Labour Government Archives - WA Communications

From roadmap to reality, unpacking the UK’s National Payments Vision

A UK national payments vision has been long in the making. Since the (now abolished) Payments Council set out its initial National Payments Roadmap back in 2013, regulators, policymakers and industry have pushed for progress on making the UK a global leader in payments. Since then, a series of developments – including the establishment of the Payment Systems Regulator (PSR), the Payment Strategy Forum and latterly the Garner Future of Payments Review – have marked the slow march towards a clear, north star direction for the UK payments ecosystem.

The recently released National Payments Vision policy paper therefore marks a landmark move, setting out the new Labour Government’s ambition for the sector and pegging progress to its number one mission: economic growth.

Whilst this is welcome progress for policy makers and industry alike, the Vision sets out a number of further developments needed to fully drive momentum and swift progress on key actions – from regulatory reform to cross-sector collaboration – is needed to head off any risk that the UK falls behind international competition.

This long read sets out the ambitions of the Vision, the key reforms it proposes to take forward, and what these mean for the sector as the next phase of work to make the UK a global leader in payments commences.

Labour’s National Payments Vision: what it sets out to achieve

The Labour Government has been clear – both pre-and-post election – that the UK’s financial services sector has a significant role to play in achieving its mission with a particular focus on how, as a sector, it can support growth, innovation and global competitiveness. The party has set out an ambitious plan for this “crown jewel” sector which, at its heart, is underpinned by a drive towards a less burdensome regulatory landscape and firm evidence of consumer outcomes.

Taken alongside the Garner Review commissioned by the previous government in 2023, which identified lack of investment, burdensome regulation and pace of development as barriers to unlock, the National Payments Vision therefore contains few surprises.

Broadly, the Government’s Vision ambitions can be distilled into four key areas:

1. A clear regulatory framework for the payments sector: In line with calls from industry that the regulatory burden on payments firms needs to be addressed and modernised – and the Labour Government’s own commitment to revisit the regulatory landscape in their Financing Growth manifesto last year – the Vision advocates for a regulatory environment that is clear, predictable, proportionate and, critically, coordinated across the multitude of regulators overseeing the sector.
2. Building a resilient and innovative infrastructure: Recognising the need for significant investment in the UK’s retail payments infrastructure, and with one eye on how to embed emerging payments methodologies such as Account to Account in the UK ecosystem, the Vision calls for an agile and flexible approach to upgrades to the Faster Payments System.
3. Increasing competition and innovation: Key to the Vision is an ambition to expand and diversify the UK’s payments ecosystem, with consumer and business choice front and centre in the aim to drive innovation and increase competition in the market, both domestically and globally. To drive competition, the Vision emphasises the need for the UK to be a global leader in payments innovation, rooted in clear regulatory parameters, benefit to all users and reflective of increasingly diverse consumer and business needs.
4. Putting consumer protection front and centre: Reflecting the Labour Government’s inherent interest in consumer protection, the Vision highlights the critical importance of both payments system integrity and protections for users. This is particularly key for cross-border payments and international regulatory operability, where the Government is keen to walk the line on global leadership without compromising consumer protection or financial stability

Key regulatory and policy changes being proposed

To support this ambitious vision, it sets out a series of proposed reforms and key next steps which will dominate the Government’s work in this area for the next few years.

Regulatory frameworks and oversight

Enhanced coordination between the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) to avoid regulatory overlap and streamline processes, building on the Memorandum of Understanding framework already in place.
The FCA is designated as the sole regulator for Open Banking, streamlining oversight and fostering innovation in account-to-account payments, with the Joint Regulatory Oversight Committee (JROC) to be wound down at the earliest opportunity.
The FCA and the PSR are tasked with improving coordination to address regulatory congestion, ensuring a more cohesive approach to payments regulation.

Infrastructure upgrades

Comprehensive upgrades to the UK’s Faster Payments System (FPS) to improve resilience, functionality, and scalability.

