Peter Kyle, who served as business secretary during Sir Keir Starmer's premiership, has criticised Andy Burnham's administration for insufficient focus on economic growth. Speaking to the BBC two months after his removal from Burnham's cabinet during the reshuffle that followed the new prime minister's entry into office, Kyle argued the government needs to pursue expansion with greater speed and ambition.
"If the destination means prosperity, it means freedom for people to do new things, and it means security for people and families, then why wouldn't we put our foot down and get there quicker,"the former business secretary said. He characterised his remarks not as a "criticism" but as "pointing to the potential that we have as a country and as a government".
Kyle's intervention comes as the Labour Party prepares to convene in Liverpool for its annual conference. The gathering runs from 27 to 30 September 2026 at the Liverpool Experience Campus, with Burnham scheduled to deliver his keynote address on Tuesday. The prime minister has signalled his speech will make clear his vision for the role, having previously outlined what he describes as a "clear theory of growth" developed during his tenure as Greater Manchester mayor.
What is Burnham's growth strategy?
Burnham has emphasised the importance of devolving powers to local areas as the foundation for economic expansion. He contends that granting regions and nations greater autonomy would establish the conditions necessary for what he terms
"good growth in every postcode". His conference messaging also promises "the biggest rebalancing of power our country has ever seen", positioning devolution as central to his economic vision.
What specific changes is Kyle proposing?
In his interview with the BBC's Laura Kuenssberg, Kyle outlined several measures he believes would accelerate growth. He suggested the government should be prepared to make decisions involving "short-term" pain to achieve longer-term economic expansion, specifically proposing a reassessment of the timing for implementing workers' rights.
"We might need to look and have honest conversations with unions about how we sequence some of the rights going forward in order to make sure that we get growth into the economy in the shorter term,"he said. The Employment Rights Act received parliamentary approval in December 2025, though some provisions are not scheduled to take effect until the following year.
Kyle also advocated for introducing a "tax growth test" that would evaluate how each tax affects economic performance, and called for government specialists to identify and remove "obstacles" to growth. When asked directly whether the administration prioritises growth sufficiently, he responded:
"I don't think there is and that isn't a criticism - it is pointing to the potential that we have as a country and as a government. I think we need to up our ambition, I think that we need to act with more urgency when it comes to economic growth."
What is Kyle's current role?
Kyle held positions as science secretary and subsequently business secretary in the Starmer administration before returning to the backbenches as the Member of Parliament for Hove and Portslade following his removal from the cabinet.
What economic headwinds does the government face?
Chancellor John Healey is preparing to deliver his first Budget on 28 October, operating under significant constraints. The government confronts rising debt servicing costs alongside forecasts of slower economic expansion. According to the Organisation for Economic Co-operation and Development, the UK economy is projected to expand by 1%, a reduction from the 1.1% growth rate previously anticipated.
What have other government figures said?
Kyle is not alone in offering counsel to the administration. Earlier this week, Darren Jones, a former chief secretary to the prime minister and fellow Starmer ally, told the New Statesman that Sir Keir should have been afforded more time in office. Jones criticised
"this modern approach of getting queasy and then just changing [leader] too rapidly", arguing that
"In the past it was normal for governments to be unpopular midterm because you've got to take difficult structural long-term decisions."
Jones added:
"Irrespective of what's happened and how, we want it to be successful, and we have a collective responsibility to help make that the case. We, as backbenchers in the PLP [Parliamentary Labour Party], are looking to… Andy and his team to get that right. We want them to get it right."
What happens next at the conference?
The Labour conference programme includes multiple sessions focused on economic expansion. A dedicated session on "Unlocking growth: How talent and skills can power the economy" is scheduled for Monday 28 September 2026, reflecting the party's emphasis on this agenda. The Fabian Society is also hosting an "AI and Good Growth in Every Region" reception on the opening day, Sunday 27 September, signalling the breadth of growth-focused programming across the four-day event.
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