Andy Burnham made his Burnham devolution pitch to businesses on Monday, hosting executives from Aviva, Rolls Royce and Revolut UK at a Downing Street reception where he called for a ‘culture shift’ in how Britain does business. The event came as Chancellor John Healey begins drawing up an Autumn Budget, set to be delivered on 28 October, with industry groups pressing the government to cut taxes and reduce the costs of trading.
Speaking ahead of the event, Burnham said: ‘If we’re going to unlock this country’s full potential, we need a culture shift in how Britain does business. That means putting government firmly on the side of the people who take risks, start companies, create jobs and bring new ideas to life. It means ensuring ambition is rewarded, making it easier to start and grow a business, and giving people the confidence that if they have a great idea, they’ll get all the support they need to bring it to life.’
Burnham’s Devolution Pitch to Businesses: The Detail
Burnham is expected to tell guests that the government’s devolution plans will enable infrastructure to be built faster, attract greater investment and create more opportunities in communities across Britain. The approach draws on an international model: according to The Burnham Programme, he frequently cites Germany as an example, highlighting the strength of regional government and decentralised economic decision-making as drivers of prosperity.
The scale of the devolution agenda is expanding. Politico reports that Burnham has vowed to extend devolution to more areas of England and to go beyond economic investment, looking also at public services such as bus networks. The groundwork for that expansion was laid earlier: in February 2025, Angela Rayner, then the local government secretary, announced plans for six new mayors covering Cheshire and Warrington, Cumbria, Essex, Hampshire and Solent, Norfolk and Suffolk, and Sussex and Brighton, according to the BBC.
Burnham is also planning to establish a second official base in Manchester, a move seen as underlining his commitment to shifting power away from the capital. TIME reports the additional base will be located in Manchester, a nod to his efforts to decentralise government away from London.
Budget Pressure Looms Over the Room
The Downing Street reception takes place against a tense fiscal backdrop. Some economists have forecast that the £22 billion in fiscal headroom left by former Chancellor Rachel Reeves in her 2025 Budget could be as much as halved after gilt yields spiked in a recent bond sell-off. Analysts have warned Healey has little room for further borrowing and will be forced to hike taxes in order to stay within the fiscal rules, which require day-to-day spending to match receipts by 2030.
The bosses of Britain’s largest industry groups kicked off their Budget campaigns last week, calling for cost reductions and pro-growth measures. A number of revenue-raising options have been rumoured as under contention, including taxes on banks, a hike to capital gains and the introduction of a controversial exit tax.
Ahead of the main reception, Burnham also hosted a roundtable with leading entrepreneurs including those from Octopus Energy, Oxford Quantum Circuits and Oaknorth. Founders have been among the most vocal critics of the proposed exit levy, which would be charged to business owners who leave the country. Several executives previously told City AM that speculation about the measure was already causing some founders to consider moving overseas.
The dual format of the evening, a business reception followed by a separate entrepreneur roundtable, reflects the government’s stated ambition to position itself as a partner to both established corporates and early-stage companies. Whether the warm words translate into concrete Budget commitments will become clear when Healey delivers his statement on 28 October.