Emphasis on integrating distributed ledger technologies (DLT) and ISO 20022 messaging standards for better interoperability and efficiency.
Establishment of a new Payments Vision Delivery Committee to oversee infrastructure modernization and evaluate long-term infrastructure needs. The Committee will work with the Bank of England (BoE) and the PSR to:
- - clarify upgrades to FPS and assess longer-term requirements
  - consider appropriate funding and governance arrangements needed to deliver this (including proposals to reform Pay.UK)

Innovation & competition

Encouraging innovation within a clear regulatory framework to ensure new payment solutions cater to diverse consumer and business needs.
Adoption of digital ID framework being introduced under the Data (use and access) Bill across the financial services sector once established.
The development of seamless account-to-account payment methods, providing consumers and businesses with more choices and fostering competition among payment service providers
Continuation of the BoE work to establish a Central Band Digital Currency, with primary legislation promised at the point of establishment.
Policies to facilitate the adoption of cutting-edge technologies, such as programmable payments and real-time settlements.
Incentivising private investment in payment services to maintain a competitive and dynamic ecosystem.

Strengthened consumer protection

Measures to enhance fraud prevention, including improved data sharing among financial institutions and the implementation of robust consumer protection standards.
Measures to improve cross-border payments without compromising financial stability or user protections.
Revocation of the payments authentication regulations relating to SCA in the Payment Services Regulations 2017, with the FCA responsible for incorporating successful implementation of Strong Customer Authentication (SCA) requirements in to the Handbook.
Further collaboration between the technology and communications sector and the financial services sector on addressing fraud upstream.

What comes next?

Key to the National Payments Vision is the establishment of a new Payments Vision Delivery Committee which will sit at the heart of future work on this issue.

Made up of representatives from HM Treasury, the FCA, PSR and BoE, the Committee will oversee implementation of the Vision and act as the central point of engagement for industry, with three core objectives:

Regulatory Alignment: Ensure that regulatory activities from the key regulators – the FCA, PSR and BoE – align with the objectives and ambitions of the National Payments Vision.
Coordination: Facilitate coordination among the BoE, the FCA, and the PSR to manage the overall regulatory burden and promote innovation.
Prioritisation: Prove a steer on prioritising initiatives across the payments landscape.

To build on this, the new Committee will establish a Vision Engagement Group to inform and support its work. Membership of this engagement group will be hard fought within the sector and the application process is not yet clear.

What does this all mean for the sector?

Within all the rhetoric, one thing is clear. The publication of the National Payments Vision represents an attempt by an incoming government to capitalise on a fast-moving and high potential sector of the market, and its clear ambition to be “a trusted, world leading payments ecosystem delivered on next generation technology, where consumers and businesses have a choice of payment methods to meet their needs”.

However, whilst it marks the conclusion of the latest round of consultation and industry input into what the UK can achieve in this space and what needs to be reformed, it also marks the start of a series of working groups, committees and further consultations which will shape the long-term policy and regulatory landscape for businesses in the payments sector.

There is much work left to do – from streamlining the regulatory rule book to shifting responsibility for key areas between the regulators themselves – and there are a number of areas to watch:

Key to the development of the National Payments Vision to date has been the extensive consultation with industry. The newly established Vision Engagement Group will be a central means for continuing this, but there is limited clarity on scale or membership at this stage. Involvement in the group will be hard-fought and firms should continue to seek other ways to engage and inform policy makers, on top of their regulatory engagement.
This Vision has drawn on significant input to reach its conclusions and represents several years of work. However, beyond the key bodies awarded responsibility for delivery there is still a knowledge gap amongst MPs and consumers over the potential of the sector and what it can deliver. Both groups will be fundamental advocates for pace of progress and any future reforms needed and making this complicated sector simpler will be key to communicating to them.
Lastly, progress on some of the ambitions set out here has been slow in the making – not least on Open Banking and the establishment of a digital pound. Proof of the Government’s commitment to this Vision and the potential it aims to unlock will be evidenced by action – something firms will be eagerly looking for as a new year commences and the legislative timetable starts to take shape.

What are your views on the National Payment Vision and what it means for the next phase of payments in the UK?

Get in touch with the WA Communications Financial and Professional Services team to discuss.

Tom Frackowiak, Senior Partner – tomfrackowiak@wacomms.co.uk

Natasha Egan-Sjodin, Senior Director – natashaegan-sjodin@wacomms.co.uk

Terri Garratt, Account Director – terrigarratt@Wacomms.co.uk

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Budget Analysis

Rachel Reeves has delivered the first Budget of this Labour Government to fix the UK’s foundations and deliver on the promise of change.

The Budget follows months of warnings from the Chancellor and Prime Minister that “difficult decisions” will be necessary to embrace the harsh light of fiscal reality and address the £22 billion black hole, which Rachel Reeves has claimed was left by the previous administration. While the Government’s intention is to protect ‘working people’, decisions such as the scrapping of winter fuel payments for millions of pensioners and increasing the cap on single bus fares means those on the lowest incomes will also be impacted.

