Departmental Overview, October 2018

Cabinet Office If you would like to know more about the National Audit Office’s CONTENTS Cabinet Office This overview summarises the work of the Cabinet Office including what it does, (NAO’s) work on the Cabinet Office, how much it costs, recent and planned changes and what to look out for across its please contact: main business areas and services. Siân Jones Director Cabinet Office and Cross‑Government, Value for Money Bookmarks Overview [email protected] About the Cabinet Office 0191 269 1889 How Overviewthe Cabinet Office is structured Where the Cabinet Office spends its money Paul Keane Managing public money Major programmes and developments Director Cabinet Office, Exiting the European Union Financial Audit Part One Cross-government functions [email protected] Cross-government functions: Commercial 020 7798 7122 Cross-government functions: Human resources and civil service capability Cross-government functions: Digital Part Two About the Cabinet Office How the Cabinet Office Where the Cabinet Office If you are interested in the NAO’s Accountability: departmental performance reporting is structured spends its money Part Three work and support for Parliament more What to look out for widely, please contact:

[email protected] 020 7798 7665

Managing public money Major programmes Exiting the and developments European Union The National Audit Office scrutinises public spending for Parliament and is independent of government. The Comptroller and Auditor General (C&AG), Sir Amyas Morse KCB, is an Officer of the House of Commons and leads the NAO. The C&AG certifies the PART ONE PART TWO PART THREE accounts of all government departments and many other public sector bodies. He has statutory authority Cross-government Performance What to to examine and report to Parliament on whether departments and the bodies they fund, nationally functions reporting look out for and locally, have used their resources efficiently, effectively, and with economy. The C&AG does this through a range of outputs including value-for-money reports on matters of public interest; investigations to establish the underlying facts in circumstances where

concerns have been raised by others or observed Cabinet Office through our wider work; landscape reviews to aid | transparency; and good‑practice guides. Our work ensures that those responsible for the use of public money are held to account and helps government to improve public services, leading to audited savings of £741 million in 2017.

Design & Production by NAO External Relations DP Ref: 006108-001 Departmental Overview 2018

© National Audit Office 2018 2 OVERVIEW CONTENTS About the Cabinet Office

The Cabinet Office’s purpose The Cabinet Office has three main objectives, set out in its single departmental plan: is to support the Prime Minister and Cabinet and ensure that government runs effectively. Alongside HM Treasury, Maintain the integrity of the Support the design and Ensure the delivery of the finest it forms the government’s Union, coordinate the security implementation of public services by attracting corporate centre. As a central of the realm and sustain a HM Government’s policies and and developing the best department, the Cabinet Office flourishing democracy the Prime Minister’s priorities public servants and leading a number of cross-government performs various strategic This includes: This includes: and coordinating functions efficiency programmes – in particular, overseeing • policy on electoral, constitutional • establishing, monitoring and This includes: how departments implement and parliamentary reform; implementing the government’s Cabinet decisions and the strategic priorities; • overseeing the civil service • national security strategy as a whole; and Prime Minister’s priorities. and responses to national • supporting the Cabinet and security threats; and Cabinet committees; setting policy and controls The Cabinet Office also has • The Cabinet Office has three main objectives, set out in its single departmental plan: to improve efficiency across responsibility for key strategic • 1.international Maintain the integrity ofpolicy the Union, coordinate the security of the realm and •sustain aEU flourishing democracy exit work (see page 8); and This includes: government (largely carried out policy areas such as across government. policy on electoral, constitutional and parliamentary reform; through 13 cross‑government national security and EU national security strategy and responses to national security threats; and • coordinating the government’s international policy across government. legislative programme. functions – see page 9). exit negotiations, and 2. Support the design and implementation of HM Government’s policies and the Prime Minister’s priorities for providing This includes: establishing, monitoring and implementing the government’s strategic priorities; direction to supporting the Cabinet and Cabinet committees; EU exit work (see page 8); and departments coordinating the government’s legislative programme. to improve 3. Ensure the delivery of the finest public services by attracting and developing the best public servants and leading a number of cross-government efficiency programmes This includes: how overseeing the civil service as a whole; and they operate setting policy and controls to improve efficiency across government (largely carried out through 13 cross‑government functions – see page 9). (for example, by leading Cabinet Office

on civil service, | commercial and

digital initiatives). Source: Cabinet Office, Single Departmental Plan, (updated 23 May 2018) Departmental Overview 2018

