With Keir Starmer's resignation now a reality, attention is shifting to Andy Burnham, who may soon find himself at the helm of the Labour government. But amidst this change in leadership, a pressing question lingers: has Labour lost its way on economic policy? Mariana Mazzucato, the influential economist whose 'mission economy' concept inspired Labour's 2024 general election manifesto, fears that the party has strayed from its original vision.
Mazzucato contends that Labour's mission-oriented approach was always intended to redefine the purpose of the economy and have a direct impact on citizens' daily lives. Drawing on international examples, such as Brazil's focus on domestic health technology production and Barbados's efforts to promote social cohesion, she argues that this approach has been successful in various forms around the world.
However, as the Starmer government progressed, Mazzucato claims that the mission agenda was increasingly treated as a communications exercise rather than a core governing architecture. The Mission Delivery Unit, initially established within the Cabinet Office to facilitate cross-departmental coordination, was reportedly disbanded in autumn 2025 and replaced by a No 10 team focused on three immediate priorities: reducing NHS waiting lists, securing borders, and addressing the cost of living crisis.
Criticism is also directed at the Treasury, which Mazzucato believes failed to fully integrate its fiscal framework and spending review processes with the mission goals. The industrial strategy reverted to a more fragmented approach, identifying eight 'high growth' sectors rather than aligning with broader challenge-led missions. Mazzucato stresses that economic growth should be an outcome of well-designed missions, not a mission in itself.
Despite these criticisms, some positive developments were acknowledged. Following calls from Mazzucato and other economists for increased public investment, the then Chancellor, Rachel Reeves, updated fiscal rules to consider national assets alongside liabilities, providing a more comprehensive view of the UK's financial health. New public finance bodies, including the National Wealth Fund and Great British Energy, were also established. These measures have shown tangible results, particularly in the Clean Power mission, where low-carbon sources accounted for 73.3% of energy generation in 2025, a notable increase from 60.3% in 2023.
As Andy Burnham prepares to potentially take the helm, Mazzucato has published a new report, 'From Mission Talk to Mission Delivery', outlining five key changes necessary to achieve the full mission agenda and advocate for a deeper state transformation. These include re-establishing a central coordinating unit with significant powers and rebalancing Treasury's priorities towards mission-led outcomes rather than short-term economic growth.