Pat McFadden calls for a start-up mindset in government transformation

In a landmark speech at University College London, Pat McFadden, the Cabinet Office Minister and Chancellor of the Duchy of Lancaster, outlined an ambitious vision for government reform. Central to his address was the call for the civil service to adopt a "test and learn" approach, inspired by the agility and iterative problem-solving methods of start-ups.

Civil servants are encouraged to embrace a culture of experimentation and adaptability. McFadden’s speech underscored the importance of equipping staff with the skills and tools to navigate complex, dynamic challenges.

For the broader tech industry, McFadden’s speech signals a growing opportunity to collaborate with government on innovative solutions. His focus on iterative development, AI, and user-centred design highlights areas where vendors can align their offerings with public sector needs.

The speech builds on themes from the government’s recently announced Plan for Change, which sets out key milestones for public sector transformation. McFadden framed the delivery of these milestones as dependent on a fundamental overhaul of how the state operates.

McFadden highlighted the need for a cultural shift within government, emphasising curiosity, experimentation, and adaptability over rigid planning.

"In the digital age, you don’t have to work out precisely what you need to build at the start, and then start building it. You can start with something small and try it out. Test it. Fix the problems. Change the design. Test it again," he explained.

This iterative process, McFadden argued, could revolutionise public services, allowing them to better meet citizen needs in real time: "Suddenly the most important question isn’t ‘How do we get this right the first time?’ It’s ‘How do we make this better by next Friday?’"

McFadden pointed to successful case studies where this approach has already delivered results, such as the transformation of the UK’s passport renewal system.

"The state turned things around by using the power of tech to modernise the system, putting the user at the heart of the service, and continually improving it," he said.

He also acknowledged lessons learned from the rollout of Universal Credit, where early failures were addressed through a “reset” involving a small, multidisciplinary team that adopted a test-and-learn culture.

To scale this approach, McFadden announced details of a £100 million Innovation Fund, first revealed in the Autumn Budget. Starting in January 2025, the fund will support “test-and-learn teams” in Manchester, Sheffield, Essex, and Liverpool, focusing initially on two key challenges:

• Temporary accommodation: Reducing costs and improving outcomes.
• Family support: Expanding the reach of family hubs to more disadvantaged families.

The teams will include policy officials, digital and data experts, and local public service staff, working collaboratively to design and test solutions.

"We’re not going to dictate how they do that. The central point of these test-and-learns is that we set them a problem and then leave them to get on with it," McFadden explained.

AI gets a mention; more mentions to come

The speech also stressed the importance of harnessing emerging technologies like Artificial Intelligence to enhance public sector efficiency.

"We are on the cusp of the next technological revolution. AI is set to transform the way people work and the way data is used. And the state cannot afford to be left behind," McFadden said.

He highlighted existing use cases, such as AI tools in education and the Foreign, Commonwealth & Development Office, and called for greater adoption across government.

"We should expand this where possible to make things quicker, easier, and cheaper," he added.

Attracting talent to public service

Another pillar of McFadden’s vision is reforming civil service recruitment to attract innovators, disruptors, and specialists from outside Whitehall. He acknowledged that current hiring practices are often “mind-bogglingly bureaucratic and off-putting” and pledged to overhaul the process to make it more accessible.

McFadden also announced an expansion of the No.10 Innovation Fellows programme, inviting world-class technologists to undertake six- to 12-month “tours of duty” in government to address challenges such as cutting NHS waiting lists or reducing violence against women and girls: "We want public service to be open to people who want to serve in this way for a limited time," he said, emphasising the need for a blend of private sector expertise and frontline public service insight.

The No.10 Innovation Fellows programme copies the success of the Presidential Innovation Fellows  programme in the United States, where since 2012, exceptional private sector technologists, designers, and innovators have been brought into federal government for 12-24 month terms. Fellows collaborate with federal agencies on high-impact initiatives, leveraging their expertise to modernise services, enhance data use, and deliver innovative solutions.

A call to action

McFadden closed his speech with an appeal to creative thinkers and technologists to contribute their expertise to public service: "My message to creative thinkers is this: this is your chance to serve your country. Use your brainpower and tech talents to fix some of the biggest problems we face today. Britain needs you."

The minister’s speech reflects the government’s ambition to bridge the gap between the agility of the private sector and the scale of public service delivery.

Whether this vision can be realised will depend on the success of early test-and-learn initiatives and the willingness of government, civil servants, and industry to embrace change.