Andy Burnham, the prime minister, has pledged to restrict non-compete clauses in employment contracts to boost job mobility and innovation in the UK. In a speech, he stated these clauses have become excessive, hindering workers' ability to move between companies or start their own businesses. Research estimates that around 5 million jobs in Britain are affected by such clauses, typically lasting six months. Burnham aims to introduce new legislation to address this issue without specifying details yet, ahead of the upcoming Budget on October 28th.
Written locally by qwen2.5:14b on 2026-10-09,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Andy Burnham, Britain's Prime Minister, announced plans to legislate against non-compete clauses in job contracts during a speech at a business summit in Manchester. He stated that these restrictive practices prevent workers from joining rival organizations or starting their own companies after leaving their current roles, which stifles innovation and hinders economic dynamism. Research cited by the government estimates that around 5 million jobs in Britain are covered by non-compete clauses, typically lasting six months. Burnham pledged to ensure that non-compete clauses will no longer hinder hiring for promising startups and scaling firms, aiming to mirror the impact of the Bosman ruling on the football industry. The move is seen as part of efforts to encourage innovation and job mobility in key sectors like financial services and technology.
Written for “Curb NonCompete Clauses” on 2026-10-09,
grounded in this article and the 3 other(s) covering the same event.
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Leaning: leans left for article 68352 (high confidence, 1 verified quote) · logged 2026-10-09
- Published
Andy Burnham has promised to curb companies' ability to restrict what their workers can do after leaving their job.
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workers → publish → job
In a speech, the prime minister said the use of non-compete clauses in employment contracts had "gone too far" and was holding innovative UK companies back.
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use → say → companies
He added the clauses had forced workers to go without pay after leaving a role, as well as making it harder for growing firms to hire new staff.
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firms → add → staff
Ahead of the Budget later this month, he also said there was "more to do" on tax to encourage promising firms to stay in the UK.
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he → say → UK
Sir Keir Starmer's government had been exploring possible restrictions on non-compete clauses since late last year, including a total ban, banning them above a certain salary threshold, or limiting how long they can last.
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they → explore → threshold
Although commonly associated with the financial services and technology sectors, research cited by the government has estimated around 5 million jobs in Britain are covered by the clauses, typically lasting around six months.
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jobs → associate → months
Speaking at a business summit in Manchester, Burnham confirmed his government would press ahead with new legislation to ensure the clauses can "no longer be a barrier" to hiring new staff.
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clauses → speak → staff
He added that their use had stopped workers leaving to join other companies, or founding their own firms instead, adding: "I think that's a drag on innovation."
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that → add → innovation
Referencing a landmark 1995 court ruling that is credited with revolutionising the football transfer market in Europe, he said he hoped reining in non-compete clauses could prove the "Bosman ruling for the innovation sector".
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reining → reference → sector
Burnham did not specify the scope of the restrictions he is planning, but suggested they would apply to the "everyday economy" as well as helping "promising start-ups and scaling firms".
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they → specify → ups
It is understood that the government is planning to unveil details of the proposed restrictions, which were first reported by Politico and the Financial Times, alongside the Budget on 28 October.
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which → understand → October
The previous Conservative government had ruled out a total ban, external on non-compete clauses, after hearing from employers that it could reduce investor confidence in the UK or prompt companies to tighten how they share information internally.
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they → rule → information
The prime minister sought to frame the announcement on non-compete clauses as part of a wider government pitch to boost innovative sectors of the economy.
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minister → seek → economy
He told the summit that although the UK was home to outstanding research and start-ups, too many companies had gone abroad in search of investment.
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companies → tell → investment
He also signalled that the government would "say more" at the Budget about plans to use public investment as a way to encourage private funding in the economy.
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government → signal → economy
He added that he wanted all UK regions to have a dedicated fund to do this, modelled on the Good Growth Fund launched in Greater Manchester last year, during his tenure as mayor of the city-region.
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regions → add → region
He also hinted that the government was looking at ensuring the tax system to ensure the UK can retain high-growth companies.
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UK → hint → companies
He said: "One of our biggest challenges is breaking through our own ceiling.
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One → say → ceiling
Too often, our best ideas are developed and scaled overseas, and with it the jobs, technology and investment that goes with them."
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that → develop → them
"So I know there is more to do to fix that, specifically on tax, to encourage people to stay and scale."
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I → know → people
The Aporia
