Plan for Change: Milestones for Mission-led Government

(Limited Text - Ministerial Extracts only)

Thursday 12th December 2024 Lords Chamber

[Baroness Finn (Con)]

My Lords, I thank the noble Baroness the Lord Privy Seal for repeating the Statement, which was delivered in the other place last week.

[The Lord Privy Seal (Baroness Smith of Basildon) (Lab)]

The noble Baroness has thanked me for repeating the Statement, but I am not repeating it. This is questions on the Statement.

[Baroness Finn (Con)]

I apologise to the Lord Privy Seal. We welcome this relaunch and look forward to more in the months ahead. However, the Statement, while undeniably rich in aspiration, is regrettably bereft of a clear plan for transforming its lofty ambitions into real change for the British people.

Few would disagree with the Government’s aims and their six missions. A mission-driven approach to governance makes sense—indeed, it is something that echoes the last Government’s levelling-up missions—but, unless the Treasury waives its dogmatic commitment to rigid silo budgets, it is hard to see it working.

It is encouraging to see the Government recognise the need for clear objectives. There are many words that we welcome, such as growth, value for money, getting rid of waste and accountability. However, as we all know, governance is about more than words; it is about action, and the Government will be judged on what they actually achieve. The Prime Minister has been quicker than most to blame his Government’s shortcomings on the Civil Service, which he describes as being all too comfortable in

“the tepid bath of … decline”.

Yet, while the diagnosis may be accurate, the prescription is notably absent. Indeed, the Prime Minister seems to have been forced into what is known as walking back his words of criticism.

I have spent many years working with civil servants, and I put on record that I believe we have some of the finest civil servants in the world. However, there is widespread agreement—especially among those of us, both politicians and officials, who have had the privilege and responsibility of participating in government—that the Civil Service is not performing to the standards of the modern, effective state. We cannot ignore serious failures identified in several public inquiries: the infected blood scandal, the Post Office Horizon debacle and the handling of the Covid-19 pandemic. In each instance, inquiry chairs identified systemic issues: officials neglecting statutory duties, misleading Ministers and, in some cases, deliberately destroying evidence.

Furthermore, institutional failings have been identified over decades, since the Fulton committee report in 1968 and beyond: the cult of the generalist and lack of enough deep pools of knowledge; churn; the unplanned and random movement of officials without regard to business need; and the resistance to influence and incomers from outside. Yet we have heard nothing in the Statement about how this Government intend to address any of those shortcomings. Instead, we are told vaguely that more will be said about reform soon. Government requires more than promises of future promises, and we look forward to hearing the detail of a serious programme of reform.

I have some questions for the noble Baroness the Lord Privy Seal. First, raising living standards in every part of the UK so that working people have more money in their pockets, no matter where they live, is obviously a good idea, but how is that to be measured? What are the metrics? When will the data be published, and who will be held to account?

Secondly, the Office for Budget Responsibility said that this Government are very unlikely to build more homes than the last one. Why do the Government now believe they will be able to deliver on their commitment to build 1.5 million homes? Is there more money? Have the spending plans changed?

Thirdly, getting children ready to learn is also a good idea, but what do the Government mean by “ready to learn”? What are the definitions and metrics by which they will be measured and held to account?

Fourthly, the missions are notable for what is not in them. The Government have dropped the target to be the country with the highest sustained growth in the G7. There is no commitment on unemployment or getting people back to work, nor is there, as the Leader of the Opposition pointed out yesterday, any clear objective of reducing migration. The Government have chosen these six issues over GP surgeries and A&E or defence. Can the Lord Privy Seal explain the rationale for the choice of government priorities?

Lastly, can the Lord Privy Seal clarify the purpose and function of the so-called mission boards? Who attends them? What powers do they exercise? What decisions are they empowered to make, and under what legal authority do they operate? Crucially, do they work alongside, or in substitution for, the established Cabinet system of government? Why did the Prime Minister break his promise of chairing these himself?

At the PACAC hearing on 4 December, the Civil Service chief operating officer said that

“the governance and the wiring of how we do this might not be immediately observable”,

and made clear that the publication of the membership terms of reference and regularity of meetings was a matter for Ministers. Can the noble Baroness the Lord Privy Seal therefore commit to that information being in the public domain, in the interests of transparency and to monitor progress?

