Andy Burnham’s honeymoon meets reality as scale‑up sector seeks decisive action

Prime Minister Andy Burnham entered office in the summer with a wave of optimism, and recent data suggests the tide may be turning in his favour. The UK economy grew faster in the first half of the year than any other G7 nation, consumer confidence reached a two‑year peak and the services sector posted its best performance in six months. A new Resolution Foundation report even hints that productivity could be higher than official figures indicate.

Why scale‑ups matter now

While the headline numbers are encouraging, the Burnham administration has focused its early efforts on easing cost‑of‑living pressures. Entrepreneurs argue that the next step should be to nurture the segment that creates the most jobs: scale‑ups. The OECD defines scale‑ups as firms that expand revenue or headcount by at least 20 % a year over three years, starting with a minimum of ten employees. By that metric, they have already demonstrated resilience through recent headwinds.

Founders consulted by Enterprise Britain say they need three things from the new government. First, a clear signal that scale‑ups are a priority, the £1 bn UK Scale‑up Fund announced earlier this year was welcomed, but they want the commitment deepened. Second, policy stability; last year’s budget uncertainty stalled hiring and investment, leaving the labour market sluggish. Third, a vocal champion in the Cabinet who can frame growth as a win‑win for businesses and workers alike.

What’s at stake as Parliament returns

Parliament resumes next week, and the real test of Burnham’s agenda will begin. Critics will scrutinise whether the promised support materialises into concrete measures, from faster access to capital to streamlined hiring regulations. The stakes are high: a stable policy environment could accelerate the current economic momentum, while continued uncertainty may erode the gains seen in consumer confidence and services growth.

He should make the most of this honeymoon period to deliver policies that will put Britain on a path towards shared prosperity for years to come.

Burnham’s personal popularity is at a six‑year high, giving him political capital to push through reforms. If he can translate that goodwill into tangible assistance for scale‑ups, the UK could see a sustained uplift in productivity and wages. Conversely, a failure to act may see the early optimism fade, leaving the country vulnerable to the same stagnation that plagued previous administrations.

Industry observers note that the next few weeks will reveal whether the government’s rhetoric matches its actions. The upcoming parliamentary session will likely feature debates on the Scale‑up Fund, tax incentives and labour market reforms, all crucial levers for the sector.

For a fuller picture of the macro backdrop, see how UK business confidence hit a two‑year high earlier this month.