Much of the pre-Budget debate has centered on the Government’s decision to increase Employer National Insurance Contributions (NICs). They have faced criticism as to whether this is an outright breach of their pre-election pledge not to increase taxes on working people, or a technical loophole that keeps them within the margins of the manifesto. Either way, this represents the Budget’s largest tax rise and will generate more than £20bn which the Chancellor hopes will go some way towards changing the outlook for public services.

Ultimately, the stakes for business are high in this Budget. Some commentators have argued the combination of increasing Employer NIC contributions and the National Living Wage, as well as legislative measures such as the Employment Rights Bill, could all stifle the pro-growth agenda just weeks after the landmark International Investment Summit. Criticism has been levied at Government from a range of industries who warn these measures will squeeze smaller and medium-sized businesses and result in fewer jobs at a time when Government is striving to dramatically increase economic participation.

The changes announced today will raise taxes by £40 billion. Reeves’ central message to business is to pick up the bill now in return for a steadier operating environment in the long-term.

To find out more about what today’s announcements mean for your sector, and how your organisation can shape the discussion, get in touch at contact@wacomms.co.uk.

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Fiscal frameworks and macro-politics – the insider view on delivering a budget

WA’s Senior Advisors draw on their experience at the heart of Whitehall — reflecting perspectives as a special adviser in the Treasury and Department of Health, and senior Treasury civil servant, and Permanent Secretary in the Department for Business, and Department for Transport.

Sir Philip Rutnam, Chair of WA’s Advisory Board and former Whitehall Permanent Secretary

Budgets always matter. The British state raises and spends £1.2 trillion a year – £7 million just in the time it takes you to read this blog – so the way it does that affects everyone. But the Budget on Wednesday matters even more: it’s a once in ten or twenty years event, the first Budget at the start of a new Government. Here are five things I’ll be looking for to make sense of what happens on Wednesday.

First, is the overall narrative linked to a convincing plan? Expect a narrative all about boosting growth – the only practical way for us to get out of the spiral of poor public services, low aspirations and high inequality. But will the narrative be matched by plans that have enough breadth and depth? And will those plans involve building the dull but necessary capability to deliver, not least local and regionally?

Second, can the Chancellor really manage the politics successfully? Budgets are fraught with political risk. And that’s not just true about the macro-politics of Manifesto promises. It’s also about little things and unintended consequences. Are her team sufficiently adept (and lucky) to spot accidents before they happen?

Third, what’s the message for public services? This Budget will only settle current spending for one year, though capital budgets may go out further. We know some budgets are going to be protected – expect health to be top of the list, followed by schools. But public services everywhere are under pressure and in some places that’s acute: local government, criminal justice, defence. Who’s going to be disappointed? Look out for Cabinet Ministers keeping a low profile.

Fourth, and linked to that, what’s the message on reform? Labour needs a serious plan for how it will get more out for whatever it puts in – a mix of technology, transformation, and leadership. Any sign of that?

And finally, what about the framework for all of this? The Chancellor has said that she’s changing the fiscal rules, conveniently making room for more borrowing and investment? But on average the fiscal rules change every 2½ years. Is there any reason to suppose these rules will last longer? And what is she doing to change the Treasury, to give it as much focus on growth as on finance?

Jennifer Gerber, Senior Political Advisor and former Labour Treasury Special Advisor

After 14 long years and three intense months of speculation, Labour’s first budget in government is just 2 days away. Yet to many it may feel like it’s been a neverending budget debate since July 4^th, when Labour won with a mandate for change.

Many ministers and advisers across government, with hindsight, now regret the decision to delay the budget for so long, nor introduce a emergency budget in the summer. What this meant was months of speculation about what the Chancellor would do, and the limited ability for Cabinet Ministers to say too much about some of their plans, without knowing what their financial settlement or the Government’s spending priorities will be.

Of course there were good reasons to hold off and take stock of public finances, not least because both the PM and Chancellor wanted to make clear where the blame lies when it came to the perilous state of the public purse. With public services on their knees, prisons full to bursting and local councils going bust, the new government needed time to explain to the public how challenging things will be. However, the political doom and gloom may have felt too much to those in the Labour party who wanted to also show that, as the song says, things can only get better.

