A new Labour Government, focused on delivery rather than rhetoric
Keir Starmer at Downing Street after Labour landslide
Last Thursday, the UK elected The Labour Party to form its next Government. After 14 years of Conservative rule, the country did indeed opt for change and gave the party a huge landslide win.
Whatever commentators think about the depth of the vote, this is a pointless argument for now. Given the size of the majority, the Government has the ability to focus on delivering change and creating an environment for growth for everyone. That said, to deliver this, it will need to redesign how the Government works, something that I commend.
On Friday and over the weekend, I watched the various ministerial appointments that incoming Prime Minister Keir Starmer made. This, and after reading the party's election manifesto when it was launched a month ago, has given me a view of the changes and the opportunities that lay ahead. Here are my takes.
Modernising Government
Firstly, this Government is focused on modernising its operations so that it can deliver the growth that has eluded the UK since the 2008-2009 financial crisis and, more recently, also since Brexit.
In the manifesto, Labour has outlined how it will use and establish a mission-driven approach in government, as championed by Mariana Mazzucato. In essence, it is looking to modernise how Government works and delivers, not just for the short term but, more importantly, for the medium to long term.
Looking at the appointments of Sir Patrick Vallance and James Timpson, you see a positive picture that we are moving away from the Tufton-street Conservative era to an environment where the Civil Service is supported by experts and specialists in business, science, and, I suspect, other key areas.
To incorporate this knowledge, we are likely to see the creation of Mission Delivery Boards, which will report to Keir Starmer, and/or a strategic policy unit, which will be charged with implementing strategic decisions needed to meet the five key missions outlined in Labour's manifesto.
Having former senior civil servant Sue Gray as Starmer's Chief of Staff should give you an idea of the transformation that will be taking place and the external support that is likely to be introduced.
Each of the Mission Boards will be staffed by experts in specific areas. To a certain extent, this approach feels like the introduction of an entrepreneurial delivery structure, which is needed. Each Board, as I understand, will be departmentally cross-cutting, ensuring that efficiency and collaboration are central given how that Silos, cross-government and internal in many departments have for too long hampered delivery.
This working approach does remind me of my time at the Department for Business International Trade and the Agile approach we took to designing and delivering digital services. We worked and engaged stakeholders across the public and private sectors to deliver.
A key area of reform, will be respect and an improvement in the culture amongst the civil service, who deliver so much nationally and locally.
Strategic Focus
The Labour Party has outlined five key missions that it will focus on in Government, these being:
Secure the highest sustained growth in the G7
Make Britain a clean energy superpower
Build an NHS fit for the future
Make Britain’s streets safe
Break down the barriers to opportunity at every stage.
As I mentioned before, to meet these missions, the government will introduce Mission Boards staffed with experts, which will be departmentally cross-cutting. Collaboration will be central.
Of the five missions, the first two relate to growth and how this and productivity can be achieved. Again, this will require departments and experts to work collaboratively. It will need a mix of policy, tax, trade, and engagement actions that can help businesses grow, both in the UK and internationally.
As I've mentioned before, the UK ranked 4th in the World Intellectual Property Organization – WIPO World Innovation Index. Yet, according to The World Bank we are 12th in knowledge diffusion and 34th in knowledge absorption, positions that have been getting worse, especially compared to the US, Japan, Germany, Singapore (1st in Knowledge absorption) and China.
Compared to other nations, the number of intellectual property (IP) that we register is low, which is why we need to create an ecosystem that helps businesses grow, not just in the UK but overseas.
As I've mentioned before, one key approach is to support businesses to establish corporate venture capital firms through which they can invest in the innovation that the UK excels at. We also need to understand that innovation and growth gained from innovation have an element of risk associated, which is why we need to establish a different culture to ensure that risk does not limit the innovation that can fuel our economy and the UK's position in the world. Just compare how risk is perceived in the US and other emerging markets vs the UK. Risk and failure are a right of passage from what people learn.
Our financial services, technology, pharmaceutical and biotechnology, advanced manufacturing and engineering, education, creative services and professional services are global leaders and include companies with a global footprint.
Looking at the technology sector alone, In the last financial year, the UK's technology sector continued to demonstrate significant economic contributions and resilience. The sector is valued at approximately £200 billion annually, reflecting its critical role in driving the UK economy. The potential of deep-tech, space-tech and quantum can support the UK as a science and technology superpower. This while UK's creative services sector contributed £124.6 billion in Gross Value Added (GVA) in 2022/23, representing 5.7% of the UK's total GVA. This sector includes diverse areas such as film, TV, music, advertising, and digital services, which collectively experienced significant growth. It is also a key part of our soft power that sells the UK as a destination for inward investment.
The UK needs to create growth so that it can secure additional revenue with which it can fund it's other internal focused but critical missions, such as it's national health service fit for purpose, security and education for all that delivers for future growth.
The UK's place in the world
As the world moves more towards a siloed environment - the US, China and the EU, what we see is the UK as an outlier, but one, which, with a new government can position itself as a safe space for investment. Politics aside and the opportunities exist to deliver growth.
Its relationships with international trading blocs are likely to be reset after the last five to eight years. Businesses will welcome stability.
Our education and academic institutions, as well as our entrepreneurial environment, can support how the UK navigates the political situation that the world currently finds itself in.
Equally, in the age of AI and soon to come, quantum computing, the UK is already leading the way, not just in terms of technology and the innovation and transformation that this will be deliver, but also policy on how this is leveraged within the UK and internationally. At the same time, a new Industrial Strategy will be released, which will give businesses a much needed strategic direction.
Engaging with international stakeholders can help the UK and the world navigate these challenging times.
In summary, what we now see is a transformation where experts and specialists can support not just with government is delivered, but how the UK can be transformed for it's people.
Let’s get to work!