Ultimately Governments are judged not by the promises they make but by the results they deliver. This Government have set out an admirable if incomplete wish list but, without a hard-edged commitment to institutional reform and stronger implementation capability, that is what it will remain. Words without action are a disservice to those citizens who rely on public services and who look to government for leadership.

[Lord Newby (LD)]

My Lords, in my view, the targets—or possibly milestones—set out in the Statement are laudable, but I have severe doubts about the Government’s ability to meet them. Setting targets is easy but, without a proper plan for delivery, they are so much hot air.

In an attempt to improve delivery, the Government’s focus is on how budgets are used and whether the right systems are used to deliver policy outcomes. That is clearly crucial. In relation to that, the Statement poses the question: is power being devolved enough? Our view is that it is not being devolved nearly far enough, and that, unless power over budgets and tax raising is devolved to a far greater extent than the Government plan, those on the front line will not be in a position to exercise their discretion to deliver policy in the most appropriate way for the communities in which they live.

So I ask the Government: how rigorously are they going to look to devolve power? Will they report regularly, with reasoning, on the extent to which they have considered and accepted or declined to devolve power in individual policy areas? Given that their targets can be achieved only if the Civil Service is highly motivated, how do the Government believe that recent statements by the Prime Minister and the Chancellor of the Duchy of Lancaster, which cast doubt on the competence and enthusiasm for change of civil servants, will help meet that requirement?

Of the six milestones, I would like to question those on health and housing. On health, how do the Government reconcile their milestone of reaching the standard of no patient waiting more than 18 weeks for elective treatment with the Secretary of State for Health’s statement earlier in the week that the NHS should prioritise emergency treatment and “forget targets”? How is the NHS supposed to know what its priorities are if they appear to be changing from day to day? How can any target in respect of hospitals be achieved unless the Government fix the broken care system, which currently sees so many people stuck in hospital who do not need to be there?

Of all the targets, the one which strains credulity most is that on housing. The Government have pledged to build 1.5 million homes during the lifetime of this Parliament. They seem to think that changes to the planning system will be the most significant contribution towards meeting this target. I do not intend to comment on today’s planning announcement, but no planning changes are likely to come into effect until a year after the election at best. So the Government will have to meet their target with a maximum of four years’ increased rate of housebuilding.

This seems implausible, particularly as the Government have said very little about two of the non-planning policies that will be needed to make this happen. First, what is the Government’s numerical target for the building of social homes? Social houses are desperately needed to meet demand but, without a major increase in social housebuilding, it is very difficult to see how the Government can meet their overall target.

Secondly, where will the workers come from to enable the houses to be built? Present skills shortages in the construction sector make a rapid scaling-up of housebuilding literally impossible. Changes to the skills regime will help, but they will not yield a significant increase in new skilled employees until towards the end of this Parliament. The only way to meet the skills gap in the short term is to allow more migrant workers into the building sector. Will the Government therefore replace the arbitrary salary threshold for work visas with a more flexible, merit-based system to enable this to happen?

Finally, having set such clear priorities, what plans do the Government have to report regularly on their achievements? Will today’s Statement be followed by regular updates on progress? Setting targets is easy, but being able to achieve them is vastly more difficult.

[Baroness Smith of Basildon (Lab)]

My Lords, I thank both the noble Baroness and the noble Lord for their questions and comments. Perhaps I should apologise to the noble Baroness; she obviously expected me to repeat the Statement. It may be that that was her mistake in talking about the missions.

The Plan for Change is the milestones. As she will recall, the missions were during the election. They are the long-term ambitions. The milestones—a point that the noble Lord, Lord Newby, made—are the progress we make against those missions. It is the milestones that we can be judged against. Whereas the missions are long-term ambitions, the milestones are those that we can be judged against. I can provide the noble Baroness with more information on those.

The noble Baroness talked about siloed budgets. The Government have to work across government, and the noble Lord picked up on mission boards. When you work across government, so many of the issues you are dealing with are not for one department alone. For example, the noble Lord mentioned social care. It is absolutely the case that, unless people move out of hospital into the kind of care we need, we cannot meet the targets to give people elective surgery in the timescales we have set, which is part of the commitment we have made. So, to be clear, there will be higher living standards across the country. The reason for saying that is that we do not want economic growth to be centred on one or two places and work on the basis that this will spread out; there should be economic growth across the country.