How to communicate how bad things are without scaring people or scuppering growth has been a hard balancing act, and many around the Chancellor and PM will want the budget to clarify Labour’s vision for government and what it hopes to achieve. This is hard when the endless chat has been focused on which taxes will and won’t be fiddled with (CGT, IHT etc) and what is the exact definition of ‘working people’.

With all eyes on parliament this Wednesday, the PM and Chancellor hope that with financial clarity the government can move on from the budget speculation noise and show the public how things are really changing. Though if Health and Education will be the only vaguely happy departments, the noise really doesn’t go away, it just changes!

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How Darzi’s dossier of desolation sets the stage for a rebooted, more radical Long Term NHS Plan

The NHS is on ‘life support’ and needs ‘major surgery’. Years of increasing demand, systemic strain, and the challenge of the COVID-19 pandemic mean it is now time to ‘reform or die’.

With rising public dissatisfaction, mounting waiting lists, and a system struggling to keep up with demand, Lord Darzi’s report is stunning in its frankness and makes for sobering reading. And while it’s the latest in Labour’s ‘look what we’ve inherited’ strategy, the report paints a picture that health leaders recognise.

David Thorne, WA Health Adviser and Director of Transformation at Well Up North PCN said ‘It’s a true portrait of the difficulties faced from top to bottom in the NHS. But with this comes the chance to reform, transform and drive change.’

Labour intends to use the report as a platform to set out how it needs two terms in Government and a long-term mindset to overcome these major problems – doing so will need them to balance urgent against important, acute vs critical, and public demand vs operational and budgetary realities – Labour knows this, which is why the Darzi report is the precursor to a new ten-year plan being crafted by Professor Paul Corrigan, that will set out the how.

Another one? Aren’t we five years into an existing NHS Long-Term Plan? One that was rich with thought and requested by the NHS itself?

With some of the critical challenges sounding familiar, the temptation when the 10 year plan consultation eventually opens might be to dig out submissions from 2019!

That would be a mistake. Darzi’s report does not make policy recommendations (as set out in its terms of reference) but if we take it to be the bedrock for the ten-year plan, Darzi has set the stage to go beyond the LTP, pushing for what may need radical and transformative reforms.

How could this rebooted plan differ, and what new directions will it take to secure the future of the NHS?

What’s familiar?

Several key themes remain consistent but have evolved from 2019, particularly on prevention, digital transformation and workforce.

1. Prevention and health inequalities: Both the LTP and Darzi stress the importance of prevention. Wes Streeting has also aligned to this heavily. But while the LTP focused primarily on reducing the burden of preventable diseases like smoking, obesity, and alcohol-related harm, Darzi has gone beyond and expanded the focus more heavily on issues including social determinants of health, recognising the impact of factors such as housing, income, and education on public health. The aim is to tackle these issues in a more integrated and community-focused way.

2. Digital transformation: Darzi has placed a major emphasis on AI, data integration, and enhanced digital tools to improve efficiency and patient care. The goal is to create a more digitally-enabled NHS that can respond to the needs of modern healthcare.

3. Workforce expansion and retention: The workforce crisis in the NHS remains one of its most pressing problems. While the LTP set out to increase the number of healthcare professionals, particularly in nursing and primary care, the Darzi report has also included issues such as re-engaging staff and tackling issues of burnout and low morale. Retaining existing staff and improving working conditions will be central to Labour’s long-term strategy to restore the NHS workforce, with an early win in the bag via the Junior Doctor’s pay settlement.

A more radical shift: What does Darzi tee up?

Lord Darzi has created a platform for a much more radical and ambitious vision for the future.

1. System reorganisation: One of the most significant changes will need to be in the way the NHS is structured and managed.

The priority will be to shift more services out of hospitals and into community settings, with the intention to deliver care more efficiently and at a lower cost.

Working within the current legislative architecture (which Darzi welcomes as a restoration of sanity), this may mean expanding integrated care systems (and giving local health bodies more decision-making power by ‘reinvigorating the framework of national standards, financial incentives and earned autonomy as part of a mutually reinforcing approach…’

2. Financial reforms: The Darzi Report highlights the imbalance in spending, with too much of the NHS budget going towards hospital care and not enough being directed towards primary and community care. The report sets the need for a reallocation of resources. The new plan will therefore need to restructure NHS funding, ensuring that resources are used more effectively and in line with patient needs.

