A Starmer cabinet minister argued that Andy Burnham’s administration lacks sufficient focus on economic growth and should act with greater urgency.
Speaking to the BBC two months after his dismissal in Burnham’s cabinet reshuffle, Peter Kyle said he was not criticizing but highlighting the country’s and government’s untapped potential.
“If achieving prosperity means giving people freedom to innovate and ensuring security for families, why shouldn’t we move forward more quickly?” the former business secretary asked.
Labour is set to convene for its annual conference in Liverpool.
Burnham will speak at the conference on Tuesday, pledging that his remarks will clearly outline his objectives in the role.
He previously noted that his tenure as Greater Manchester mayor gave him a clear vision of growth, emphasizing the need to devolve powers to local communities.
He argues that granting greater control to regions and nations would foster strong growth across all postcodes.
Kyle previously held the positions of science secretary and business secretary in Starmer’s government, and is now back on the backbenches representing Hove and Portslade.
In an interview with Laura Kuenssberg, he said the government must be prepared to endure short‑term pain to achieve economic growth, even if it means postponing expanded workers’ rights.
“We may need to engage in candid discussions with unions about how to phase in rights to ensure faster economic growth,” he added.
The Employment Rights Act, passed in December 2025, will see some provisions take effect only next year.
He also proposed a ‘tax growth test’ to assess each tax’s economic impact and asked experts to identify growth obstacles.
When asked whether growth receives sufficient attention, Kyle responded that it does not, adding that this observation reflects the nation’s and government’s potential rather than criticism.
“We must raise our ambition and act with greater urgency on economic growth,” he said.
Chancellor John Healey is scheduled to deliver his first Budget on 28 October, amid rising debt costs and concerns about slower growth.
The OECD forecasts UK economic growth of 1%, marginally lower than the earlier 1.1% projection.
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