Hundreds of business leaders and lobbyists gathered in Liverpool on Monday for the Labour Party’s annual conference, marking a crucial moment for the party’s relationship with the business community and the broader economy. This year’s business day, the third under Labour and the first since Andy Burnham became prime minister, took place amid significant economic challenges including rising inflation, elevated energy prices, and increasing government borrowing costs driven by global bond market volatility.

The event was seen by many attendees as an opportunity for Burnham’s government to rebuild trust with businesses facing rising costs and tax pressures ahead of the upcoming budget scheduled for October 28. Concerns have grown recently over potential increases in capital gains tax and ongoing fiscal tightening, further complicating the economic environment for companies and investors.

Burnham’s business day agenda reflected his administration’s focus on localism and devolution. It began with a networking breakfast hosted by Business and Trade Secretary Jonathan Reynolds, followed by a conversation between Burnham and Bloomberg’s European director Con Cotzias. The morning featured policy roundtables before high-profile speeches from Reynolds and Chancellor John Healey. The afternoon sessions included panels on digital innovation’s role in regional growth, as well as networking with local mayors. Evening receptions were co-hosted by Bloomberg and the Confederation of British Industry (CBI). Sponsors included HSBC, Mastercard, UK Private Capital, fintech firm Intuit, and Heathrow Reimagined, an industry coalition advocating regulatory changes at London’s Heathrow Airport.

Despite the full agenda, some in the business community remain cautious. Mark Glover, chairman of SEC Newgate UK and vice-chairman of Labour Business, highlighted a demand for substantive engagement rather than symbolic meetings. He noted that under Burnham’s leadership, business officials are still adjusting to new faces and assessing whether they find ministers approachable and credible interlocutors.

The reshuffle earlier this year, which ended the ministerial careers of several individuals with strong business backgrounds, such as Lord Vallance of Balham and Lord Stockwood, has left a perceived experience gap in government ranks. This has sparked skepticism among influential voices like Andy Haldane, president of the British Chambers of Commerce, and Lord O’Neill of Gatley, a former Goldman Sachs economist. Both have questioned Burnham’s economic strategy and have declined formal advisory roles, signaling doubts over the administration’s approach to growth and tax policy.

Business groups have voiced concerns over increased employer national insurance contributions at Labour’s first post-election budget and the cumulative impact of rising operational costs, including higher business rates and non-competitive energy prices. A recent CBI report highlighted that businesses paid nearly £345 billion in taxes during the 2025-26 fiscal year—an increase of 12.7% from the prior year—and that UK commercial electricity prices were approximately 45% higher than the G7 median.

Leading trade organizations including the CBI, British Chambers of Commerce, and Make UK have submitted recommendations to the Treasury ahead of the budget. Make UK, representing firms such as BAE Systems and Rolls-Royce, emphasized the need for detailed policy measures to realize the government’s ambitions for reindustrialization and inclusive growth, warning that prior slogans like “levelling up” had failed to deliver.

Prime Minister Burnham has positioned his administration as “a partner for growth” committed to supporting entrepreneurs, innovation, and job creation. He has pledged to make business environment improvements that reward ambition and ease the process of starting and expanding companies.

John Foster, chief policy and campaigns officer at the CBI, said that business leaders attending the conference sought reassurance that Labour’s “reset” translates into a genuine “partnership for growth.” Foster stressed the importance of government recognition that business expenses are closely linked to household financial pressures, suggesting that reducing these burdens could yield broader benefits for the economy.

Kate Shoesmith, policy director at the British Chambers of Commerce, described the upcoming budget as critical for signaling the government’s commitment to supporting businesses. She stressed that many firms have been pushed to their limits financially and expressed hope that the Treasury would acknowledge the need to relieve some of the current economic strain.

Following meetings between business council representatives and ministers in recent weeks, Shoesmith noted some government awareness of the challenges companies face. However, uncertainty remains over the scale and timing of any easing measures, underscoring the high stakes for Burnham’s Labour government as it seeks to regain credibility with the business sector amid mounting economic headwinds.