3. Rebuilding and maintaining resilience: The COVID-19 pandemic exposed significant vulnerabilities in the NHS (see the COVID-19 Enquiries’ findings) particularly in its ability to manage public health crises while continuing routine care. Lord Darzi has therefore focused heavily on resilience and preparedness, and the need to ensure the NHS is better equipped to handle future emergencies. There is now a greater understanding of how the UK fits into a global health system, supply chains and onshore capabilities.

4. A focus on disease: After the focus on major conditions seen in the last few years, there is a notable focus on diseases. Again, many priorities remain from the LTP, but others appear to be scaled back or integrated into broader health strategies. Given Streeting’s noted prioritisation of cancer, mental health (particularly in children) and cardiovascular disease, these are unsurprisingly front and foremost of the report. Interestingly, diabetes looks set to be included within CVD and dementia care (a prominent part of the LTP) has dropped out.

The path forward: Rebooting the NHS

Darzi’s stark analysis means the upcoming ten year plan cannot just be another strategy in a long line of NHS strategies – the scathing diagnosis will springboard an opportunity for radical thinking.

While the 2019 Long Term Plan laid the groundwork for important improvements, the Darzi Report makes it clear that more radical reforms are needed to meet the evolving challenges in the coming decade.

The shift towards community-based care, better resource allocation, and pandemic preparedness signals a bold new direction for the NHS.

In Lord Darzi’s words, “The NHS is in critical condition, but its vital signs are strong”. The new plan offers a real opportunity to rebuild the NHS into a more resilient, patient-centred, and forward-thinking institution. However, as the report acknowledges, it will take time to fully implement these changes.

The challenge now lies in the effective execution of these reforms to ensure that the NHS not only survives but thrives in the years ahead.

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General Election Briefing

The political landscape is transformed, but a volatile electorate creates pressures for both Labour and the Conservatives.

While the overall result this morning was no surprise, Labour’s landslide victory was just one of several electoral stories – from the return of the Liberal Democrats as Parliament’s third largest party, the rise of Reform, and the success of left-wing independents, to the SNP’s deepening crisis, and a historic low for the Conservative Party.

Keir Starmer will set to work immediately – with key moments over the next 100 days including Cabinet announcements, NATO and European Political Community summits, the King’s Speech and an Autumn Budget.

Our analysis examines some of the key trends from today’s election results, how these will shape Keir Starmer’s government and the new Parliament that reconvenes on Tuesday, and what this means for business.

General Election Briefing

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How will the Whitehall machine deliver a Mission-Based government?

“We need government to be more agile, empowering, and catalytic….
“The old model of departments working in silos … needs to be replaced with a genuine joined-up approach. This means collective agreement on the government’s objectives and how best to deploy time, attention and resources to meet them.
“This could mean new structures and ways of working to facilitate collaboration, including replacing some of the cabinet committees with new delivery focused cross-cutting mission boards.”

5 Missions for a Better Britain: A Mission Government to End ‘Sticking Plaster’ Politics

A change in government is very often accompanied by a new vision for how government as a whole should be organised – from the role of No.10 and the powers of the Treasury and the Cabinet Office; to the responsibilities of the central government departments and their agencies; to the use of cross-government ‘Czars’, boards and committees.

Some of these shifts are formally called ‘machinery of government’ changes because they involve moving responsibility for functions from one department to another, or creating whole new departments devoted to goals like Net Zero. Others are changes in the balance between central and local, or in the style and way of doing things.

So what changes can we expect to see under a new Labour government? And how could Government really reflect Starmer’s ‘Mission’-focused government – supporting his cross-cutting ambitions around economic-growth, clean energy, an improved NHS, safer streets, and breaking down the barriers to opportunity?

In Starmer’s own words – these issues are long-term, complex challenges “that need lots of actors and agencies working to achieve them”. And of course those actors aren’t just central government policy-makers but also “business working with unions. The private sector working with the public sector. And partnership between national and local government.”

These are also issues where Labour must deliver on the promise of Change, but with little headroom for further funding increases – meaning good leadership, driving operational improvements and marginal gains become ever more important.

So, under a newly elected Labour government, it’s more likely we’ll see an emphasis on making existing structures more accountable, with stronger central control and cross-government coordination, rather than a wholesale shake-up of the structure of Whitehall.

