During a speech in Manchester, the PM Andy Burnham has signalled a shake-up of employment law to curb the use of non-compete clauses in contracts that prevent workers from joining rival firms or setting up their own businesses after leaving a job.

Speaking at the Innovation Nation Summit, Burnham said: ‘I know we need our innovators to move freely between companies and start their own without constraint. I believe some businesses have gone too far in their use of restrictive practices, such as non-compete clauses’.

Non-compete clauses have been a contentious issue for years, with successive governments exploring whether their use should be restricted.