Former Business Secretary Peter Kyle has accused Prime Minister Andy Burnham’s government of failing to prioritize economic growth with sufficient urgency. Speaking to the BBC, Kyle stated that while his comments were not intended as a direct criticism, the administration needs to act faster to unlock the country’s potential.
Kyle, who served in the cabinets of both Sir Keir Starmer and Burnham, was removed from his position during Burnham’s first cabinet reshuffle. He argued that if the goal is prosperity, freedom, and security, the government must “put our foot down” to achieve these aims more quickly.
The remarks come ahead of the Labour Party’s annual conference in Liverpool, where Burnham is scheduled to address delegates on Tuesday. The Prime Minister has previously outlined his “theory of growth,” emphasizing that devolving power to local regions is essential for creating economic opportunities in every postcode.
In an interview with Laura Kuenssberg, Kyle suggested that the government should be willing to endure short-term pain for long-term gain. He specifically called for an honest conversation with trade unions about sequencing new employment rights. Although the Employment Rights Act was passed in December 2025, some provisions are not set to take effect until next year. Kyle implied that delaying certain expansions of workers’ rights could help boost immediate economic growth.
Additionally, the former minister proposed the introduction of a “tax growth test” to assess the economic impact of tax policies and urged experts to identify and remove barriers to expansion. Kyle acknowledged that Chancellor John Healey faces significant challenges, including rising debt costs and slower-than-expected growth. The OECD currently projects UK economic growth at 1% for the year, down from an earlier forecast of 1.1%. Healey is set to deliver his first Budget on October 28.
Despite the internal friction, other senior figures remain supportive. Earlier this week, Starmer ally Darren Jones defended the leadership to the New Statesman, arguing that leaders should be given time to implement difficult structural decisions. Jones expressed a collective responsibility among backbenchers to help Burnham succeed, stating that the party wants its leadership to “get it right.”
Burnham needs to unite the party, not play musical chairs with his cabinet. This looks messy.
The OECD dropping forecasts to 1% makes Kyle’s urgency understandable, even if his tone was off.
Is it just me, or is this factionalism going to get exhausting before the Budget even lands?
Delaying workers’ rights for growth? That’s a tough pill to sell to the Labour base.
Sacking him and then ignoring his advice seems counterproductive. Kyle clearly sees things others miss.