This evolution rather than revolution also reflects the instincts of Keir’s senior team – an inner-circle heavily populated with experienced public servants. Starting with Keir himself:

As Director of Public Prosecutions, Starmer is one of the few recent Prime Ministers to have personal experience at the very top of the civil service, working regularly with senior civil servants across Whitehall. He used to attend the weekly meetings of Permanent Secretaries when he was DPP.
His Chief of Staff, Sue Gray, has spent decades at the Cabinet Office, right at the heart of the official machine, responsible for sensitive topics like public appointments, Ministerial conduct and government ethics. She also knows a lot about devolution and the Union having worked as the Second Permanent Secretary at the Department for Levelling Up, Housing and Communities and having run the Department of Finance in Northern Ireland’s devolved executive.
Or former Cabinet Office Minister and the Political Director of Tony Blair’s delivery unit, Pat McFadden – who is likely to return to the department to drive delivery of Labour’s missions. There are also several former senior Ministers in the Shadow Cabinet who bring experience of the day-to-day operation of government.

These are long-term Whitehall operators, who will have a clear view on how to control the levers of power effectively, based on personal experience – they are not Steve Hilton or Dominic Cummings figures who join government to implement ‘blue-sky’ thinking.

Here are some thoughts about what might happen in five areas:

Central Government Departments and Agencies

Sue Gray in particular will have the instinct of most senior civil servants that major changes in the number or role of departments is a distraction, and Keir Starmer will be familiar with the disruption that big organisational changes caused for other parts of government working on the affected policy areas.

Instead the focus will be on making the departments that exist more effective, and holding the Secretaries of State in charge of them to account more effectively.

In some cases this may mean central departments becoming more powerful relative to agencies – expect for example the Department of Health and Social Care to reassert some control and powers from NHS England.

The weakest departments organisationally, and probably the ones most vulnerable to change, are those that Rishi Sunak created recently in the business area – Business & Trade, and Science, Innovation & Technology.

If there are any major machinery of government changes these will be announced when Cabinet Ministers are appointed. Key decisions on cabinet committees will be made shortly afterwards – including their terms of reference, chairs and membership.

Inevitably every Prime Minister gets to a point where a refresh or a reset is required, so notwithstanding the above, machinery of government changes will not have gone away entirely under Labour: expect the option to be on the cards either later in the Parliament or the next Parliament.

HM Treasury:

We can expect an early announcement by Rachel Reeves about increasing the department’s organisational firepower – perhaps beefing up the Growth Unit function, which may also include the appointment of a new Second Permanent Secretary, a figure who can engage credibly with business (currently a big gap, especially in a department to be tasked with a greater role in galvanising business investment).

An early announcement about strengthening the role of the OBR could also be followed up by legislation, probably in the first session.

No10 / Cabinet Office:

It is less clear what Starmer and Gray will do with No10 and the Cabinet Office.

The Cabinet Office is the least loved bit of Whitehall, a sprawling mix of central functions for the Civil Service and higher-end policy coordination across domestic and security policy. No10 by contrast is a small operation which takes a different shape in each administration reflecting the personal preferences and style of the Prime Minister.

In general I’d expect Sue Gray to take a fairly traditional view of what a high-performing centre of government should look like. The shadow of Jeremy Heywood still hangs heavily over Whitehall in this way of thinking – one brilliant individual who could combine superb instincts for policy and political handling with strengths in organisational leadership and transformational drive. The trouble is that individuals like Jeremy are few and far between, and absent this kind of hero the traditional version of the centre is a long way from the strategy-setting motor of government that the modern state needs.

Expect a lot more speculation about who might succeed the current Cabinet Secretary, Simon Case, if he does move on early in 2025. A lot of this has so far been linked to the rumoured return to government of Sir Oliver Robbins – who stepped into the public limelight as Theresa May’s chief Brexit negotiator, but also held jobs in Home Office and Treasury. Other names may however also enter the frame.

Mission Boards

The much heralded centre-pieces of the new government’s administrative reforms, these will be intended to fill that central strategy-setting gap.

They may also be an important forum to draw together the range of partners, beyond central government, that ‘5 Missions for a Better Britain’ identifies as key to delivering change – for example opportunities for the private sector and corporate expertise to contribute have been heavily floated in the media, and it would be no surprise to see union and local government representation.

