Permanent Secretaries: Appointment and Removal (Constitution Committee Report)

Baroness Stuart of Edgbaston Excerpts

Thursday 9th May 2024 Grand Committee

[Baroness Stuart of Edgbaston (CB)]

My Lords, I am very grateful for this thoughtful report. I am grateful to the committee for having asked the Civil Service Commission to give evidence to it. As the First Civil Service Commissioner, I lead the statutory independent commission that provides assurance that appointment into the Civil Service is on merit, after fair and open competition. I take on board the comments from the noble Lord, Lord Maude, about how we define merit. The commission regulates recruitment into the Civil Service and hears appeals from civil servants under the Civil Service Code. We play a unique role in the recruitment landscape and bring external expertise, acting as one of the checks and balances to the Government. We also provide confidence that recruitment is driven by candidates’ ability to do the job, wherever they may come from.

In my role as the First Civil Service Commissioner, I chair the recruitment panels for the appointment of Permanent Secretaries. The unique arrangements for this are set out in our Recruitment Principles. Throughout the appointments process, we attach great importance to Ministers being involved at the outset and through the various stages. Ministers must give their views on the job specification and person specification, and agree on the panel. They can meet all the shortlisted candidates, with the commission present, to give their views. However, the decision on which candidates meet the criteria rests with the independent panel, and the final choice of whom to appoint as a Permanent Secretary is for the Prime Minister. It is worth noting that, for other competitions for lower senior Civil Service grades, the panel not only arrives at a conclusion as to who is appointable but produces a merit order of those appointable candidates.

We agree with the committee that this balance of involvement is about right but that more must be done to make sure Ministers are aware of the ways in which they can be appropriately and rightly involved in these appointments. These are the most important public service leadership roles in the country. As a result of appearing before the committee and the concerns raised, the Deputy Prime Minister and I wrote to all Permanent Secretaries and ministerial offices in April this year outlining the existing process, and as a reminder that there is clarity on where Ministers could and should be appropriately involved.

We are proud of our permanent Civil Service in this country, which exists to serve the Government of the day. I like to think that what we have is an impartial Civil Service. I have my doubts whether such a thing as it being non-political—with a small “p”—is possible, but it is impartiality and a commitment to the Government of the day which are important.

An effective Civil Service must continue to develop its own people, as well as recruit new talent from outside to bring in new skills. The commission plays a significant part here. We regulate external appointments into the Civil Service and, by virtue of the senior appointments protocol, recruitment at director-general level, which is the level below Permanent Secretary. I welcome the Minister’s commitment to publication of a revised Civil Servants Senior Appointments Protocol in the near future. The independence of the commission is a critical part of how the most senior roles in the Civil Service are recruited on merit, following that open and fair competition.

I also sit on the Senior Leadership Committee in my role as the First Civil Service Commissioner. I agree with the committee that it is important to codify and clarify the remit of the SLC and the first commissioner’s role on it. I am pleased that this work is under way, and look forward to its publication shortly. I also believe that the SLC membership should always include the Government lead NED as a further source of external cross-government expertise.

We believe that there are major benefits to external recruitment, testing the market for the skills the Civil Service needs and refreshing the talent available to serve the country. The commission itself has seen the benefits of recruiting externally by default, but some departments would benefit from embracing “external by default” a bit more enthusiastically.

I share with the Committee that the commission will be carrying out a thematic review into the rigour with which the external by default policy is applied, and we are doing this with the agreement of the Minister for the Cabinet Office. This will be a root-and-branch review, intended to look at the premise of external by default, how it is currently delivered and where there are still opportunities to be realised by recruiting people from outside into the Civil Service. We will be working closely with the Government People Group, which is responsible for Civil Service HR. I believe this is an excellent way to use the unique regulatory perspective of the commission and our 14 commissioners, who come from a wide range of professional backgrounds, including the private sector and the wider public sector.

The commission is currently responsible for entry into the Civil Service. Under the existing arrangements, we play no part in exit. I am pleased that our secretariat also serves the Advisory Committee on Business Appointments, which is chaired by the noble Lord, Lord Pickles. The commission welcomes the work under way by the Government and the noble Lord on reforms to the business appointment rules. If there are implications for the commission’s own regulatory work, we will respond to those.

The commission is the appellate body for complaints from civil servants under the Civil Service Code. The code itself is owned by the Cabinet Office. We take this role seriously. Now that the full results of the people survey are available to us, we have written to all Permanent Secretaries in Scotland, Wales and England in order to engage in outreach with their departments over the coming year. We will ask each department for a list of the department’s nominated officers, details on the number of code complaints that the department has received, and the number of code complaints that have been upheld by the department. We are keen to ensure that civil servants understand the provisions of the code and are aware of the ways in which they can make a complaint, and that adequate processes are in place within departments.

I wish to take this moment to place on record my thanks to the hard-working commissioners and staff of the commission, who have in the past year regulated more than 90,000 appointments into the Civil Service and chaired 229 senior Civil Service competitions. I thank the committee for having been the spark for two useful commission initiatives and for giving us the impetus to do them in a timely manner.