Director Weekly  Political turmoil is rarely good news for business, but could Andy Burnham’s plan to rewire the state finally boost economic growth?

Promises of greater public control of utilities such as water, housing, energy, and transport could have major ramifications for business as they are fleshed out. More positive, perhaps, was the pledge to reform business rates to support pubs and high street businesses. [PW1.1]

The months to come will bring more detail on those points – but the central focus of this speech was to be found elsewhere. Here are three key takeaways.

1. Rewiring the state is ambitious and challenging – but may pay off

At the heart of this speech was Burnham’s vision of “a rewired Britain.” He plans to establish a new government “nerve centre” in Manchester, dubbed No. 10 North, to spearhead a radical devolution of power away from Westminster and Whitehall.

There is evidence to recommend this approach. The UK is one of the most centralised countries in the world, and research by The Productivity Institute [PW2.1]has found measurable benefits in devolving power to local policymakers who better understand the challenges in their area.

Drawing on his mayoral track record, Burnham said he would “ask everyone to face the same way and then pull in the same direction together” – including public bodies, the private sector, unions, and community groups. The research supports that notion: when stakeholders are aligned, and requisite funding is in place, much can be achieved. Institutional design is key: setting public bodies up to collaborate, with stable structures and leadership free from the five-year Westminster political cycle, will be critical.

The obvious challenge is cost, although the Manchester model was achieved with limited additional funding. More important is whether this will interrupt other work, if people are having to focus on the rewiring rather than on things like infrastructure delivery that could more directly help the economy in the here and now.

2. Backing for the existing fiscal rules is welcome

Burnham recommitted to the current fiscal rules – a very sensible market-pleasing move, since a Truss-style market crisis could quickly imperil his government. Note that they are more flexible than sometimes assumed: they do allow more borrowing for investment, which the markets may tolerate if Burnham can make a clear economic argument.

However, Burnham’s disciplined position has been somewhat undermined by MPs proposing various new taxes on wealth creators (otherwise known as investors) as they jostle for position in the new administration. The last thing we need is a repeat of the uncontrolled speculation that has preceded the last two Budgets. Burnham should move quickly to set out the direction of travel, and insist on an end to this noise-off that undermines business confidence and stifles growth.

3. The economic backdrop is challenging

The fragility of business confidence is underlined by the latest data from the IoD Directors’ Economic Confidence Index, published this week. Confidence dropped to -61 in June 2026 from -53 in May. Revenue expectations fell more sharply and supply chain and cost concerns persisted, as the fallout from the war with Iran continues to be felt.

The data emphasises the challenges facing Burnham. The UK economy is far weaker in 2026 than it might have been: partly due to the war, but also due to policy decisions over the past two years.

As a result, he will find that many businesses are sceptical of a new raft of political promises. We heard lots about growth over the last 2-3 years, yet the reality has been disappointing. Funding to boost the economy – including through the Industrial and Infrastructure Strategies – has been too slow to reach the ground. The only things done rapidly, it has seemed, were to businesses’ detriment – including tax hikes and other increases to the cost of employment. Confidence has been suppressed, investment has gone elsewhere, and the labour market has softened. Winning business’s confidence will be tougher in 2026 than it was in 2024.

Fans of 1960s musicals may remember Eliza’s words in My Fair Lady, which have come to mind this week.

“Words! Words! Words! I’m so sick of words!”, she sings, before finishing with, “Don’t wait until wrinkles and lines pop out all over my brow: Show me now!”

Speeches only go so far. Burnham recognised that “people can’t wait for ever for change.” Business leaders will be looking for concrete steps to boost growth, and fast.