But the boards will struggle to be effective unless:

The objectives are tightly defined, have some realism and are not too rhetorical

One senior Minister is put in charge of each and has the power and authority to direct other colleagues/departments (as that Minister cannot always be the PM or Chancellor, you immediately get into issues of ranking / personality / rivalry)

Preferably there is one senior official responsible for driving the work of the board, with a supporting team and with budgets to match

The risk is that these boards will turn into coordinating and overseeing committees (as with many before). And that is ultimately an issue of political direction from the top, not administrative process. If they are to have real power they need to have the status of Cabinet Committees: it is possible to have non-Ministers attending Cabinet Committees but not as full members.

Local Devolution

While not a ‘Machinery of Government’ change per se, attention should also be drawn to Labour’s plans for further local devolution – where Metro Mayors are an influential part of Labour’s eco-system, and a “full fat approach to devolution” promises a further transfer of policy-making and spending powers on transport, skills, energy, and planning.

If really effective this could be the most important long-term change of all.

Watch out though for whether the Treasury concedes any ability to raise revenue – or just to spend allocations from the centre.

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A clear cultural shift: how Labour will govern differently

Attention is now focused on what a new Labour government – but beyond policy differences, how will the party govern differently?

Firstly, it is worth remembering that Labour have been out of power for 14 long years. This means that many of the MPs who will be stepping into departments as newly minted Ministers will have little to no ministerial experience. And this is the same for the army of SpAds who will be assuming their new roles.

In terms of understanding quite how different Labour will be, it helps to start by looking at the people – there is every likelihood that Labour will have a huge number of new MPs, some in seats that they very much didn’t expect to win. Labour PPCs are full of those with backgrounds in local government, trades unions and charities. Many are campaigners, some are public affairs professionals, and quite a few may well be elected with relatively shallow majorities in a number of diverse regions. This will leave Keir with a large and new PLP to manage, and though it is a nice problem to have, it can pose it’s own complications with a number of competing priorities and egos.

In terms of the practicalities of government, it is worth reflecting that Keir respects process and institutions, as does Sue Grey his Chief of Staff, (Sir Philip Rutnam, Chair of WA’s Advisory Board and former Permanent Secretary explores how this will shape the structure of Whitehall more broadly here), so unlike previous PMs there will not be the informal sofa government we have seen previously.

There will also be a clear cultural shift – Labour is more than a political party, it’s a movement. And it has an eco-system very different to the Tories with a far stronger and robust internal democracy which includes the trades unions, who are an integral part of the Labour movement.

The new Cabinet themselves will come from a far more diverse range of backgrounds than we have seen under the Tories. Some grew up in poverty and many have working-class backgrounds which they’ve spoken about, especially in framing their political outlook. The times when Eton dominated the Cabinet table will be long gone and the tone and language of the new government will reflect this.

Also important is an appreciation of how laser focused Labour will be on their key missions and policies. Keir has been keen to consistently stress that economic growth is their absolute priority, so companies and organisations will want to look at how they can be part of this narrative.

There will be very little bandwidth for anything other than their stated priorities as well as very limited fiscal headroom. For those looking to engage with Labour, the challenge will be to use smart and nuanced ways in, where policy aligns with priorities, and companies can demonstrate their role in both growing the economy and shaping the fairer society Labour want to see.

There will be opportunities for engagement, whether it is through the various new consultations that will be launched, working groups or roundtables, as well as keeping up to date with the left of centre think tanks who in the last Labour government provided a lot of policy kite flying.

Questions around the structures of government and how Keir will manage No 10, not least the challenge of getting departments working together on cross departmental policy priorities, are not clear yet. What is clear is that HMT will be central to all key decisions as they focus their attention on budget and spending review in addition to making their growth plans a reality.

And this is forgetting what happens to all the best laid plans of governments…events! Unforeseen issues and events impact greatly on a PMs time and energy – whether this is pressing foreign policy issues or domestic crisies that can come out of nowhere, the pace and relentlessness of government is a different level to opposition.

Labour will be hoping that a predicted Tory leadership race, with all the ‘fun’ that entails, will give them some time and space before the media inevitably want a new story and turn their focus onto Labour.

Still, even on its worst days, being in government is a million times better than being in opposition, and after 14 years out in the cold, Labour will not be complacent about finally having the ability to do, rather than just say.

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Posts Tagged ‘Labour Government’

From roadmap to reality, unpacking the UK’s National Payments Vision

Labour’s National Payments Vision: what it sets out to achieve

Key regulatory and policy changes being proposed

What comes next?

What does this all mean for the sector?

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