towards backing local firms and entrepreneurs.

“But warm words are not enough; we need to see whether the policies match the promises, and whether he is serious about putting business first.”

Mr Burnham’s speech was “empty on fiscal detail, but full of big ideas”, according to Sean Drury, head of tax at business advisory firm Blick Rothenberg.

He added: “The overall tone was setting an optimistic vision of the future, and this will hopefully continue, rather than the constant pessimism about the legacy that has been left behind.

“There were a few statements made which would impact on the tax agenda, for instance a reform of business rates, but this was mainly a speech about big political and social ideas.”

Chris Fletcher, chief executive at Teesside-based commerce agency Visualsoft, welcomed the commitment around further devolution powers for a region that has operated with a mayoral-based combined authority for nearly a decade.

He said: “Andy Burnham is right to argue that regions should have a greater say in their own economic future.

“The North East has everything it takes to become one of the UK’s leading tech hubs, and businesses like ours will always benefit when decisions are made closer to the communities and employers they affect.”

Rain Newton-Smith, Confederation of British Industry chief executive, said businesses could get behind Mr Burnham if he followed the “positive, dynamic and collaborative approach that has helped public and private sectors drive growth in Manchester” at a national level.

However, she warned “proposals for greater intervention in markets such as transport and utilities must avoid deterring investment”.

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