It is a pleasure to follow the hon. Member for North Swindon (Justin Tomlinson), who made a very interesting speech, to which I listened intently.
I wish to speak about reform of the civil service. A well-functioning civil service is exceptionally important to the effectiveness of any Government, and we must get it right. I was therefore interested to see the Government’s White Paper on reform of the civil service. Ministers must be able to rely on civil servants and to be able to drive their work forward. I was a civil servant for 16 years, between 1980 and 1997, in the Treasury. Some 10 years later I returned as a Minister, serving briefly in the Cabinet Office and the Department for Work and Pensions. So I have experience of fighting on both sides of the barricades, as it were.
I found that some aspects of the culture were unchanged in the 10 years that I was out of Whitehall, with some seemingly unchanged for 400 years. Coriolanus is told by Shakespeare to proceed by the procedure, and I
think that the culture of process over delivery is a long-lasting one in Whitehall. For example, in 2006 an official who was working on the forecasting of the number of immigrants who would come from eastern Europe said, “We went through all the right processes. What more could we have done?” That forecast was out 30-fold.
The good news is that we have a professional civil service that is largely free of corruption. I say “largely” because although we were all looking for more exchanges between the public and the private sector, those have sometimes engendered rather unfortunate behaviour. Our civil servants are also, by and large, intelligent and committed. The problems, however, are well rehearsed and some are mentioned in the Government’s White Paper. They include the fact that the civil service has a stronger capacity on policy than on delivery, which has been recognised as a problem in the British civil service since the Fulton report of 1968. In this White Paper, the Government say that only a third of projects are delivered on time and to budget. One point that they do not raise, but it is an issue, is the narrow social base and experience of civil servants, particularly senior officials. That leads to ignorance and naivety in areas of social policy. I noticed when I was a DWP Minister that I sometimes knew far more than my officials.
Other problems include: the lack of specialist expertise in project management, in contracting and commercial work, and in finance and in human resources—those are all key management delivery skills—a culture of irresponsibility; weakness in long-term and strategic thinking; poor oral and communication skills; a focus on managing inwards and upwards, rather than downwards and outwards; and, I am sorry to say, a loss of administrative skills and honesty. For example, when I was a Minister I had my electronic signature put on documents that I had not seen.
Does the Government’s White Paper address those issues? The answer is: up to a point. I notice that it is a document that calls for less bureaucracy, despite having three forewords. The proposal to have stronger management—the measure for pushing out the bottom 10% and boosting up the top 25%—is rather crude. I would have thought that a well-managed organisation would not need to use such crude management techniques. However, the Government note the importance of strengthening capabilities and of shared services, and they want to strengthen ministerial influence over senior appointments. I agree with what they are doing there, but I do not think that they are going far enough.
The approach of “open” policy making is extremely complex. Obviously, Ministers want to be able to source ideas from people other than Whitehall officials, but the neutrality of officials is also very important and we need to hold on to it. The Government are going wrong in cutting too far, there are too many new-fangled financial mechanisms, such as payment by results, which will be more expensive than gilts, and they have not addressed the narrow social base and the experience situation.
The crucial issue is accountability. Three basic types of accountability are possible in an organisation: hierarchical, market or democratic. In Whitehall, the most important of those is the democratic element. That means that Ministers can be responsible for policy and, if they are warned, for delivering failures, but that
otherwise officials must be responsible for delivery. I totally support the work that the Public Accounts Committee has been doing in that regard.
The negative needs a proactive solution. The Secretary of State should be able to appoint the permanent secretary from a shortlist that has been put together by the Appointments Commission. I had always thought that that was a good idea, but when I heard Lord O’Donnell, the previous Cabinet Secretary, say on Radio 4 that that was the one thing he did not want to happen, I knew that it was the lever that we must pull.
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