Andy Burnham's honeymoon period has been further bolstered by positive economic news. As Parliament returns from recess, now is the time for bold moves, writes Eva Barboni.

Andy Burnham's lucky streak appears to be continuing. After sweeping into Number 10 this summer, the Prime Minister now heads into the autumn with the economic winds at his back.

Over the past week, a series of positive news stories have begun to paint a more optimistic picture of Britain's economy. The UK grew faster in the first half of this year than any of its G7 peers, including the US. Consumer confidence hit a two-year high. The services sector recorded its best growth in six months. Manufacturing orders reached their highest level since November 2024. And a new report from the Resolution Foundation shows that productivity may be higher than official data suggests.

Not everything is rosy, of course. Cost-of-living pressures continue to pinch. Burnham is well aware of this and has made it a major focus of his first month in office. But while his efforts so far have centred primarily on reducing prices, another critical piece of the puzzle remains: improving livelihoods.

To achieve that, he needs to focus on policies that will help create well-paid, resilient jobs across the country. One area of the economy stands out as driving job creation more than any other: scale-ups.

The OECD defines scale-ups as companies growing by more than 20 per cent per year in either headcount or revenue over a three-year period, with a minimum of 10 employees at the start of that period. Research by the OECD has long highlighted that this relatively small group of firms accounts for a disproportionate share of net job creation in advanced economies. By their very definition, these companies have demonstrated they know what it takes to deliver growth — despite significant economic headwinds over the last several years. With the economic winds now changing, backing these companies to scale even more quickly is a straightforward choice.

What business wants from Burnham

Over the last several weeks, I have spoken with scale-up founders in our growing community to understand what they want from Burnham. Here is what they told me.

First, they want strong signals that Burnham's economic vision includes a focus on scale-ups. The recent announcement of the £1bn UK Scale-up Fund was a very positive step. Now it is time to double down. Economic policy often focuses on start-ups at one end and large corporates at the other, but scale-ups are the true drivers of job creation, and their unique needs frequently get lost in the shuffle. They need policies that help them hire skilled talent at a speed matching their growth, and access to capital at a level matching their ambition.

Second, they want stability and certainty. For many businesses, memories of last year's budget remain front of mind. Months of speculation and trial balloons brought economic activity to a standstill. Companies postponed investment and hiring decisions because the direction of travel was unclear. The British public took the hit: the job market slowed, and growth stalled. The Burnham government has clearly studied what went wrong, and its messaging shows it understands the need for stability. Now it must demonstrate it will do things differently. That test comes quickly: with Parliament back and a first budget on the horizon, opposition parties and backbenchers will be probing whether the government's spending and tax choices can match its rhetoric.

Finally, scale-ups want a vocal ally. Burnham has shown he is a strong communicator, and now is the moment to use that skill to sell the policies that will help businesses grow. For too long, political debate in Britain has treated economic policy as a zero-sum game, pitting workers' interests against businesses' interests. But sustainable economic growth comes from policies that both help businesses thrive and give workers opportunities to advance and succeed in their careers. Burnham may be ideally placed to make this case to the public.

When Parliament returns from recess next week, the real scrutiny of Burnham will begin. But one final piece of data works in his favour: his net favourability ratings are the highest of any British Prime Minister in more than six years. He should make the most of this honeymoon period to deliver policies that will put Britain on a path towards shared prosperity for years to come. The coming months — above all the first budget, which the recent growth figures have handed him room to shape — will show whether he uses it.

Eva Barboni is the executive director of Enterprise Britain, a movement of entrepreneurs, business leaders and investors.