Burnham pledges legislation to ease non-compete restrictions
The British prime minister has not committed to a ban, with the scope of the proposed changes still to be announced.
British Prime Minister Andy Burnham said on 9 October 2026 that he would introduce legislation to loosen restrictions imposed by non-compete clauses in employment contracts. Speaking at a government-backed innovation summit in Manchester, he did not pledge to abolish the clauses entirely.
Burnham said his aim was to prevent the clauses from obstructing recruitment by promising start-ups and firms seeking to expand. Details of how far the changes would go are due to be set out before legislation is introduced.
Work on possible changes began in 2025 under his predecessor, Keir Starmer. Options included an outright ban, restricting the clauses to employees whose pay exceeded a specified threshold, or shortening the period for which they apply.
The commitment follows lobbying on both sides of the debate. British technology start-ups argue that the restrictions hamper economic growth. City firms and industry organisations, including TheCityUK and the Managed Funds Association, oppose any changes.
