Civil Service Impartiality

Tuesday 7th March 2023 Lords Chamber

Commons Urgent Question

The following Answer to an Urgent Question was given in the House of Commons on Monday 6 March.

“I can confirm that, following a media report the previous day, Sue Gray, formerly second Permanent Secretary to the Department for Levelling Up, Housing and Communities and to the Cabinet Office, resigned from the Civil Service on Thursday 2 March. This resignation was accepted with immediate effect. On Friday 3 March, a statement from the Opposition announced that the Labour Party had offered Sue Gray the role of chief of staff to the leader of the Opposition.

The House will recognise that this is an exceptional situation. It is unprecedented for a serving Permanent Secretary to resign to seek to take up a senior position working for the leader of the Opposition. As honourable Members will expect, the Cabinet Office is looking into the circumstances leading up to Sue Gray’s resignation in order to update the relevant Civil Service leadership and Ministers of the facts. Subsequent to that, I will update the House appropriately.

By way of background, to inform honourable Members, there are four pertinent sets of rules and guidance for civil servants relating to this issue. First, under the Civil Service Code, every civil servant is expected to uphold the Civil Service’s core values, which include impartiality. The code states that civil servants must

‘act in a way which deserves and retains the confidence of ministers’.

Secondly, rules apply when very senior civil servants wish to leave the service. Permanent Secretaries are subject to the business appointments process that, for most senior leavers, is administered by the Advisory Committee on Business Appointments. ACOBA provides advice to the Prime Minister, who is the ultimate decision-maker in cases involving the most senior civil servants. Once the Prime Minister agrees the conditions and the appointment is taken up, ACOBA publishes its letter to the applicant on its website.

The business appointment rules form part of a civil servant’s contract of employment. The rules state that approval must be obtained prior to a job offer being announced. The Cabinet Office has not, as yet, been informed that the relevant notification to ACOBA has been made.

Thirdly, civil servants must follow guidance on the declaration and management of outside interests. They are required, on an ongoing basis, to declare and manage any outside interests that may give rise to an actual or perceived conflict of interest. Finally, the directory of civil service guidance states:

‘Contacts between senior civil servants and leading members of the Opposition parties … should … be cleared with … Ministers.’

Having set out the relevant rules, I finish by saying that, regardless of the details of this specific situation, I understand why Members of this House and eminent outside commentators have raised concerns. The impartiality and perceived impartiality of the Civil Service is constitutionally vital to the conduct of government. I am certain that all senior civil servants are acutely aware of the importance of maintaining impartiality. Ministers must be able to speak to their officials from a position of absolute trust, so it is the responsibility of everyone in this House to preserve and support the impartiality of the Civil Service.”

15:20

[Baroness Smith of Basildon (Lab)]

My Lords, we have heard a lot of nonsense on this over the past few days. Over many years, Sue Gray has been praised by Ministers from all parties for her abilities and her impartiality. She is not unique in being offered a political role on leaving the Civil Service. For example, noble Lords will recall that the noble Lord, Lord Frost, left the diplomatic service to be a political advisor to the then Foreign Secretary before becoming a Minister in your Lordship’s House.

[Noble Lords]

Oh!

[Baroness Smith of Basildon (Lab)]

We have had a lot of heckling—I think we are getting a bit bad-tempered in the Chamber these days. I am happy to repeat what I said, in case anyone missed it.

It is not without precedent that a senior civil servant is offered a political role on leaving the Civil Service, but Sue Gray is certainly the first to be attacked in this way. She has had such a distinguished career, and I am appalled that some now impugn her integrity for the time that she served successive Governments. Surely we should welcome that the leader of His Majesty’s Official Opposition, in preparing for government, wants to employ someone with such impeccable credentials and integrity—or perhaps those kicking up a fuss just fear the appointment.

[The Minister of State, Cabinet Office (Baroness Neville- Rolfe) (Con)]

I will set out the facts from a slightly different perspective. Sue Gray, formerly Second Permanent Secretary at DLUHC and at the Cabinet Office, resigned from the Civil Service on Thursday. This resignation was accepted with immediate effect. Because it was unique—and I would say unprecedented—for a serving Permanent Secretary to resign to seek to take up a very senior position, that of Chief of Staff working for the leader of the Opposition, we are looking into the circumstances leading up to her resignation. However, it is incumbent on the office of the leader of the Opposition to be much more forthcoming about the details of what discussions were involved and the timing of those discussions so that we are able to complete our fact-finding exercise.

Ministers must be able to speak to their officials from a position of absolute trust. It is the responsibility of everyone in this House to preserve and support the impartiality of the Civil Service, and this step does the opposite.

