Kyle says Burnham must act faster on economic growth

Former Business Secretary Peter Kyle has said Prime Minister Andy Burnham’s government needs to act with greater urgency to boost economic growth. Kyle, who was removed from Burnham’s cabinet two months ago, said his comments were about the country’s economic potential rather than a criticism of the government.

Former Minister Calls for Action

Speaking to the BBC, Kyle said the government should be prepared to make difficult decisions in the short term if they could help deliver stronger economic growth. He argued that greater prosperity would provide people and families with more opportunities and security.

Workers’ Rights Debate

Kyle suggested the government could consider delaying some planned workers’ rights measures to prioritise economic growth. He said ministers should have “honest conversations” with trade unions about how employment rights are introduced.

Employment Rights Act Passed

The Employment Rights Act was passed in December 2025, although some of its measures are not scheduled to take effect until next year. Kyle’s comments come as Labour prepares for its annual conference in Liverpool.

Burnham Promotes Devolution

Burnham has previously said his experience as Greater Manchester mayor gave him a “clear theory of growth”. His approach has focused on giving local areas greater control over economic decisions, which he argues could create the conditions for stronger growth across the country.

Kyle Suggests Tax Growth Test

The former minister also proposed introducing a “tax growth test” to assess how individual taxes affect the economy. He said government experts should also examine barriers that could be preventing businesses and the wider economy from expanding.

Government Faces Economic Pressure

Kyle’s comments come ahead of Chancellor John Healey’s first Budget on October 28. The government is facing higher borrowing costs and concerns over the pace of economic growth. The OECD has forecast UK growth of 1% this year, slightly below its previous 1.1% projection.

Nandy Defends Government

Culture Secretary Lisa Nandy defended the government’s approach, saying the prime minister was moving faster than his predecessor. She said the change in leadership earlier this year reflected a desire for people to see improvements in their lives more quickly.

Burnham Promises Major Change

Nandy also described Burnham as impatient for change and said he had ambitious plans for the country. Burnham is expected to address Labour’s annual conference on Tuesday and has said his speech will clearly outline what he is seeking to achieve in his new role.

Labour Faces Growth Challenge

The government’s economic strategy remains under pressure as ministers attempt to balance growth with public spending, workers’ rights and fiscal constraints. Recent government borrowing figures have also highlighted the difficult financial backdrop ahead of the October Budget.

Labour MPs Urge Patience

Former chief secretary Darren Jones, a Starmer ally, has argued that governments sometimes need time to implement difficult structural reforms. He said Labour MPs have a collective responsibility to help Burnham and his team deliver the government’s programme.

Conference Puts Growth in Focus

The Labour conference is expected to provide a major platform for Burnham to outline his economic priorities. Kyle’s intervention adds to the debate within Labour over how quickly the government should pursue measures designed to increase economic growth.