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PASC report launch
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PUBLIC ADMINISTRATION SELECT COMMITTEE
Speech by the Chairman, Bernard Jenkin MP
PASC report launch, “Change in Government: the agenda for leadership” Thirteenth Report of Session 2010‐12
Thursday 22 September at 11.30 am, Wilson Room, Portcullis House
The Public Administration Select Committee today reports on a major piece of
work, which will inform our activities over the course of the rest of this
Parliament.
Over the last six months we have been examining the Government’s progress
against the Prime Minister’s promise made in July 2010, when David Cameron,
speaking to civil servants, said he aimed to “turn government on its head;
taking power away from Whitehall and putting it into the hands of people and
communities.” The Coalition Agreement is astonishingly ambitious to
transform the relationship between government and the citizen in order to re‐
empower local government and communities –
• The ‘Big Society’;
• Localism and decentralisation;
• Radically increased openness and transparency; and
• The transformation of bureaucracy to fit the post‐bureaucratic age, to
promote a far more direct relationship between service providers and
service users, without layers of intermediate bureaucracy.
No member of PASC objects fundamentally to any of these objectives. I am an
enthusiast. This would be a bold and radical agenda, and a challenging one for
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any government. But against the overriding priority of deficit reduction, the
scale and nature of the overall reform programme, at least in peacetime, must
be unprecedented.
PASC’s principle remit is to look at government as a whole, at the quality of
management and process in Whitehall. So we wanted to know what exactly is
being done to implement this reform – what objectives are being set; what
organisational changes are being made; how the process is being led; how
lessons learned are being shared across departments; how the civil service
workforce are being engaged to deliver change throughout the system; and
what the outcome will be in, say, three years’ time.
In April I wrote to each Permanent Secretary to ask:
• what impact the Big Society reforms would have on each department
• what effect the reduction in operating costs required by the Spending
Review would have
• how the changes required would be implemented, and whether there
was a formal plan to do so
• what steps were being taken to retain and build up the vital relevant
skill‐sets in commissioning and contracting and facilitating community
leadership; and
• whether they were working on reforms together with other
departments or public bodies.
We published an interim ‘end of term report’ on Whitehall departments in
July, together with commentary by our excellent special adviser, Professor
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Andrew Kakabadse of Cranfield University. On the basis of the 14 responses
we had received ( ‐ two departments failed to respond altogether, but have
now done so ‐ ), we found that the centre of Government does not provide the
necessary strategic leadership and a governance framework to enable
Departments to manage their change programmes. There is little sharing of
best practice and of successful implementation of structural reform.
Today we publish our comprehensive findings. Our overall conclusion is stark:
unless the government can rapidly develop and implement a comprehensive
plan for cross‐departmental reform in Whitehall, the Government's wider
ambitions for public service reform, the Big Society, localism and
decentralisation will fail. As our report points out, we know that the Prime
Minister’s Director of Strategy and others at senior levels in the Government,
are exasperated by lack of progress and are apparently appalled by the
‘custom and practice’ of Whitehall and by the deadweight of inherited policy,
not least by the overbearing constraints imposed by the vast body of EU law
and regulation and by the direct application of the Human Rights Act. The
analysis and recommendations in the Committee’s report, “Change in
Government: the agenda for leadership” also highlights the lack of specialist
expertise and other key skills, institutional inertia and complacency which they
say have justified the Prime Minister's complaint about "the enemies of
enterprise" within Whitehall.
The traditional model of Civil Service reform through gradual change is not
sufficient for circumstances where the Government proposes rapid
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decentralisation and a structural reduction of one‐third in departmental
budgets. The Committee have found that considerable structural
organisational reform of the Civil Service is required. We recommend that the
Government must formulate a coherent programme for change across
Whitehall, and that the Cabinet Office should take on a much stronger
coordinating role and should provide much more vigorous leadership to ensure
that every department of state is leading and implementing change effectively.
We call for a “world‐class centre of Government . . . headed by someone with
the authority to insist on delivery across the Civil Service.” The Government
“should produce a comprehensive change programme articulating clearly what
it believes the Civil Service is for, how it must change and with a timetable of
clear milestones.” Change must be driven: it will not just happen.
