Plan for Change: Milestones for Mission-led Government

Lord Newby Excerpts

Thursday 12th December 2024 Lords Chamber

[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.