3 OVERVIEW CONTENTS How the Cabinet Office is structured

The Cabinet Office organises its 1. Maintain the integrity of the Union, security and democracy directorates, groups and functions These Cabinet Office groups have broad strategic responsibilities for national security concerns and constitutional issues (for example, elec- according to its three departmental Maintain the integrity of the Union, Supporttions, devolution the and parliamentary reform).delivery of the Improve the efficiency of government security and democracy government’sConstitution Group programme and objectives (see left). The Cabinet Office’s Government Security Group These groups and units are responsible for the Prime Minister’s prioritiesIntelligence and Security Committee structure also includes Corporate These Cabinet Office groups have Joint Intelligence Organisation government-wide civil service and efficiency Services such as finance and human broad strategic responsibilities for national TheseNational Security parts Secretariat of the Cabinet Office are initiatives. The Cabinet Office houses several Elections security concerns and constitutional issues largely responsible for cross‑departmental cross-government functions (see page 9), resources, which ensure the effective Returning officers’ expenses for England and Wales are paid from the (for example, elections, devolution and coordinationCabinet Office (for example, Europe Unit which provide expert support and skills running of the Department. parliamentary reform). on2. Support EU negotiations the delivery of the government’s and Economic programme and development in specialist areas. the Prime Minister’s priorities DomesticThese parts of theSecretariat Cabinet Office arefor largely domestic responsible policies), for cross‑de- • Constitution Group aspartmental well ascoordination tracking (for example, progress Europe Uniton on government EU negotiations • Civil Service Group prioritiesand Economic (Implementation Unit).and Domestic Secretariat for domestic policies), as well as Government Security Group tracking progress on government priorities (Implementation Unit). Civil Service Pensions • Economic and Domestic Secretariat • •Europe EconomicUnit (see page 8 )and Domestic Secretariat • Intelligence and Security Committee Government in Parliament Group • Commercial Models •Honours Europe and Appointments Unit (see page 8) • Joint Intelligence Organisation Implementation Unit • Government Shared Services Office of the Parliamentary Counsel •Prime Minister’sGovernment Office in Parliament Group • National Security Secretariat Private Office Group • Public Bodies Reform •3. ImproveHonours the efficiency and Appointments of government These groups and units are responsible for government-wide civil Cross-government functions: service and efficiency initiatives. The Cabinet Office houses several Implementation Unit Civil Service Human Resources Elections •cross-government functions (see page 9), which provide expert support • and skills development in specialist areas. Returning officers’ expenses for •Civil ServiceOffice Group of the Parliamentary Counsel Government Commercial Function Civil Service Pensions • England and Wales are paid from the Commercial Models Prime Minister’s Office Cabinet Office •Government Shared Services • Government Communications Public Bodies Reform •Cross-government Private functions:Office Group • Government Digital Service Civil Service Human Resources Government Commercial Function • Fraud, Error, Debt and Grants Government Communications Government Digital Service • Office of Government Property Fraud, Error, Debt and Grants Government Security Function Office of Government Property • Government Security Function • Infrastructure and Projects Authority

Infrastructure and Projects Authority (jointly with HM (jointly with HM Treasury) Cabinet Office Treasury) | Departmental Overview 2018 Source: Cabinet Office, Accounting Officer System Statement 2018 4 OVERVIEW CONTENTS Where the Cabinet Office spends its money

The Cabinet Office has a smaller Cabinet Offi ce net outturn, 2017-18 budget than most departments, in part because it has fewer delivery responsibilities. Some large areas of Improve the effi ciency spend, such as election costs, are of government – distributed through the Cabinet Office £188m and do not constitute the Department’s own direct spending.

Support the delivery Costs relating to of the government’s A chart showing Cabinet Office net outturn, 2017-18 liquidation of Carillion – programme and the £150m4 Prime Minister’s priorities – £54m

Cabinet Office

£684m1

Other costs – £84m2 Elections – £117m 3

Maintain the integrity of the Union, security and democracy – £91m Cabinet Office |

Notes 1 Expenditure fi gures do not include the Crown Commercial Service (CCS), which operates as a trading fund. CCS had turnover of £75 million in 2017-18. 2 Other costs include costs to ensure the effective running of the Department and Annually Managed Expenditure (AME). 3 Election costs are disclosed separately to those under departmental objectives as they are funded directly from Parliament through non-voted expenditure. 4 Payment of £150 million was made to the Offi cial Receiver in relation to the liquidation of Carillion plc (see page 10).

