Steve Rigby: Burnham has a chance bring confidence back to British business
If Andy Burnham focuses on AI, devolution and regional development, he has a chance to turn British stagnation around – and his record in Manchester is cause for cautious optimism, says Steve Rigby
The transition to our seventh prime minister in a decade is now well underway. Since 1721, we have had only 58 Prime Ministers, which puts this stretch of churn into perspective.
Putting hope ahead of experience, I feel optimistic. Andy Burnham arrives with strong political backing and a broad base of support, built as leader of one of the UK’s most prosperous regions.
Although light on detail – especially around fiscal policy – the Prime-Minister-in-waiting’s speech on Monday included encouraging ideas around skills, housebuilding and, crucially, devolution. If executed with the confidence with which the speech was delivered, these policies would provide a sustained boost to the economy.
As with all successful civic projects, Burnham’s achievements in Manchester are built on a thriving economy and an engaged business community. Over the past decade, the city has become one of Europe’s fastest-growing tech hubs. Here, Burnham and his team are due some credit.
And yet, as so many have pointed out, the mayor’s office is very different to 10 Downing Street. The new PM will discover this in every facet of his job, not least working with business leaders, whose patience with Labour has been severely tested over the past two years.
As Burnham looks ahead, the one thing he must hold on to is the mantra of growth. Behind today’s inequality and behind most of the public’s frustration, sits a simple problem: we are not growing.
The current government has hampered the ability of business to deliver growth through additional taxation, regulation, and by increasing the cost of doing business. It would be a mistake for a Burnham government to follow the same path.
Dynamism
What we need is to inject a burst of dynamism into the economy that gives employers confidence, drives the jobs market, pushes up wages through real demand and tells global capital that Britain is the place to be. Andy Burnham’s time as Mayor of Greater Manchester gives me hope that he can achieve this.
Words are easy; action is hard. But this time there is one real difference: artificial intelligence. The United States has grown 27 per cent over the past decade and the biggest single reason in the last two years is the AI build-out.
For the first time in living memory there is no shortage of capital or demand, only supply. The US has seized this, but the UK is moving far too slowly. AI investment, unlocked through energy infrastructure and planning, is our single biggest opportunity.
Burnham recognises that innovation is key to growth, outlining his intention to back the scientists and entrepreneurs who will grasp the AI opportunity. But intentions must be followed by actions and AI has to be a priority.
The regions are the next prize and this is where Burnham’s experience counts. The Rigby Group was founded by my father in the West Midlands more than half a century ago and we truly understand the power of place in economic development. It is encouraging to hear that ‘good growth in every postcode’ is a significant part of economic policy.
Backing residential and commercial development across the UK, together with critical infrastructure, creates jobs, builds lives, attracts talent and gives entire communities hope.
Nationally strategic projects are another growth hack that must be a priority. Heathrow could bring in 60m more visitors a year, many here to do business. The tourists alone would pour income into our battered hospitality and retail sectors. We simply need to pull the lever and get on with it. No ifs, no buts. Go.
We are all hopeful for better times and all ready to play our part. Over to you, Andy.
Steve Rigby is CEO of Rigby Group