The Future of the Civil Service

Baroness Hayter of Kentish Town Excerpts

Thursday 16th January 2014 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I, too, thank the—mellow—noble Lord, Lord Hennessy, my PhD supervisor, for introducing such an erudite debate. I am somewhat intimidated by having to follow more than a dozen former Ministers, former Cabinet and Permanent Secretaries and Peers with experience inside Number 10, as well as two professors, one former First Civil Service Commissioner and the Government’s lead non-executive. We also have the benefit of the Truth to Power report, the Civil Service Reform Plan and its one-year update, reports from the Institute for Government, the IPPR, the Liaison Committee, the Public Accounts Committee and our own Constitution Committee, and the annual reports of the noble Lord, Lord Browne; not forgetting the FDA’s own Delivering for the Nation. All these indicate a mood for change.

Despite being neither a former Minister nor a former Permanent Secretary, I want to reflect a third approach, that of consumers of government—especially given that, as Truth to Power says,

“citizens as consumers have hugely increased their demands and expectations of what Government should be able to deliver”.

Indeed, it is for the final user or taxpayer—who funds government—that this relationship between politicians and the service must be world class. People are unhappy when “few ministers or officials” are,

“held accountable when things go wrong”—

“things” which affect their universal credit or other bits of their lives—or when they see their taxes frittered away on expensive mistakes, which does happen. I, too, spent Christmas reading The Blunders of our Governments, which documents not just ministerial errors and the astonishing waste of public money but the often faulty relationship between policy and delivery, as well as the need for less churn, more niche expertise and changes in accountability.

The noble Lord, Lord Hennessy, has done us a major service. First, he quoted the words of the Prime Minister, who, despite being head of the whole service, has said little on this—worse, his odd criticism, such as saying that the service is the enemy of enterprise, has hardly helped relations. Secondly, the noble Lord has, in his inimitable style, recalled “the lustrous quality” of our,

“non-politically partisan public service, transferable from one Government to the next, along with its perpetual duty of speaking truth unto power”.

Indeed, the role of politicians should not be overlooked, as the noble Lord, Lord Norton, and other noble Lords emphasised today. The service does not work in a vacuum but as part of what the noble Lord, Lord Hennessy, calls, “the governing marriage” between temporary Ministers and permanent officials. Sadly, most of the bundle of reports concentrates only on the Civil Service, omitting what Ministers might do differently to make it more effective—whether in the complexity of laws or procedures, the lack of devolution or our constant demand for new skills to fulfil new tasks.

As has been acknowledged, our Civil Service is admired around the world. It is politically impartial, with core values of integrity, propriety and objectivity, and it has the ability to transfer its expertise and loyalty from one Government to the next. However, that does not mean that there is no need for change. In a fast-changing world, with new technologies and new forms of service delivery, the Civil Service itself wants to change, to meet the increasing demands of government and the higher expectations of the public. That means addressing skills gaps in procurement, accountability and performance management, the integration of corporate functions and better delivery of major projects. We need the best people to be recruited, trained and retained to deliver quality service and—yes—to be reflective of the population that they serve.

However, the Government’s progress report on the Civil Service capabilities plan gave it a red rating for lack of implementation, while the Jenkin committee—Jenkin junior—wrote of,

“increasing dysfunctionality in aspects of the Civil Service key skills”.

The Public Accounts Committee noted that commercial and contracting skills remain weak. There is a lack of leadership expertise, with only four of the 15 Permanent Secretaries of delivery departments having significant operational delivery or commercial experience. Processes for overseeing major projects lack teeth and are seemingly unable to stop ill conceived or poorly managed projects, while the MPA lacks power.

Some of the Government’s policies have merit, such as greater scrutiny of major projects, reduced turnover of senior responsible officers and integration of corporate functions. However, as the Minister for the Cabinet Office has admitted, the implementation of many of these reforms has been poor and slow to start. Meanwhile, the PAC claims:

“The existing accountability arrangements for permanent secretaries are inadequate”,

and that senior civil servants are not held accountable for poor performance, while good performance is not properly recognised.

There are challenges. Constancy of change is a feature of any large organisation, but the skills and attitudes of civil servants need to reflect the ongoing change challenge. There is a need to provide proper support for Ministers, including in their political role, from a high-functioning, responsive and sufficiently political office, while avoiding what the noble Lord, Lord Hennessy, calls the “politicisation” of the senior Civil Service when aligned with greater political input into the choosing of Permanent Secretaries, and the noble Lord’s fear of turning Whitehall into Washington. These issues are too serious to be undermined by overt denigration of the service—by what Truth to Power describes as,

“the vehemence of Ministers’ criticism of the Civil Service”,

or by scapegoating a few officials rather than addressing shortcomings in systems and culture. Morale is key to a high-functioning service, and we damage that at our peril.

The plea for a parliamentary commission from the noble Lord, Lord Hennessy, the chairs of 17 committees and the majority of noble Lords who have spoken today should be taken seriously. We remain open-minded, as we are still examining Civil Service reform as part of our policy review, while the timing of any such commission presents its own challenge. There are changes that need implementing in 2015 and we must be sure that any such commission would not distract from, or undermine, reform efforts either in this Parliament or the next. We have heard great words of wisdom today and we look forward to a similar response from the Minister.