[Lord Butler of Brockwell (CB)]

My Lords, the Minister sometimes refers to the fact that at one time she used to work for me when she was a professional civil servant in the Cabinet Office. Does she agree that the appointment of Sue Gray to give professional assistance to the Opposition in preparing for the possibility of government throws no more doubt on the impartiality of the Civil Service than the noble Baroness’s very welcome presence on the Conservative Front Bench?

[Baroness Neville-Rolfe (Con)]

I do not like to comment on individual cases.

[Noble Lords]

Oh!

[Baroness Neville-Rolfe (Con)]

But, in my own case, I left to go to Tesco, where I served for 15 years. I then took a different path. I served as a civil servant with due impartiality and indeed confidentiality of everything that I did and learned there, and that will be a requirement for Ms Gray.

[Lord Wallace of Saltaire (LD)]

My Lords, I declare an interest as the husband of a former civil servant and the father of a civil servant. To repeat what William Wragg, the chairman of PACAC, said in the debate yesterday in the Commons:

“It is important to ask”


the Minister

“whether he shares my concern that it is wrong to impugn an entire civil service for political bias, and that it is important that he asserts that from the Dispatch Box”.—[Official Report, Commons, 2/3/23; col. 26]

Is that not the most important thing for a Minister to do? As for the current concern, this was a leak by Sky News. I would have thought that we were all interested in ensuring that, if there is a change of Government after the next election, it is competently prepared and served. After the relative chaos we have had over the past five years, of too many Ministers moving too quickly, with some members of the Government deeply suspicious of the Civil Service all the way through, should we not welcome this achievement?

[Baroness Neville-Rolfe (Con)]

It is for the Civil Service of the day to prepare for Governments, as I remember doing in 1997, with three lots of policies. It is very important that ACOBA looks at this appointment. The business appointment rules govern the process by which civil servants take up new employment—it is part of their contract. As my right honourable friend the Paymaster-General said in the other place, there are various sets of rules and guidance designed to make sure that impartiality is observed in the Civil Service, particularly with the movement of senior Ministers or civil servants into other jobs.

[Lord Greenhalgh (Con)]

My Lords, it important to see impartiality in our Civil Service, which is judged throughout the world as the finest—arguably until Thursday—but precedents are just as important. The noble Baroness opposite said that one precedent was my noble friend Lord Frost. He was a special adviser—a political post—for five years and was also in the House of Lords before he took up a post as a Minister, so that is not a precedent. Last Thursday, a Second Permanent Secretary who was at the heart of this Government and of policy, and who advised government officials, turned over and took a political post without any break in contract. For me, that is completely different. Does my noble friend, who has Civil Service experience, agree that this move is simply without precedent?

[Baroness Neville-Rolfe (Con)]

I agree that it is both unusual and without precedent, and I agree that Ministers must be able to speak to their officials from a position of trust. As the Cabinet Office Minister, I have worked closely with Ms Gray two or three times a week. My noble friend is right and asks a legitimate question.

[Baroness Armstrong of Hill Top (Lab)]

Does the Minister accept that people like me worked with Sue Gray in government, and that she knew a lot about our Government, but that did not stop her acting impartially when the election brought in a different Government? The Minister cannot continue to imply that, because people are prepared to work for the leader of the Opposition, they suddenly lose their integrity and are unable to act impartially. Will she now admit to the number of people who have left the Civil Service because their impartiality has been impugned, and particularly how a past Prime Minister behaved towards them and the House of Commons in particular?

[Baroness Neville-Rolfe (Con)]

That is a completely different scenario. Ms Gray will work for the leader of the Opposition, which is a political post that she is moving straight into from the very top of Whitehall. That is why we have rules and guidance. I am surprised by the response from the party opposite: I would have thought that it would want to get on and explain what she talked about with the leader of the Opposition and what else she was doing at the same time. This seems to me to be quite different from some of the other cases that have been mentioned.

[Lord Macpherson of Earl’s Court (CB)]

My Lords, like my noble friend Lord Butler, I remember a number of examples of people moving from the Civil Service to political positions, in particular my old friend, the noble Lord, Lord Sassoon. He was a very successful director-general at the Treasury, who moved to become Gordon Brown’s ambassador to the City; he then resigned and turned up the next day as an adviser to George Osborne. Surely the issue is about the ACOBA rules, which are all too often not observed by members of the Government. Does the Minister agree that, so long as Ms Gray follows the recommendations for an adequate cooling-off period, which I would assume would be somewhere between three and six months, she is pursuing the right and honourable course?

[Baroness Neville-Rolfe (Con)]

Ms Gray does indeed need to apply to ACOBA, which she has not yet done. Her post is a very senior post of a political kind, and I am sure that ACOBA will look extremely carefully at the move and lay down appropriate rules and guidance for her departure from the Civil Service.