Sources: Cabinet Office,Annual Report and Accounts 2017-18, Crown Commercial Service, Annual Report and Accounts 2017-18 Departmental Overview 2018

5 OVERVIEW CONTENTS Managing public money

Departmental spending Findings from Cabinet Office net outturn increased by £238 million (53%) between the audit of the 2016‑17 and 2017‑18. The main reasons for the increase are: Cabinet Office’s • funding of £150 million was provided to the Official Receiver in relation to the 2017‑18 accounts liquidation of Carillion plc (see page 10); The Comptroller and • election costs increased by £69 million, mainly due to the June 2017 UK Auditor General certified general election; and the Cabinet Office’s 2017-18 Government-funded accounts with a clean audit • spend on departmental objective 2: Support the delivery of the government’s inquiries programme and the Prime Minister’s priorities increased by £9 million, including opinion on 19 July 2018, costs of setting up the Grenfell Tower fire inquiryand the new Geospatial In May 2018, the National Audit five days before Parliament’s Commission (which promotes better use of UK government mapping data). Office’sInvestigation into summer recess. Last year, government‑funded inquiries was the Cabinet Office published Source: Cabinet Office,Annual Report and Accounts 2017-18 published. This report examined its accounts after the summer 10 completed inquiries and found a recess. It subsequently lack of evidence that departments started to improve its finance had consistently monitored the function’s capability, systems costs and progress of inquiries. and processes.

The Government’s shared services programme On average, inquiries that have However, this work is not yet Departments and other government bodies use shared service centres concluded since 2005 took complete. For example, after to reduce costs by sharing back-office services such as finance, human 40 months to complete. moving its own back‑office resources and procurement. The Cabinet Office launched a new shared services services to SSCL’s ‘single strategy in 2018, which forecasts savings of £300 million from further adoption of operating platform’ in shared services across government. May 2017, some issues The Cabinet Office part-owns and oversees a shared services centre, run by were identified concerning Shared Services Connected Limited (SSCL). This serves a number of government the treatment of VAT. A departments and bodies including the Department for Work & Pensions and the HM Revenue & Customs audit Cabinet Office

highlighted several areas that | Ministry of Justice. While work continues to improve SSCL’s internal controls, SSCL’s Government-funded inquiries auditor qualified its report on the operating effectiveness of those controls, as it In May 2018, the National Audit Office’s Investigation into government‑funded inquiriesrequire improvement. was published. This report examined 10 completed inquiries and found a lack of evidence that departments had consistently monitored the costs and progress of inquiries. On average, inquiries that have concluded since also did the previous year. 2005 took 40 months to complete. Findings from the audit of the Cabinet Office’s 2017‑18 accounts The Comptroller and Auditor General certified the Cabinet Office’s 2017-18 accounts with a clean audit opinion on 19 July 2018, five days before Parliament’s summer recess. Last year, the Cabinet Office published its accounts after the summer recess. It subsequently started to improve its finance function’s capabil- ity, systems and processes. However, this work is not yet complete. For example, after moving its own back‑office services to SSCL’s ‘single operating platform’ in May 2017, some issues Departmental Overview 2018 were identified concerning the treatment of VAT. A HM Revenue & Customs audit highlighted several areas that require improvement. 6 OVERVIEW CONTENTS Major programmes and developments

Cabinet Office major projects Delivery Confidence Assessment of programmes led by Cabinet Office Unlike other departments, the Cabinet Office does not deliver many programmes 2015-16 2016-17 2017-18 Projects itself as its main activities are policy coordination and broad strategy-setting. Foxhound A secure cross-government IT programme for departments to manage sensitive The Cabinet Office does lead the Amber Amber Amber-green national security information. delivery of eight major government projects (out of the 133 projects across Gov.UK Verify government designated as ‘major A system providing a single login for people using government digital services Amber-green Amber-green Amber projects’), with a forecast whole-life cost A diagram showing del;ivery confidence assessmentof programmes led by the cabinet(for example, applying for Universal Credit or filing a self-assessment tax return). of £3.8 billion. Most of these projects office are to develop digital, shared services, ISSC2 property or commercial capability A shared services centre for departments to save costs on finance, procurement, Amber-red Amber Amber across government. payroll and human resources functions.