I totally accept that 1.5 million homes is challenging: 90,000 of those, by the way, will be social housing. I do not think the noble Lord was here for the Question earlier, answered by my noble friend Lady Taylor, and for her Statement earlier today. We have already started the process. The National Planning Policy Framework is one of those steps. There is also a new homes accelerator and a new homes task force.

Skills are absolutely crucial to this. The work to ensure that the right skills are in the right place at the right time is already being undertaken across government and with industry because, unless industry buys into this, we will not be able to meet the commitment. The noble Lord’s point was well made, but that work is already going on and part of it will be transforming how the apprenticeship levy has been operating and making it the growth and skills levy, which is one of the things the industry has been asking for.

The noble Baroness spoke about the Civil Service. I think she will be aware, and many civil servants will be aware, of the frustration within the system of moving things along. For every new Minister who is enthusiastic about doing things—this is not a criticism of individual civil servants—the system is sometimes difficult to wade through. We want civil servants who are innovative, creative and professional and we want to help them achieve that.

Quite often, a lot of expertise can also come from outside the Civil Service. I do not think Ministers and civil servants should be wary or concerned about looking to outside expertise as well. When the system works well, it works well together. The relationship between Ministers and civil servants is really important. Ministers should not blame civil servants for their own failings. That does not mean that Ministers always have to take Civil Service advice, but it has to be taken into account.

The noble Baroness raised those issues in the context of the infected blood scandal, Covid and Horizon. I think there is some ministerial responsibility in respect of all those, as well, not least promising compensation without budgeting for it properly. That is what we have had to do in this Budget, and we have welcomed the opportunity to do so. It is absolutely right that those compensation schemes are there, but they were not budgeted for at all.

One of the problems I have with the Opposition is that although they say they support all the things we are putting in place to invest for the future—for growth, the economy and the NHS—when it comes to paying for that ambition for the country, they do not like any of the approaches we are looking at. That is the conundrum at the heart of the Opposition.

We should be held accountable. The noble Lord, Lord Newby, asks how we are accountable. These targets are there for us to be held accountable to, by Parliament and others.

The noble Baroness, Lady Finn, asked four questions, and I hope I got them down quickly enough. First, she said that the OBR said that we cannot deliver the housing. That is not quite what the OBR said, but we accept it is a very ambitious proposal. I make no apologies for the scale of ambition the Government have, and we are determined to meet that ambition. She also asked a rather curious question, on how we will measure whether children are ready to learn when they go to school. That information has already been collected, and it was found to be wanting. That information is already there so we can measure against the current matrix that is undertaken when kids first go to school.

The noble Lord also asked about ambitions on devolution and whether they will match our proposals. I hate to do this, but can I urge patience? Next week, we will publish our devolution White Paper, and there will be information in that I think will address some of the questions he raises.

[Lord Jackson of Peterborough (Con)]

My Lords, I note that in the Statement, the Prime Minister said, regrettably:

“We do not believe that a tawdry surrender to Tory Back-Benchers should be allowed to cut off the dream of home ownership”.


Is it not time we had a bit of honesty, rather than chutzpah, from the Government? The Labour Party, now in government, whipped its Peers in this House to vote for the nutrient neutrality regulations that blocked 120,000 homes. That was the Labour Party’s decision, when the previous Government were seeking to go ahead with home ownership. I hope the Leader of the House will address that point.

Surely, if we really do want to drive up GDP, we need to look at per capita GDP, which has stalled because of uncontrolled and unlimited immigration—which I accept is the fault of the previous Government to a large extent. In that vein, is it not important to have a proper, coherent, time-based and realistic immigration policy to tackle legal immigration as well as illegal immigration, in order to grow per capita growth and the wider economy?

