How the centre of government can design better growth policy

2nd February 2026

The government needs to sharpen up its strategy for raising the rate of growth, led by a stronger more economically capable No.10.

This report, in partnership with Imperial College London, sets out the underlying problems with the way Labour like many previous governments approaches growth policy, and how the centre can be reformed to better equip it to take tough choices on growth.

To provide for a stronger, more economically qualified No.10, capable of working on equal terms with the Treasury, the prime minister should:

Focus his No.10 on setting direction and resolving political problems, not becoming a focal point for lobbying or policy-origination

Set up No.10 to avoid being a centralising, micro-managing team springing ideas and demands upon the rest of government.

Bring in more expert advice to his top team, so that ‘the economics' isn't left to the Treasury, but can sit equally with the prime minister - who must lead from the very top on growth policy.

Read the full report HERE
Pdf 48 Pages

Not got time to read the report in full then here is a brief summary -

Overall Purpose of the Report

The paper examines why the UK's economic growth has been weak since around 2008 and argues that the problem isn’t primarily a lack of good ideas — but a failure in how government designs and implements growth policy. It focuses on the central leadership structures of government, especially Number 10 Downing Street (the prime minister’s office) and its relationship with the Treasury and other departments, and how they can be improved to deliver better long-term growth.

Why the UK Struggles with Growth

The report identifies persistent growth weaknesses rooted in:

Low productivity — the UK has struggled with weak productivity growth compared with historical norms.

Under-investment (both public and private) and persistent regional disparities in growth and productivity.

The UK’s economy underperforms relative to befits its size and potential.

The report argues that solutions aren’t mysterious — the drivers of growth (skills, investment, technology adoption, competitive markets) are well known. The bigger challenge has been turning policy intentions into action.

Main Diagnosis: Governance, Not Just Policy

A central theme is that the governance of growth policy — how it’s decided, who leads it, and how priorities are set across government — is the main barrier:

Strategy tends to be too broad and vague, making it hard to drive specific trade-offs and deliver results.

Government often fails to make the conscious political choices needed to prioritise growth over other policy goals.

Collaboration across departments is weak; success requires collective action, not isolated decisions.

The report signals that these aren’t just technical problems but political ones — meaning leaders must be willing to make tough decisions and stick with them.

[b]Key Recommendations

Strengthen No.10’s Strategic Role

The prime minister’s office should:

Focus on setting a clear growth strategy and managing political trade-offs.

Avoid being an "idea factory" or a centre of micromanagement; instead it should direct and coordinate.

Have a significantly stronger economic policy team, better resourced and capable of engaging with the Treasury on equal footing.

Improve Coordination Between No.10 and Treasury

The report argues that growth won’t succeed if the Treasury is left to drive most of the economics alone. It recommends joint leadership on strategic policy with shared responsibility between the PM and chancellor.

Address Key Trade-Offs Explicitly

Growth policy involves trade-offs (e.g., speed of reforms vs short-term costs, regional equity vs national priorities). Leaders must confront them directly, not defer them.

What This Means in Practice

The report doesn’t prescribe specific policy fixes (like tax changes or infrastructure plans). Instead, it emphasises institutional and organisational change so government has the capacity to:

Build coherent strategies

Execute them consistently over time

Monitor progress and adjust when needed

In other words: better governance, not just better ideas.

In Conclusion

The report argues that the UK’s growth challenges are as much about politics and governance as economics. It calls for:

A stronger, economically capable centre of government

Clear prioritisation of growth goals

Better coordination and implementation across Whitehall

All aimed at translating broad ambition into concrete delivery.