Andy Burnham’s decisive victory in the Makerfield by-election on Thursday has intensified speculation about his potential rise to national leadership, prompting business leaders to assess the implications for the UK’s economic future. Entrepreneurs interviewed ahead of Burnham’s possible ascent to No 10 expressed a mix of cautious optimism and concern, highlighting the complex balance between regional economic regeneration and national policy priorities.
Burnham, noted for his efforts to revitalize Manchester through investment and regional development, is seen by some in the business community as a figure capable of injecting much-needed energy and confidence into the UK economy. Justin Basini, founder of fintech company ClearScore, praised Greater Manchester’s dynamic business environment, pointing to data showing the region’s productivity growth outpacing London and the South East over the past two decades. For Basini, however, the challenge lies in ensuring that any national economic strategy maintains strong incentives for entrepreneurship and investment rather than undermining them through higher taxes or restrictive policies.
Concerns among entrepreneurs also extend to the broader political landscape. Uncertainty surrounding Chancellor Rachel Reeves’s future and rumoured successors has unsettled some business leaders. Charlotte Gatward, director of jeweller Gatwards of Hitchin, voiced apprehension about potential appointments such as Angela Rayner or Ed Miliband, citing fears that they lack business acumen and prioritizing policies like net zero could come at the expense of economic stability.
Technology sector leaders raised alarms over maintaining momentum in areas such as artificial intelligence (AI). Alex Depledge, a serial entrepreneur and adviser to Reeves, emphasized the urgency for the UK to capitalize on a narrow window to establish itself as a global AI leader, warning that significant governmental changes could delay progress and cost the country its competitive edge.
Meanwhile, Simon Thomas, founder of graphene microchip company Paragraf, highlighted a broader issue: the UK’s strength in founding companies contrasts with its difficulty in supporting them through scaling and manufacturing stages. He stressed the risk of the country becoming an “incubator economy,” where successful innovations are developed only to be commercialized abroad.
Tax incentives remain a focal point of the debate. Early-stage investment schemes such as EIS and SEIS have fostered startup growth, but entrepreneurs like Martin Port, who has repeatedly founded and sold companies, argue that the current tax system does little to motivate successful entrepreneurs to reinvest their wealth into new ventures. Port advocates for reforms that better leverage the experience of seasoned founders to benefit the wider economy.
Beyond tax policy, business figures underscore the need for stability and regulatory adjustments to ease operational challenges. Alexandru Voica of AI firm Synthesia pointed to restrictive labor market practices, including long notice periods and non-compete clauses, as barriers to hiring and growth, suggesting that reforms in these areas could aid startups without fiscal cost.
Ultimately, entrepreneurs seek more than just lower taxes; they desire a stable and predictable environment that fosters confidence. Burnham’s primary challenge, should he become a national leader, will be to align economic growth with social goals in a way that positions entrepreneurs as integral partners in the nation’s future, rather than merely sources of tax revenue.