Andy Burnham issued warning over tax rises should he become prime minister

Andy Burnham faces warnings from political opponents against introducing new business taxes or moving left if he becomes prime minister.

The warnings will be voiced at a meeting of business leaders where opposition leaders plan to outline their economic response to Sir Keir Starmer’s potential successor.

Chancellor Rachel Reeves is also expected to speak at the event and highlight the Government’s commitment to economic stability as the basis for growth even as Cabinet reshuffles approach.

Shadow Chancellor Sir Mel Stride will specifically urge Mr Burnham to rule out further tax rises on businesses for the rest of Parliament.

Senior Conservative Sir Mel is expected to say: “Unless Andy Burnham rules out coming back for more tax rises on business, there is a clear risk that investment and hiring decisions will be put on hold once again as the budget approaches the end of this year.”

During the Makerfield by-election campaign, Mr Burnham promised to cut taxes on pubs and other hospitality businesses to stave off rising business rates.

Sir Mel will say Mr Burnham will “show he understands” businesses’ concerns if he takes the step of ignoring future tax rises.

Meanwhile, Liberal Democrat leader Sir Ed Davey will warn Mr Burnham against “moving left” if he becomes prime minister.

Sir Ed will describe the lack of growth in the British economy as the Government’s “original sin” and urge Mr Burnham to embrace the Liberal Democrats’ plans for a growth and defense partnership with the EU.

He will say: “Breaking down barriers to trade, ending mountains of paperwork, reducing business costs.

“We give our young people the chance to study, work, live and love anywhere in the EU.

“Undoing the damage done by the Johnson-Farage Brexit deal, which has held our economy back for too long.

“We give British businesses the certainty they need to invest, hire and grow.”

Chancellor Ms Reeves will meanwhile tell business leaders at the conference that the focus remains squarely on providing economic stability and certainty.

Many media reports suggested that Mr Burnham wanted to appoint a new Chancellor at No 11 Downing Street and offered Ms Reeves a lower-level Government post.

But he will use his attendance at the conference to highlight the results of the Government’s economic plan: multiple interest rate cuts, the fastest growth among European G7 countries since Labor came to power and a doubling of the buffer on Government spending plans.

Ms Reeves adds that expanding across all regions of the UK, pioneering new technologies and deepening ties with Europe remain key growth opportunities.

Green Party leader Zack Polanski, meanwhile, will use his speech at the BCC conference to boost business confidence in his party.

He will say: “Now some of you may have prejudices about me and the Green Party.

“We are not interested in what business has to offer.

“And look, most of you probably won’t agree with me on everything.

“But I think there are a few things we can agree on: The government’s job is to provide long-term stability and an environment in which good businesses can thrive; We all – families, individuals, workers, businesses – do best when we know what’s going to happen and are supported to meet it; And there must be a strong economy, a resilient economy, a sustainable economy and a future-ready economy that enables us all to reach our potential.”

He will call for an end to the “decade of instability” that followed the Brexit vote and pledge to provide “clarity, stability and a serious vision” for business and the economy.