The state is nothing like a start-up

Pat McFadden wants the state to be more like a start-up, but the ‘move fast and break things’ mentality has no place in public services on which so many depend. There is, however, a better model…

The government’s announcement of a £100m innovation fund to embrace a “test-and-learn” mindset is undeniably ambitious. Speaking at University College London, Pat McFadden, chancellor of the Duchy of Lancaster, outlined a vision to make the state “more like a start-up,” introducing experimental teams tasked with tackling big public sector challenges. These will focus first on improving family support and reducing the costs of temporary accommodation, then ultimately “rewire the state one test at a time”. 

It’s romantic to re-imagine public services as Silicon Valley-inspired laboratories of dramatic change, but there’s a crucial difference: Government departments also need widespread public support for their innovations. 

Start-ups are renowned for their dynamism and adaptability, but they are also notoriously risky ventures. That may be OK for a small tech company experimenting with blockchain but for government services that millions of people rely on daily trust and accountability are critical. 

Public services need to offer safety and equity alongside pure innovation, not just ‘move fast and break things’. So if government is to look to private-sector models, it would be a more dynamic solution to follow the scale-up model: responsible, growth-oriented, and focused on long-term sustainability. 

Scale-ups know how to innovate within structured systems, prioritising robust governance and accountability while driving change. Governments, like scale-ups, have a duty to model how innovation can be achieved safely, inclusively and with measurable impact. 

At its heart, this proposal has merit. The bureaucratic machinery of government can be slow and inflexible, often stifling creativity and progress. The Prime Minister even went so far as to suggest that Dominic Cummings’ infamously blunt critiques of the civil service held some truth. Injecting fresh ideas and outside expertise, as McFadden suggests with “tours of duty” for tech professionals and secondments for frontline workers, could help break down silos and foster collaboration. 

Eroding trust in public institutions

However, there is a world of difference between the challenges faced by a start-up and those faced by government. A start-up failing to launch a product may disappoint investors, but a government experiment with public services gone wrong can devastate lives. For example, rushed or mishandled reforms in areas like social care or housing could leave vulnerable families without critical help and further erode trust in public institutions.

With faith in public institutions at an all time low, everyone from ministers to chief technology officers will be keen to win public confidence in innovation across public services, from how patient data is used, to implementation of digital ID services. To do this means prioritising security, inclusivity, and long-term sustainability, within each new idea. 

For example, when deploying digital tools to address issues like temporary accommodation, safeguards must ensure data is used responsibly, systems are accessible to all and decisions are subject to rigorous oversight. If you’re working on critical digital projects in government departments you should be a registered professional, and happy to have your name on a public register – just as we expect from chartered accountants or doctors. Without independent assurance and clear accountability, the very communities these initiatives aim to support could be left behind or even harmed. 

Yet, with the ‘scale up’ mentality, Whitehall can be the place where we develop digital solutions that can be exported worldwide, enable growth, and make us a true powerhouse. The call to simplify the civil service’s “mind bogglingly bureaucratic” hiring processes is long overdue. Attracting the best talent, both from within the public sector and the private sector, is critical to delivering meaningful reform. Asking a data scientist to be part of solving entrenched public sector challenges is great, but they need the necessary tools, support, and evidence of their professionalism . 

McFadden’s test-and-learn ethos has the potential to drive meaningful reform, as long as it carefully avoids the pitfalls of Silicon Valley’s “fail fast” culture

McFadden’s test-and-learn ethos has the potential to drive meaningful reform, as long as it carefully avoids the pitfalls of Silicon Valley’s “fail fast” culture. This is where government has the opportunity to set the standard for how to enable growth safely. By acting like a scale-up, it can demonstrate how innovation, when grounded in accountability and inclusivity, can deliver real results. Reforming recruitment must go hand-in-hand with empowering individuals to make meaningful changes within a structure that values transparency and accountability. 

The government as a scale-up would be agile, forward-thinking, and firmly rooted in its unique role as a guardian of public trust and a provider of essential services. If done right, this plan could lead to the resilient, responsive state McFadden envisions. 

But let’s not forget: in government, there are no venture capitalists to bail you out. The stakes are too high, and failure is not an option. 

Rashik Parmar MBE, CEO of BCS, The Chartered Institute for IT and Former EMEA vice President, technology of IBM