Delivering growth must be priority for new Government – Chamber

Business leaders in Greater Birmingham today called for new Prime Minister Andy Burnham to place business at the heart of his plans for economic growth.

Mr Burnham, the former mayor of Greater Manchester, is set to be installed as Sir Keir Starmer’s successor today following his unopposed victory in the Labour Party leadership contest.

Greater Birmingham Chambers of Commerce said firms across Birmingham and the wider West Midlands stood ready to work with the new Government.

However, the Chamber warned businesses continued to face significant cost pressures - and called for swift action to restore confidence and reduce the financial and regulatory burden on employers.

Raj Kandola (pictured), deputy CEO at Greater Birmingham Chambers of Commerce, said: “On behalf of the Greater Birmingham business community, we congratulate Andy Burnham on becoming Prime Minister.

“Businesses across Birmingham and the wider West Midlands stand ready to work with the new Government to deliver stronger growth, greater investment and improved prosperity across every part of the country.

“A pro-business approach, greater emphasis on skills and education, and a commitment to devolving more power to the regions would all be welcomed by firms in our region.

“However, the new Prime Minister faces an immediate and significant challenge. Businesses continue to grapple with rising employment costs, persistent inflationary pressures and uncertainty over future taxation.

“If the Government is serious about unlocking growth, it must demonstrate unequivocal support for the private sector and take swift action to reduce the cost and regulatory burden facing employers.

“Recent increases in National Insurance contributions have damaged confidence and made it harder for businesses to recruit, invest and grow. Further tax rises on firms would risk placing an even greater strain on an already challenging operating environment.”

Emily Stubbs, head of policy at the GBCC, said Greater Birmingham had the assets and ambition to play a leading role in driving the UK economy but required greater investment and decision-making powers.

She added: “Greater Birmingham is a major economic engine with enormous potential, but businesses need the right conditions to succeed. That means investment in transport infrastructure, skills, innovation and the regeneration of our towns and city centres.

“Meaningful fiscal devolution will also be essential. Regional leaders must have the funding and flexibility to respond to local economic priorities, with the business community fully involved in deciding how resources are deployed.

“We look forward to working with the new Government, our regional partners and businesses across Greater Birmingham to help turn these ambitions into tangible economic growth.”

Pictured: Raj Kandola (right) with Andy Burnham at last year's Regional Investment Summit in Birmingham