Government Hubs Co-location of multiple departments in ‘hub’ buildings. IPA ratings, 2018 Amber-red Amber Amber

8 projects Commercial Capability To improve the commercial skills of the civil service. Amber-red Amber Amber

161 New Property Model To create the Government Property Agency. Amber Amber-red 6 amber 1 amber-green Government as a Platform

1 amber-red 2 projects To develop common platforms for digital services that can be used by were rated for the first time in 2017-18: Amber departments to avoid duplication of effort. For example, GOV.UK Pay takes payments online and GOV.UK Notify sends text messages, emails and letters. The Infrastructure and Projects Cabinet Office Common | Government Technology Common Technology Services Authority (IPA) ratings of delivery as a Platform Services confidence for the eight projects To support departments to adopt modern, flexible and secure technology. Amber For example, GovWifi is a single Wi-Fi login for government departments. appear on the right. Six of the projects are rated amber in 2018, A diagram showing del;ivery confidence assessmentof programmes led by the cabinet one as amber-red, and one Note office as amber‑green. 1 ISSC2 is now no longer classed as a major project by the IPA. Departmental Overview 2018 Source: Infrastructure and Projects Authority, Annual Report on Major Projects 2017-18 7 OVERVIEW CONTENTS Exiting the European Union

In March 2019 the United Kingdom is set to leave the European Union Cabinet Office EU exit workstreams (EU). The UK government has instructed departments to make the In April 2018, DExEU set out a summary of the workstreams necessary arrangements for EU exit. The 2018 Spring Statement under way across government to implement exit. increased the Cabinet Office’s budget for 2018-19 by £49.4 million to fund additional exit‑related activities in 2018-19. The Cabinet Office has 10 workstreams relating to exit, including: In March 2019 the United Kingdom is set to leave the European Union (EU). The UK government has instructed departments to make the necessary arrangements for EU exit. The 2018 Spring Statement increased the• Cabinetthree Office’s workstreams budget for focus on the devolved 2018-19 by £49.4 million to fund additional exit‑related activitiesadministrations in 2018-19. and include developing new UK The Cabinet Office’s role in exiting the EU is to: The Cabinet Office’s role in exiting the EU is to: advise the Prime Minister and Cabinet on negotiating strategy;frameworks to replace (where appropriate) the draft the legislation that implements Brexit; structures currently created by EU law; • advise the Prime Minister and Cabinet on negotiating strategy; provide specialist support to departments as they finalise exit plans; help the rest of government prepare and execute the exit strategy; and draft the legislation that implements Brexit; coordinate with devolved authorities. • public procurement; • The Cabinet Office’s Europe Unit supports the Prime Minister and Cabinet in nego- tiating a successful and orderly exit from the EU and helps coordinate exit-related • provide specialist support to departments as they finalise exit plans; activity within government. • civil contingencies; There have been key changes to the Europe Unit’s staffing and role over the past year: civil service nationality rules; • help the rest of government prepare and execute the exit strategy; and In September 2017, the Prime Minister’s Europe Adviser• transferred to the Europe Unit from the Department for Exiting the European Union (DExEU). coordinate with devolved authorities. In July 2018, the Prime Minister made a ministerial• statement electoral changing the division reform; and • of functions between DExEU and the Cabinet Office’s Europe Unit. This statement clarified that the Europe Unit has overall responsibility for preparing and conducting negotiations with the EU, drawing on support from DExEU• anddigital other departments regulation, for example, whether the UK will where required. adopt an EU framework enabling businesses and Cabinet Office EU exit workstreams In April 2018, DExEU set out a summary of the workstreamscitizens under way across to use electronic IDs across borders. The Cabinet Office’s Europe Unit supports the Prime Minister and Cabinet in negotiating a successfulgovernment to implement exit.and The Cabinet Office has 10 workstreams relating to exit, including: orderly exit from the EU and helps coordinate exit-related activity within government. three workstreams focus on the devolved administrations and include developing new UK frameworks to replace (where appropriate) the structures currently created by EU law; There have been key changes to the Europe Unit’s staffing and role over the past year: public procurement; civil contingencies; In September 2017, the Prime Minister’s Europe Adviser transferred to the civil service nationality rules; • electoral reform; and Europe Unit from the Department for Exiting the European Union (DExEU). digital regulation, for example, whether the UK will adopt an EU framework enabling businesses and citizens to use • In July 2018, the Prime Minister made a ministerial statement changing the Cabinet Office

division of functions between DExEU and the Cabinet Office’s Europe Unit. | This statement clarified that the Europe Unit has overall responsibility for preparing and conducting negotiations with the EU, drawing on support from DExEU and other departments where required. Departmental Overview 2018