[Baroness Smith of Basildon (Lab)]

First, on the nutrients neutrality issue, the noble Lord will be aware that the previous Government’s proposal was to override environmental concerns. We were very concerned that there should be mitigations in that legislation to ensure that it did not just override environmental concerns but took those into account. I have listened to some of the discussions on the environment and housing, and the two should go hand in hand: we should be looking to create good-quality housing and a good environment at the same time. I have looked at some of the proposals. The noble Baroness, Lady Taylor, and I both come from new towns, and there are some great examples and some poor ones. Where you have green lungs in new towns, green gyms surrounding housing and nature areas within developments, those are really important. Our commitment is both to the environment and to increasing housing.

On immigration, I can understand the noble Lord’s embarrassment about the last Government’s record. I think we were all shocked when we saw how much the figures had gone up and how inaccurate the previous Government’s figures were. It is fundamental to our polices that economic growth, secure borders and the security of the nation go hand in hand. Some £700 million was spent on a bound-to-fail, flawed Rwanda immigration policy, and we can all think of ways that could have been much better spent—actually processing asylum claims and securing our borders. The Prime Minister has undertaken work, building up relationships with other countries and looking for agreements with them. Some people leave their country and seek refuge, asylum and a better quality of life here because they are fleeing war or poverty, for example. We should be working internationally to address those issues and not just spending a lot of money on flawed policies.

[Baroness Neville-Rolfe (Con)]

My Lords, I was glad to hear the Leader of the House talk about the use of external expertise in moving forward these milestones and missions. As somebody who came from business and has worked within government, I think different perspectives are very helpful. That is particularly important with very difficult challenges on things such as skills, especially in construction and planning. It is obviously vital that we progress that fast, so I welcome the efforts that have been made. I just wanted to pick up something my noble friend Lady Finn asked, which was about how the mission boards would work, who would be attending, who would be involved and how that fitted in with Cabinet committees and so on.

[Baroness Smith of Basildon (Lab)]

I do not have an organogram in front of me, so that is detail I probably cannot supply. But the purpose of the mission boards is to follow the missions we have in government. This is a way of having cross-governmental working, bringing key people together. If the Prime Minister is not available, the Chancellor of the Duchy of Lancaster is. On that cross-government working, Cabinet committees work, in some ways, and some may still do so, but we felt that the mission boards better reflected the missions we have outlined and made a commitment on.

[Lord Birt (CB)]

This is territory that I trod for six years when working as the Prime Minister’s strategy adviser. I have also trodden the same territory widely in the public and private sectors. I have a couple of points to make. First, it is entirely right, in any institutional environment, to have ambition—you have to start with that, and it right that this Government have it. A special factor of government is its sheer scale and size, and the multiplicity of departments. The Leader of the House is entirely right to emphasise that challenge. That is why I strongly support the notion of mission boards, which will be operationally not the same as Cabinet sub-committees. I will raise one issue positively and constructively: before you get to milestones, you have to have a holistic strategy that is deeply based on analysis of all the factors in play, which are always dynamic and changing. You always have to refresh your way of reaching ambitious goals.

Secondly, my experience in government was that, overwhelmingly, the Civil Service was properly skilled, very collaborative and fit for purpose—not always but generally. But, dare I say it, that was not always true of the politicians. I have great respect for their skills and experience, but they inevitably sometimes have to recognise that they lack the heavy-duty institutional experience necessary to achieve fundamental reform.

[Baroness Smith of Basildon (Lab)]

I thank the noble Lord for those comments. He is welcoming the mission-led strategy with the milestones, and he is right to say that you have to measure them and look at what is behind them overall. He has a point about experience and longevity. The Prime Minister has been wise and has spoken about Ministers being in post for longer—I have some skin in the game here. We saw such a churn of Ministers under the last Government, and it gets very difficult for them to build expertise and relationships with civil servants and stakeholders, only to be moved on. I speak as a Minister who has served in a number of departments over the years, and the good sources of information are the civil servants who have been there a long time, as well as new civil servants—who bring fresh experience to you—and past Ministers in your role.

All of us, at any stage in our careers—whether we are new to the job or have been in it a long time, and whether we are politicians or civil servants—need to find that way of learning from each other, building on the best and having respect for different perspectives. We expect civil servants to give that professional advice and guidance and to understand that we are politicians, who need clarity. I hope the milestones bring that clarity to the workings with the Civil Service as well, so that both politicians and civil servants have clarity about what they are doing. My own experience of civil servants over the years has been very positive. I have never known a civil servant to balk when I said that I wanted outside expertise; they have never had any issue with that, and in fact, they have welcomed it in many cases.

