Andy Burnham is facing warnings from political opponents against placing new business taxes or a leftward lurch if he becomes prime minister.
These cautions will be voiced at a gathering of business chiefs, where opposition leaders plan to outline their economic response to a Sir Keir Starmer’s potential successor.
Chancellor Rachel Reeves is also expected to speak at the event, stressing the Government’s commitment to economic stability as a foundation for growth, even as Cabinet changes loom.
Shadow Chancellor Sir Mel Stride will specifically urge Mr Burnham to rule out further tax rises on businesses for the remainder of the Parliament.
Senior Conservative Sir Mel is expected to say: “If Andy Burnham does not rule out coming back for yet more tax rises on business, there is a clear risk that investment and hiring decisions are put on hold once again as the budget approaches later this year.”
During the Makerfield by-election campaign, Mr Burnham promised to slash taxes for pubs and other hospitality businesses, to give them reprieve from rising business rates.
If Mr Burnham took the step of ruling out future tax rises, he would “show that he gets” the concerns of businesses, Sir Mel will say.
Elsewhere, Liberal Democrat leader Sir Ed Davey will warn Mr Burnham not to “lurch to the left” should he become prime minister.
Sir Ed will describe a lack of growth in Britain’s economy as the “original sin” of the Government, and urge Mr Burnham to adopt the Lib Dems’ plans for a growth and defence partnership with the EU.
He will say: “Tearing down the barriers to trade. Ending the mountains of paperwork. Cutting costs for businesses.
“Giving our young people the chance to study and work, live and love anywhere in the EU.
“Undoing the damage of the Johnson-Farage Brexit deal that has held our economy back for so long.
“Giving British businesses the certainty they need to invest, to hire, and to grow.”
Chancellor Ms Reeves will meanwhile tell business chiefs at the conference that her focus remains squarely on providing economic stability and certainty.
Several media reports have suggested Mr Burnham wants to install a new Chancellor in No 11 Downing Street, and offer Ms Reeves a more junior Government role.
But she will use her appearance 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 Labour came to power, and doubling the buffer above Government spending plans.
Growth across all regions of the UK, leading in new technologies, and deepening ties with Europe remain the major growth opportunities, Ms Reeves will add.
Green Party leader Zack Polanski will meanwhile use his speech at the BCC conference to build business confidence in his party.
He will say: “Now, some of you might have some preconceptions about me, and the Green Party.
“That we’re not interested in what business can offer.
“And look – plenty of you probably won’t agree with me on everything.
“But there are a few things I think we can agree on: That the job of government is to provide long-term stability, and an environment in which good businesses can thrive; That all of us – families, individuals, workers, businesses – do best when we know what’s coming, and we’re supported to meet it; And that a strong economy, one which enables us all to reach our potential, must be a resilient economy, a sustainable economy, and a futureproofed economy.”
He will call for an end to the “decade of instability” that has followed the Brexit vote, and promise to provide “clarity, stability and a serious vision” for business and the economy.
