Starmer Ally Urges Greater Urgency on Economic Growth

A prominent figure in Sir Keir Starmer's government has called for increased focus and a faster pace in efforts to boost economic growth, suggesting the current approach lacks sufficient urgency.

Peter Kyle, who previously served as business secretary before returning to the backbenches, told the BBC that while he is not issuing a direct criticism, he believes the country and the government have untapped potential that could be realized more quickly. "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," Kyle stated.

His remarks come as the Labour Party prepares for its annual conference in Liverpool. Andy Burnham is scheduled to address the conference, with his speech intended to clarify his objectives in his current role. Burnham has previously articulated a "clear theory of growth" based on devolving powers to local areas, arguing this approach fosters "good growth in every postcode."

Kyle, the MP for Hove and Portslade, suggested that the government might need to consider difficult decisions involving short-term challenges to achieve long-term economic gains. He specifically mentioned the possibility of re-evaluating the timing of certain workers' rights expansions in consultation with unions. "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 government's Employment Rights Act was passed in December 2025, but some provisions are not set to take effect until the following year.

Furthermore, Kyle proposed implementing a "tax growth test" to assess the economic impact of each tax and enlisting government experts to identify and address barriers to growth. Responding to a question about the current level of focus on economic growth, Kyle replied, "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."

Chancellor John Healey is preparing to deliver his first Budget on October 28, facing a landscape of rising debt costs and forecasts of slower economic expansion. The Organisation for Economic Co-operation and Development (OECD) has projected that the UK economy will grow by 1%, a slight reduction from its previous 1.1% forecast.