In historical perspective, Civil Service reform is nothing new: we were told that
there had been a ‘reform industry’ for decades. But, crucially, the job of reform
is unfinished, at the very point that the Civil Service is facing massive change: a
decentralising agenda and a reduction in administration budgets of one third
on average.
Many former Ministers have told us that they see reform as necessary and are
frustrated by Civil Service inertia. From the other side, we have learned that
Government has often failed to understand what the Civil Service is for, what it
should do and what it can be expected to deliver. Ministers want greater
specialism in the Civil Service, rather than intelligent generalism. They want
more risk‐taking, rather than safe bureaucratic inertia. They want more cross‐
departmental working, rather than silos and stovepipes. And they want more
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continuity in top posts, rather than the reshuffling which moved ten out of 16
permanent secretaries in the Coalition’s first 12 months.
What PASC calls for in this report is a more innovative and entrepreneurial Civil
Service which works across departmental boundaries. Unless this can be
achieved, the Government’s flagship policies will be left high and dry.
So what sort of Civil Service reform is needed?
Traditionally, the Civil Service has had three core capabilities –
• Advice to Ministers on policy and legislation;
• Management of public services; and
• Supervision of public bodies.
The reform agenda demands a fourth capability: the ability to engage with
voluntary and private sector organisations to contract and commission public
services. A conscious development programme here is essential. What
concerns us is that in some cases Departments are not identifying the roles and
capabilities required. So savings programmes are throwing out the good with
the bad.
There is of course a plan for Civil Service reform on the table. But given what I
said earlier about the Civil Service reform industry, these days, there always is
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one. Today’s programme, Civil Service 2020, lacks clear objectives and how
they will be achieved. We hoped formore detail in July’s Open Public Services
White Paper, but there is nothing there.
So we must sound the alarm, not least to get the attention of Ministers.
Ministers want this change in the Civil Service to happen – they have told us
repeatedly that they do. Our message to Francis Maude is that he must take a
lead on the process of Civil Service reform – and he must have the authority
from the Cabinet to take the lead ‐ or the Government’s reform programme
will fail. Some ministers do not even understand that that it is their duty to
take a personal interest in Civil Service reform since it is so vital to achieving
their Government’s programme. Francis told us that the last thing the
government needs is a new plan or blueprint and that he prefers “doing stuff”.
But proper leaderships and governance of the reform of Whitehall is the one
thing that simply cannot be delegated to this system. We emphasise that
these reforms need a clear political lead. Unless Ministers stress that
structural reform is a priority, many civil servants will just keep their heads
down until the latest speeches to Civil Service Live have faded away and then
carry on as before.
We have set out the key elements of a plan for Civil Service reform. It needs
clear objectives, appropriate scope, buy‐in from people at senior levels, central
coordination and a clear timetable.
We have also set out six key principles of good governance and change
management against which we will assess performance in reforming the Civil
Service over the course of this Parliament. They are –
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• Leadership
• Performance
• Accountability
• Transparency
• Coherence
• Engagement.
Leadership is the first and most important principle of change management.
We want to look at how senior departmental managers exercise leadership to
drive through change, in particular through the new structures of
departmental boards.
We will assess how performance is affected by the development of new and
relevant skill sets in government.
We would like the Government to assess whether the old Haldane model of
Ministerial responsibility and accountability is really appropriate in this age of
radical transfer of functions out of Whitehall.
We want to ensure that Government is being properly transparent and
empowering citizens to use the data it is releasing. For us, it is crucial that
change programmes are coherent and coordinated from the centre.
It is essential that reform is coherent. We identified a clear danger of
uncoordinated change programmes being implemented across Government.
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We believe is essential that the Cabinet Office take leadership of the reforms
and coordinate efforts across Whitehall.
And we want to ensure that civil servants are properly engaged in and
empowered to deliver reform.
You can expect to hear a good deal more from the Committee about these
principles for good governance of change management over the course of this
Parliament. You will hear from us about how we expect Civil Service reform to
be led: by Ministers, but also by officials from the centre. We have concluded
that there is no substitute for a world‐class centre of government which can
co‐ordinate, deliver and sustain a world‐class reform throughout the Civil
Service. To this end, we are proposing a special inquiry into the role and
functions of the Head of the Civil Service. What does that title mean? What
should it mean?
So watch this space!
ENDS