UK PM Burnham to Legislate Non-Compete Ban for Startups

UK Prime Minister Andy Burnham used a speech at the Innovation Nation Summit in Manchester to pledge legislation that would strip non-compete clauses out of employment contracts for startups and scaling firms, Tech.eu reported. He likened the move to "the Bosman ruling for the innovation sector."

"I can confirm that we will legislate to make sure that non-compete clauses will no longer be a barrier to hiring for our most promising startups and scaling firms," Burnham said. He added that "some businesses have gone too far in their use of restrictive practices such as non-compete clauses," according to Personnel Today.

The pledge follows a campaign by UK tech firms, among them ElevenLabs and Synthesia, coordinated through the Startup Coalition. Its chief executive Dom Hallas called the announcement "a huge move" and said "mobile talent means startups can build." Enforcement had been climbing in parallel: High Court claims to enforce non-competes rose 43% in the first nine months of 2025, Personnel Today reported, citing law firm Kingsley Napley.

Detail is thin until the Budget on 28 October, which Burnham said will open a consultation on a wider set of restrictive practices including gardening leave, with a timetable for legislation in the months after. The announcement sits inside a dense policy run for us, with 286 AI-regulation stories tracked in the last 90 days.