‘How Labour can reconcile its New Deal with backing business’

If elected on 4 July Labour faces a formidable challenge: How can it create a fairer Britain while fostering a thriving business environment? This question underpins the party’s ambitious economic strategy, and the answer lies in a revolutionary approach to governance – mission boards.

These mission boards represent a pivotal strategy in Labour’s vision for the future. If Labour wins the general election, they will be designed to facilitate cross-departmental collaboration, ensure key pledges are met, and engage businesses as active partners in national development.

As the Labour Manifesto states, “To rebuild Britain, we need to change how Britain is governed.” Underscoring their importance, Keir Starmer himself has committed to chairing these boards.

For day-to-day coordination and accountability, several options exist, including political leadership by a senior cabinet minister, and the appointment of an external specialist to oversee a taskforce or specific mission elements.

Establishing a vision

Inspired by economist Mariana Mazzucato’s concept of ‘mission-led’ government, these boards aim to address long-standing issues through innovative approaches.

Implemented well, they can broaden policy development beyond single government departments and foster collaboration between government, business, and civil society. To succeed, the boards will require strong accountability frameworks, cross-departmental collaboration, engagement with local and devolved governments, direct public involvement, and the integration of business leaders, trade unions, and external experts.

The mission boards’ primary task will be to bridge the gap between employment reform and business support.

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They should establish a unified vision through dialogue, balance worker protections with business incentives, develop regional strategies for wage-boosting growth, leverage technology for productivity and job quality, and promote sustainable and inclusive economic growth.

Labour is committed to introduce legislation within 100 days implementing ‘Labour’s Plan to Make Work Pay’ and consult with businesses, workers, and civil society on how to put their plans into practice before legislation is passed. Mission boards could be a framework to shape this consultation: focussing on solving medium- and long-term challenges in partnership.

For example, looking at minimum wage, paired with temporary tax credits for small and medium-sized businesses, or the introduction of the right to request flexible working from day one, together with a scheme offering tax breaks to companies that demonstrate increased productivity after implementing flexible working policies.

Developing an approach

In developing this approach, Labour could draw valuable insights from the Dutch social dialogue model. The Dutch system features a Social and Economic Council (SER) that advises on policy, facilitates stakeholder agreements on societal issues, and focuses on the social and economic aspects of long term challenges.

Recognising that one-size-fits-all approaches are ineffective, mission boards will need to adopt a regional focus. They will work closely with metro mayors and local councils to develop region-specific initiatives that address unique economic landscapes and challenges.

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For instance, in regions with a strong manufacturing base, this might involve modernising facilities and upskilling workers. In tech hubs, the focus might be on expanding digital infrastructure and fostering startups.

Technology and innovation will play a crucial role in driving economic growth and improving working conditions. Mission boards should prioritise the integration of cutting-edge technologies, support research and development, and foster university-industry partnerships.

They should also promote the use of digital platforms for remote work, which can help businesses reduce costs while offering employees improved work-life balance.

Labour in government

Labour’s economic vision must be both environmentally conscious and socially inclusive. The mission boards will need to promote green technologies and sustainable practices, investing in green jobs and industries.

At the same time, they must design policies to support marginalised communities and bridge inequality gaps, fostering a more inclusive economy.

By leveraging mission boards effectively, Labour has the potential to create an economy that works for everyone. This approach can reconcile radical employment reforms with business support, foster collaboration across sectors, tailor strategies to regional needs, drive technological innovation, and promote sustainable and inclusive growth.

As Iain Anderson’s independent business review showed there is a real appetite from businesses to be part of an active partnership driving forward Labour’s Five Missions alongside government, civil society and unions. They want to see existing UK engagement structures reformed and ‘talking shops’ disbanded.

The path forward is clear but challenging. Through mission boards, Labour can develop policies creating a fairer, more prosperous Britain where both workers and businesses can thrive. It’s an ambitious vision, but one that holds the promise of transformative change for the UK’s economy and society.

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