As the UK prepares for a transition in leadership with Keir Starmer stepping down, the Labour Party faces a critical juncture regarding its long-term economic strategy. According to Mariana Mazzucato, professor in the economics of innovation and public value at University College London, the focus for the incoming administration—expected to be led by Andy Burnham—must be a return to the structural “mission-oriented” governance that defined the party’s 2024 platform.
The Erosion of the Mission Agenda
Labour’s 2024 landslide victory was predicated on five national missions designed to address deep-seated structural issues, ranging from child poverty to the transition to clean energy. However, Mazzucato argues that these goals were increasingly relegated to a communications framework rather than serving as the central architecture of governance. Notably, the Mission Delivery Unit, initially tasked with cross-departmental coordination, was dissolved in autumn 2025 in favor of a narrower, short-term focus on immediate priorities such as NHS waiting lists and border security.
Furthermore, analysts point to a fragmentation in industrial strategy, which has reverted to identifying specific “high growth” sectors—a shift Mazzucato describes as a “pick-winners” approach that contradicts the broader logic of mission-oriented policy. The government also encountered criticism for framing “growth” as a mission in itself, whereas proponents of the mission-oriented model argue that growth should be viewed as an outcome of successfully executed, targeted public and private investments.
Institutional Progress and Unfinished Business
Despite these challenges, some structural reforms have been enacted. Notable progress includes:
- Fiscal Rule Reform: Chancellor Rachel Reeves updated fiscal rules to emphasize public sector net worth—considering what the state owns rather than solely what it owes—to better reflect long-term fiscal sustainability.
- Clean Energy Advances: The focus on the Clean Power mission has seen measurable gains, with low-carbon sources accounting for 73.3% of energy generation in 2025, compared to 60.3% in 2023.
- New Institutions: The establishment of bodies such as the National Wealth Fund and Great British Energy provides the foundational infrastructure necessary for state-led investment.
A Roadmap for Policy Realignment
As the government moves into a new phase, a report from the UCL Institute for Innovation and Public Purpose outlines five essential shifts to revitalize mission delivery:
- Whole-of-Government Coordination: Re-establishing a central authority with the power to align the Treasury, Cabinet Office, and No 10 behind shared economic challenges rather than peripheral objectives.
- Fiscal Framework Reform: Extending the fiscal horizon from three to 10 years to better capture the long-term returns of public investment. Analysis suggests that a 1% increase in public investment can generate an 8.7% return to the wider economy over a decade.
- Strategic Procurement and Finance: Leveraging the UK’s £341bn annual public procurement budget to drive outcomes rather than merely seeking the lowest cost, and empowering public finance institutions to act as investors of first resort.
- Rebuilding State Capacity: Reducing reliance on external consultancy in favor of developing internal civil service expertise to negotiate with business and shape investment conditions.
- Inclusive Governance: Ensuring that missions are co-created with citizens, workers, and trade unions to foster resilience and democratic legitimacy.
Ultimately, the challenge for the incoming administration will be to move beyond a “business-friendly” narrative toward a more symbiotic partnership with the private sector. By holding business accountable for producing value rather than extracting it, the government aims to create a more robust governance framework that delivers both immediate relief and sustainable, long-term economic growth.