[Baroness Armstrong of Hill Top (Lab)]

My Lords, will my noble friend take the opportunity to develop the issues around young people? It is tragic that over the last 10 to 15 years the opportunities for young people in this country have diminished rather than increased. Some of that is external, but a lot has been caused by decisions taken by previous Administrations which limited what young people were able to do. Now, in the missions and the milestones, we have the opportunity to bring in mental health expertise, with both the voluntary sector and the NHS—alongside the work of improving buses. I can tell you about a youngster who left the care system and was then in a village nine miles away from the DWP offices and the jobcentre. It took three buses to get there. He missed his appointment and was sanctioned. Bringing everything together will make a difference for that youngster but also for lots of others. That is why the White Paper on opportunities for getting people back into work was so important, but the DWP and the department of health cannot do it on their own. You cannot even do it just from the Cabinet Office; it has to be across departments. I hope that the Government are really working to crack those issues, to give our young people real opportunities.

[Baroness Smith of Basildon (Lab)]

My noble friend makes a very powerful point. I followed on from her at the Cabinet Office, where we had the v programme in place. I was reminded of that only last week when I had an email from a young man who became a volunteer in my office and is now a mental health worker. He would never have taken that step had it not been for the opportunity to volunteer and the support to do so. She makes a powerful point around linking government together, and I was interested in her comment about mental health as well. Talking to a number of young people, it seems to me that one thing that has quite a significant impact on young people’s mental health is the insecurity of their housing. If we can address some of that to ensure good-quality, secure housing for young people—and that young people are part of the solution in building those homes as well—that goes a long way. The opportunities for young people and the expectations of young people about their future concern us enormously. She is right that the only way to tackle that is across government.

[Lord Watson of Invergowrie (Lab)]

My Lords, the Government’s milestones are very much to be welcomed as steps towards progress in the broader strategy over the years ahead. It is somewhat depressing to find—maybe not surprisingly from the Conservatives but more so from the Liberal Democrats—the dismissive tone saying, “You’ll never achieve those aims. They are quite unrealistic”. Surely it is far better to be overambitious than underambitious. The previous Government set targets—I cannot remember what they were called—in a number of areas. They were going to be met anyway and were not stretching. These are stretching milestones and that is important, particularly in the housebuilding programme—albeit there is a need to change the planning system—and in getting three-quarters of five year-olds school-ready, which is not the case at the moment.

My final point is one I am less happy about. The 13,000 new police officers, special constables and PCSOs, with an emphasis on community policing, are very much to be welcomed, but does my noble friend agree that the comments immediately afterwards by the Metropolitan Police Commissioner that he was set to cut police jobs were at best unhelpful—perhaps they were a bargaining chip—and could undermine that process? Can she assure me that Home Office Ministers will meet the commissioner to make sure that this does not undermine the Government’s aims in this area?

[Baroness Smith of Basildon (Lab)]

My noble friend is right; I suspect the comments may have been perhaps to influence an upcoming spending review. We are absolutely committed to seeing more police officers. I remember when the last Labour Government introduced police and community support officers—named officers in communities—and going to a public meeting in my constituency where they were dismissed by so many as “plastic policemen”, which was quite an insult. One year later, the praise for those officers was off the scale, because they were known to the local communities and their presence was reassuring and had a real impact. We remain committed to that and will seek to deliver it.

My noble friend is right about being ambitious. One thing that worries me about the last Government—or Governments, in a sense, because we had several Prime Ministers—is that people became disillusioned with politics and are now very cynical about seeing politics and political decisions being a force for good. We will do everything we can to meet the ambitions that the country had for us and we have for the people of this country. We know that that these targets are ambitious; they are not targets that will be easy to meet—there would be no point in saying that—but we are determined to meet them, because it is what the country deserves.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the noble Baroness, Lady Finn, said that few would disagree with the target to grow the economy. However, as Greens we disagree, because we think that the economy should be there to serve people, to deliver a decent, secure life for everybody and care for our natural world, rather than have the Government directed towards the artificial figure of GDP, which is so unequally distributed. With regard to that unequal distribution, I ask the Minister about the first milestone:

“Raising living standards in every part of the United Kingdom, so working people have more money in their pocket”.


