National trade bodies, executive directors, and economic analysts have urged the government to pair its regional growth vision with fiscal discipline and lower operating costs, following Prime Minister Andy Burnham’s inaugural speech on Downing Street.

The Confederation of British Industry (CBI) led calls for a balanced economic approach, warning that ambitions for regional growth must be supported by measures that relieve the pressure on commercial operations.

Rain Newton-Smith, CBI Chief Executive, said: “Congratulations to Andy Burnham on becoming our new Prime Minister. As Mayor of Greater Manchester, he proved his credentials in working with business to strengthen communities and drive economic growth. It’s a way of working he will now need to replicate nationwide, while maintaining fiscal credibility, investor confidence and delivery discipline.

“Ambitious plans to improve the livelihoods of people across the country must be matched by action to get businesses thriving once again. Addressing the cost-of-living challenge needs to go hand in hand with tackling the cost of doing business, so we can deliver sustainable growth in jobs, wages and living standards.

“CBI members recognise the case for a more place-based, delivery-led and partnership-oriented economy. They support the ambition for good growth in every postcode. That starts with building on the bedrocks of stability, accelerating the policies that turn ambition into delivery and changing the things that are stifling investment."

Addressing the mechanics of "Manchesterism"—the policy of transferring economic decisions, transport integration, and skills funding directly to regional authorities—the Institute of Directors (IoD) stressed that successful devolution requires clear accountability and a stable tax environment.

Jonathan Geldart, Director General of the Institute of Directors, said: "The Institute of Directors welcomes the Prime Minister's focus on an economic model aimed at spreading opportunity and growth more evenly across the country. Business leaders share the ambition of building a more resilient and prosperous economy, but success will depend on creating the conditions that enable firms to invest, innovate and grow with confidence. Maintaining a competitive and predictable tax environment will be essential if the UK is to attract the investment needed to deliver sustainable growth.

"Businesses will be encouraged by a willingness to examine how public spending can be better targeted. Given the pressure on the public finances, a sharper focus on value for money and outcomes is essential. The private sector stands ready to work with government to identify more effective ways of delivering infrastructure, public services and economic development. What matters is not simply how much is spent, but how effectively resources are allocated to support long-term prosperity.

"We agree that devolution can be a powerful driver of economic growth when it combines local flexibility with clear accountability. Local leaders are often best placed to identify barriers to growth and unlock economic potential, but devolved institutions must also be accountable for the outcomes they deliver. The success of devolution will depend not only on transferring powers and funding, but on ensuring transparent governance, clear responsibilities and effective scrutiny.

"We support the Prime Minister's ambition to strengthen Britain's industrial base. The UK's industrial strategy is designed to provide long-term certainty for investors, support innovation and skills development, and create the conditions for businesses to grow and compete internationally. Within it, strategic public procurement is referenced for its ability to contribute to these objectives, particularly where it helps develop domestic capability, strengthen supply chains and encourage investment in the industries of the future. We welcome the opportunity to work with the government to ensure that a focussed industrial strategy delivers for British industry.

"The Prime Minister is right to identify the cost of living as a defining concern for households. However, the cost of living cannot be separated from the cost of doing business. Higher energy costs, employment costs, taxation and regulatory burdens ultimately feed through into prices, investment decisions and wage growth. Sustainable improvements in living standards require a policy environment that enables businesses to operate competitively, invest confidently and create well-paid jobs.

“We welcome a greater focus on accountability and long-term stewardship in essential services, such as the water sector. However, there is a risk in assuming that greater public ownership will, by itself, solve the industry's problems. The central issue is the implementation of sound governance. Public utilities require boards, incentives and regulatory frameworks that promote investment, resilience and customer outcomes. As the IoD has argued previously, there may be scope for a new corporate model that better balances the interests of investors, customers and the public while continuing to attract private capital.

"As the government develops its 10-year plan for Britain, business leaders will be looking for a clear partnership with policymakers based on stability, predictability and a relentless focus on growth. The UK's economic challenges are significant, but so too are its strengths. With the right conditions in place, business can play a central role in delivering the investment, innovation and prosperity that communities across the country need."

Real-time employment metrics underline the economic momentum outside the capital, alongside the operational challenges facing smaller firms.

Kevin Fitzgerald, UK Managing Director at Employment Hero, said: “As Andy Burnham steps into the role of Prime Minister, there has already been much said for what his Manchesterism brand of politics might mean for businesses and workers across the UK. The argument that economic growth lies in cities and communities across the UK, and not just in the capital, is a good one. Our data shows employment growth in the North is outpacing even that of London, but employers are being hit harder by rising employment costs and complexity, which has more of an impact on regional businesses and therefore has a knock-on effect on wages. So, if the vision for Manchesterism is growth driven by the regions, then we must look at national policies which make hiring and growth complex for SMEs. Increasing businesses' ability to be ambitious and make hiring decisions will ultimately support SMEs up and down the country to drive employment growth within their communities.”

The wider policy debate also turned to housing infrastructure, with commentators pointing to private housebuilding as a prerequisite for tackling social issues and supporting workforce mobility.

Valentin Boboc, Senior Economist at the Institute of Economic Affairs, said: "When Andy Burnham was Mayor of Greater Manchester, he promised to end rough sleeping by 2020. Yet, official numbers rose for four years in a row and more than doubled from 2021 to 2025, even though millions were spent on the ‘A Bed Every Night’ program.

"The ongoing problem of rough sleeping shows how serious Britain’s housing shortage is. To tackle this, the Prime Minister should focus on speeding up private housebuilding across the country to make future efforts more cost effective."