Those who work in Westminster, Whitehall and the whole ‘ecosystem’ around them are breathing a collective sigh of relief as we reach the summer recess today, and the end of the first full year of the Parliamentary term.
The Labour government has faced no shortage of challenges over the past year. If Keir Starmer and his team were in any doubt before the election, they’re not now: governing is hard. Ministers, civil servants and special advisers frequently find themselves in firefighting mode, grappling with unpredictable economic and geopolitical headwinds, and managing problems beyond their control. Frustration is understandable: voters want change to happen faster, MPs can sometimes feel left out of key decisions, and businesses don’t always believe that the government is engaging with them enough.
But we can also see just how hard this government is working to overcome that frustration through delivery. In the last week alone, we’ve seen: a package of measures to boost the automotive industry through Drive35; the Chancellor’s Leeds Reforms to make the UK the number one destination for financial services by 2035; the new Life Sciences Sector Plan; the launch of 780 projects through the Infrastructure Pipeline and a swift consultation to cut electricity costs for energy-intensive industries.
This is an interventionist government. We’ve seen it in the support for the steel industry – protecting jobs and investing in a long-term future for British Steel in Scunthorpe, Tata Steel in Port Talbot, and Sheffield Forgemasters. We see it in the creation of Great British Energy and the National Wealth Fund, and in last October’s Investment Summit, with further regional summits to follow later this year.
The Department for Business and Trade (DBT) has re-established itself under Jonathan Reynolds’ leadership as the engine room of economic growth. The Modern Industrial Strategy and its eight sectoral plans, the Trade Strategy, the Infrastructure Strategy, trade deals with India and the US and the expansive package to reset our relationship with the EU all reflect a government focused on growth – backing high-wage, high-skilled jobs and the industries of the future.
Crucially, none of this has happened without business engagement. But that doesn’t mean there isn’t room for more.
First, the team: Ministers across DBT, the Treasury, the Department for Science Innovation and Technology and other business-facing departments are credible, speak the language of business, and are willing to listen. But we need to think harder about the capacity for and management of engagement: there aren’t enough hours in the week for every Secretary of State to meet every business leader who asks for a meeting. So requests can be better triaged – distinguishing between businesses that can deliver investment, those offering practical solutions on regulation, and those with insights on cross-cutting issues such as skills and planning. Civil servants can and should play a greater role here. At the same time, industry must think more strategically about when and where to push for engagement.
Second, the culture: Labour worked hard in opposition to build strong relationships with a whole range of different communities, including business. But inside government, there can still be a tendency to view industry with scepticism. Ministers, advisers and the civil service need to see business as a resource to draw on, not a vested interest to keep at arm’s length.
Finally, engagement needs to be more holistic. That means more collaboration with trade associations, sector groups and umbrella organisations that bring together companies with shared interests.
The Future Governance Forum (FGF) is stepping up in this respect. We gave serious thought to how the government’s relations with businesses and trade unions could be improved in our Mission Critical 02 report published last year. And, true to our values—thinking as much about the how of policy implementation as the what of policy development; thinking about all layers of central, regional and local government; collaborating across a broad ecosystem of partners—we have exciting plans ahead.
That’s why, alongside our role in the Growth and Reform Network of local and regional government leaders, and our recently announced Social Insights Panel, FGF has also established a Business Panel to bring together corporate leaders with policymakers and experts to explore solutions to some of the knottiest issues facing the country. That means challenges ranging from the Prime Minister’s ambition to “change the nature of governing itself”, to deploying AI across our public services to make them more effective and efficient. Those challenges also include unlocking public and private investment to rebuild our public realm, devolving the right powers to the right places and using procurement policy more wisely to benefit communities and businesses across the country.
The Business Panel met for the first time recently, where we were delighted to hear from Rachel Blake MP, member of the Treasury Select Committee, as well as FGF’s Chief Economist and former Treasury and Downing Street advisor, Dan Corry. We’ve got an exciting programme ahead of further events for potential partners who might be interested to join.
As we hit recess, we can reflect that during the last year, while the road has had its challenges, there have also been significant achievements. Business engagement can and should be enhanced, and FGF’s new Business Panel will be putting its shoulder to the wheel in that endeavour.
For further information on the FGF Business Panel, contact John Lehal, Convenor of the Business Panel on [email protected] or Adam Terry, FGF Deputy Director on [email protected]