8 PART ONE CONTENTS Cross-government functions 1/4

The 13 cross-government functions provide specialised skills and services across the civil Subsequent pages examine developments in three particular functions: commercial; digital; service. They provide central leadership, set professional standards and promote specialist and human resources (in terms of civil service capability). These functions have been priority The Cabinet Office leads seven functions and co-leads the project delivery function with HM career development. More than half of the functions are located in the Cabinet Office, as areasTreasury: for the Cabinet Office as it seeks to transform government operations and make them 1. Commercial part of its work to improve efficiency across government. moreSupports theefficient. procurement of goods and services and management of contracts across government. 2. Digital Supports the design, build and running of government digital services, and the technology, infrastructure and data which support those services. The Cabinet Office leads seven functions and co-leads the project delivery function with 3.HM Communications Treasury: The other five functions are: Provides coordinated communications to help deliver government programmes. 4. Human resources Provides common human resources policies and services to support the whole of the civil service. Finance Digital Commercial 5. Proper- ty Aims to make sure public Supports the design,Aims to improve build andgovernment’s running management of its estate, Supports the procurement of goods and money is spent efficiently of government includingdigital services,co‑locating offices and the and services where possible. services and management of contracts 6. Fraud, error, debt and grants and effectively. technology, infrastructure and data across government. Aims to identify and reduce finan- cial losses through fraud which support thoseand error, services. and to improve overdue debt management and the effectiveness of grants. 7. Security Responsible for setting government’s security policy framework and security standards to be met by departments. 8. Project delivery Legal Cabinet Office jointly leads project delivery with HM Treasury. Provides legal advice The function aims to improve government’s ability Human resources across the civil service. Communications to deliver major projects through assurance, project Provides commonstandards, human insight resources and advice. Provides coordinated communications to policies and servicesThe other to five support the functions are: help deliver government programmes. whole of the civilFi- service. nance Aims to make sure public money is spent ef- ficiently and effectively. Corporate finance Legal Manages government’s Provides legal advice across the civil service. interventions in the private Corporate finance sector to secure best Manages government’s interven- value for the taxpayer. Property Fraud, error, debt and grants tions in the private sec- tor to secure best Aims to improve government’s Aims to identify and reduce financial value for the taxpayer. management of its estate, including losses through fraud and error, and to Internal au- dit co‑locating offices and services improve overdue debt management and Provides in-house internal audit services Internal audit where possible. the effectiveness of grants. across the civil service. Provides in-house internal Analy- sis audit services across the

Aims to support government decision‑making with best‑practice re- civil service. Cabinet Office

search and analysis services. |

Project delivery Security Cabinet Office jointly leads project delivery Responsible for setting government’s with HM Treasury. The function aims to Analysis security policy framework and security improve government’s ability to deliver Aims to support government standards to be met by departments. major projects through assurance, project decision‑making with standards, insight and advice. best‑practice research and analysis services. Departmental Overview 2018

9 PART ONE CONTENTS Cross-government functions: Commercial 2/4

The Government Commercial In 2017 the function created the The most significant recent development

function supports Government Commercial Organisation in the commercial area was the collapse procurement and contract (GCO) to act as the central employer of Carillion in January 2018 (see below). 4,000 management across of senior commercial staff at Grade 7 Sincethen, there has been sustained civil servants government. It includes around 4,000 civil and above. interest in improving government’s servants who are commercial specialists. commercial data and making some it available to the public.