Why are the Government explicitly excluding children from having more money be spent on them? Why are the Government explicitly excluding pensioners, most of whom are not working, from this first milestone? Why are the Government excluding those with severe disabilities and illnesses, who may not be able to work? Why are they not included in this milestone?

[Baroness Smith of Basildon (Lab)]

If that is the best that the noble Baroness can do, I think that the Green Party will be disappointed by her interventions. Those people are not being excluded, but people who get pay packets are working people, which is why the milestone references working people. If she looks at the other measures that we have about child poverty, the triple lock and support for pensioners, she will see that all those are people for whom we want economic growth. I really am amazed that the noble Baroness thinks that economic growth can come only at the expense of the environment. I do not know whether she was here earlier today when I was talking about how we can have better houses, more houses and homes for people, and a better environment. The two are not mutually exclusive. I am disappointed, because I have to disagree with her: we want economic growth for the benefit of the country and the environment.

[Lord Hendy (Lab)]

My Lords, my question also relates to the first of the six admirable milestones, on having higher

“living standards in every part of the United Kingdom”.

I looked at the document to see how that was to be achieved and saw three bullet points on page 22, the first of which is:

“Deliver growth by working in partnership with businesses”.


Of course, one understands that higher living standards cannot be achieved without working in partnership with businesses, but I was a little troubled by the fact that there was no reference to trade unions or the extension of collective bargaining. Does my noble friend agree that there is no possibility of improving the living standards of the 30 million employees and 4.25 million self-employed workers without the intervention of trade unions and the extension of collective bargaining?

[Baroness Smith of Basildon (Lab)]

As a member of a trade union myself, obviously I welcome the role of trade unions in business and working in partnership with business, and the benefits that brings to both, but I do not think that is something missing out here. What is focused on here is working in partnership and making sure that

“every nation and region realises its full potential”,

as well as driving

“innovation, investment and the adoption of technology to seize the opportunities … from artificial intelligence to net zero”,

to help

“people get a job, stay in work and progress in their careers”.

The trade union movement would sign up to all those, I would expect, because it wants the best for its workers, as we do as well.

[Earl Russell (LD)]

From these Benches, I welcome the Government’s progress in making the UK a clean energy superpower. We really welcome the change of tone from the previous Government and the progress that has been made already on onshore solar and removing the de facto ban on onshore wind, as well as the work done on the Crown Estate and in the Great British Energy Bill. Obviously, renewable energy brings us energy security and will help to bring down bills. We welcome also the power to decarbonise power generation by 2030. NESO has clearly said that this is a challenging target, but it is one that we welcome.

I want to make three or four brief points. First, we are still concerned on these Benches about Labour having cut its own budget for environmental matters prior to the general election. A lot needs to be done with urgency and at scale, and I worry that the budget that Labour has available to do all these things is stretched too thinly.

My second point is that this Government need to work to improve their communications and take people with them on this journey, because it is so important. It goes beyond the Labour Party and this Government; our society depends on it. It needs to be communicated and we have to take society with us. That means doing things not just top down but bottom up. It means having citizens’ assemblies, talking to people and cutting our energy bills early on.

[Baroness Smith of Basildon (Lab)]

I thank the noble Earl for his welcome for this. He has an idea of the broad-brush overview of the policies. Yes, the Budget situation is very challenging; it is more challenging than we anticipated. My noble friend Lord Livermore is sitting next to me, and I am sure he will not mind my repeating that it was very difficult for us to have to address the £22 billion black hole in the current year’s spending. Even the OBR did not know about it. It is a challenging financial situation.

I concur with the noble Earl: improving communications and communicating policies are really important. As politicians we too often talk in numbers and matrices, and we sound very boring and disconnected. I have to say that I am quite emotional about a number of the issues in this document, because improving people’s lives and their environments, giving them opportunities and ensuring that healthcare is there when they need it and they feel safter in their streets are things that strike at the heart of what every citizen wants for themselves and their families. I entirely concur with the noble Earl’s point and thank him for his comments.