Collapse of Carillion On 25 June 2018, the Chancellor of Estimated UK public sector spending with Carillion in 2016-17 Collapse of Carillion the Duchy of Lancaster announced: 1 On 15 JanuaryOn 15 January 2018 2018 Carillion,Carillion, government’s sixth largest supplier, filed for insolvency. To ensure continuity of public service, the Cabinet Office coordinated contingencyCarillion planning reported and £1,719 million of UK public sector revenue in 2016 provided £150 million to the Insolvency Service so it could continue to operate many of Carillion’s contracts. This prevented disruption to public services, such as cleaning of schools government’sand hospitals. sixth largest supplier, Starting with our most Calls for increased transparency of government contracting filed for insolvency.Following Carillion’s collapse,To ensure there were callscontinuity for government to publish dataimportant to help the public understandcontracts, the extent ofwe outsourcing. will This would include contract values, contract lengths, Ministry of Defence2 of public performanceservice, data the and businessCabinet cases. Office increase transparency by On 25 June 2018, the Chancellor of the Duchy of Lancaster announced: £510m coordinated“Starting contingency with our most important planning contracts, we will increase transparencyrequiring by requiring a number a ofnumber key performance of indicators key to be published – such as response rates, on-time and provideddelivery and £150 customer million feedback to – so the that taxpayers can monitor outcomes, and track how their money is being spent. I think this is in the interest of government and suppliers alike. And we will look to make further transparency initiatives in the coming months.”performance indicators £372m Network Rail4 InsolvencyA diagram Service showing soEstimated it could UK public continuesector spending with Carillion in 2016-17to be published – such as Carillion reported £1,719 million of UK public sector revenue in 2016. to operate many of Carillion’s contracts. response rates, on-time This prevented disruption to public delivery and customer 2 services, such as cleaning of schools feedback – so that taxpayers HM Revenue & Customs £0.2m 420 British Transport Police4 £0.5m £287m NHS bodies in England3 and hospitals. can monitor outcomes, and contracts track how their money is British Museum4 £6m worth being spent. I think this is in HM Land Registry4 £10m £1.7bn Calls for increased transparency a year Department for Business, the interest of government £10m £140m Highways England4 of government contracting Energy & Industrial Strategy2

and suppliers alike. And we Foreign & Commonwealth Office2,3 £12m Following Carillion’s collapse, there £12m will look to make further 2 3 were calls for government to publish Home Office £135m Devolved government transparency initiatives in £75m data to help the public understand £79m

the coming months. Cabinet Office the extent of outsourcing. This would Ministry Education and | of Justice2 3 include contract values, contract schools in England lengths, performance data and Source: National Audit Office, Investigation into the government’s handling of the collapse of Carillion. business cases. Contracts held by Carillion are estimated from government spend data. See Figure 2 of the National Audit Office report for details Departmental Overview 2018

10 PART ONE CONTENTS Cross-government functions: Human resources and civil service capability 3/4

The Cabinet Office has acknowledged that it needs to improve civil service The Human Resources function is made up of more than skills and capability. The Civil Service Workforce Plan 2016–2020 sets out 3,500 people government’s priority areas for improving civil service skills and experience. It sees the creation of cross‑government functions and professions as a across government and is led by the Chief People Officer. key way of achieving this.

Cabinet Office staffing changes Skills needed for EU exit The Human Resources function is made up of more than 3,500 people across In 2017-18 thegovernment Cabinet and is led Office’s by the Chief People Officer. staff numbers increased by 1,792, In 2017 the centre of government identified five ‘priority’ departments almost doublingCabinet Office the staffingsize ofchanges the department’s workforce (from 2,708 that most needed support in meeting their skills needs. These were In 2017-18 the Cabinet Office’s staff numbers increased by 1,792, almost doubling in 2016-17 tothe size4,500 of the department’s in 2017-18). workforce However, (from 2,708 in 2016-17 many to 4,500of these in 2017- staff work in the Department for Exiting the EU, Department for Business, Energy other departments and are18). However, only manyformally of these staffemployed work in other departments by the andCabinet are only formally Office. & Industrial Strategy, Department for International Trade, Department for Digital, employed by the Cabinet Office. Culture, Media & Sport and the Department for Environment, Food & Rural Affairs. The reasons behind the Thestaff reasons increase behind the staff are: increase are: Civil Service Resourcing moved to the Cabinet Office from HM Revenue & Customs, The largest identified gaps were for policy skills. resulting in more than 1,000 Fast Streamers and more than 500 staff being • Civil Service Resourcingtransferred moved onto the Cabinet to the Office Cabinet payroll. Office from HM Revenue & Customs, resulting inMore more than 260 than commercial 1,000 specialists Fast were Streamersemployed by the new and Government more than 500 staff Breakdown of skills needs for new exit roles across the five Commercial Organisation (see page 10) being transferred onto the Cabinet Office payroll. priority departments The Cabinet Office has acknowledged that it needs to improve civil service skills and capability. The Civil Service Workforce Plan 2016–2020 sets out government’s • More than 260 commercialpriority areas forspecialists improving civil service were skills employedand experience. It sees by thethe creation new of Government Commercial Organisationcross‑government (see functions page and 10 professions). as a key way of achieving this. Skills needed for EU exit In 2017 the centre of government identified five ‘priority’ departments that most Policy: 70% needed support in meeting their skills needs. These were the Department for 2012-13 Exiting the EU, Department2,040 for Business, Energy & Industrial Strategy, Department for International Trade, Department for Digital, Culture, Media & Sport and the Department for Environment, Food & Rural Affairs. The largest identified gaps were for policy skills. 2013-14 2,327 A diagram showing a Breakdown of skills needs for new exit roles across the five priority departments 2014-15 2,472

2015-16 2,403 Other (eg corporate services): 15%

Project delivery: 10% Cabinet Office 2016-17 2,708 | Analyst: 5% Commercial: 1% Digital: 1% 2017-18 4,500 Note 1 Figures are rounded and do not sum to 100%. 01,000 2,000 3,000 4,000 5,000 Cabinet Office staff numbers Source: National Audit Office, Implementing the UK’s exit from the European Union. People and skills: The role of the centre of government. Based on National Audit Office analysis of Cabinet Office data,

Source: Cabinet Office, Annual Report and Accounts 2017-18 covering July 2016 to October 2017. See page 9 of the National Audit Office report for more details Departmental Overview 2018

11 PART ONE CONTENTS Cross-government functions: Digital 4/4

The Cabinet Office set up the Government Digital Service Verify Data Digital transformation (GDS) in 2011 to transform the provision of government The Cabinet Office developed the GDS has attempted to improve GDS produced the Government digital services. It has more than 500 Verify service to provide a single data sharing and use across Transformation Strategy full‑time staff. GDS has implemented a login to government digital services. government, but progress has in 2017 and oversees the been slow. Transformation Peer Group spend control mechanism to ensure that Demand for this service has been technology adopted by individual jointly with the Infrastructure lower than expected – by the • The Cabinet Office has created and Projects Authority. departments conforms to GDS standards end of March 2018, more than a Data Advisory Board and (service standards and technology two million people had created a announced it will appoint The National Audit Officereported codes of practice). Verify account to perform six million a Chief Data Officer, a role in 2017 on digital transformation GDS operates three major services: the transactions (an average of three vacant since 2015. across government. It concluded per user). Verify was launched with that GDS needed to be clear about UK government website GOV.UK; the The Cabinet Office set up the Government Digital Service (GDS) in 2011 to transform• the provisionGDS’s of government data policydigital services. and It has more identity assurance system Verify (see right); a targetthan 500 fullof‑ time25 million staff. GDS has usersimplemented by a spend2020. control mechanism to ensure that technology adopted by individual departments its role in digital transformation, conforms to GDS standards (service standards and technology codes of practice). governance responsibilities and strike a balance between and the GDS Academy (since 2014 this GDS operates three major services: the UK government website GOV.UK; the identity assurance system Verify (see right); and the GDS Academy The(since National 2014 this has Audit trained someOffice’s 6,500 staff).Digital moved to the Department for has trained some 6,500 staff). robust assurance and a more transformationVerify in government Digital, Culture, Media & Sport The Cabinet Office developed the Verify service to provide a single login to government digital services. consultative approach. reportDemand identified for this service has several been lower issuesthan expected – by the end of March 2018, more thanin two million April 2018. people had created a Verify account to hinderingperform six millionVerify’s transactions progress, (an average of three per user). Verify was launched with a target of 25 million users by 2020. The National Audit Office’s Digital transformation in government report identified several issues hindering Verify’s progress, including difficulty of includinguse for both difficultyusers and departments. of use for both In October 2018, the government announced that contracts with commercial identity providers had been signed for the next 18 months. After usersthat, publicand funding departments. for Verify would cease and it would become a private sector‑led model. Data In OctoberGDS has attempted 2018, to improve the data government sharing and use across government, but progress has been slow. The Cabinet Office has created a Data Advisory Board and announced it will appoint a Chief Data Officer, a announcedrole vacant since 2015. that contracts with GDS’s data policy and governance responsibilities moved to the Department for Digital, Culture, Media & commercialSport in April 2018. identity providers hadDigital been transformation signed for the next GDS produced the Government Transformation Strategy in 2017 and oversees the Transformation Peer Group 18 months.jointly with the Infrastructure After that, and Projects Authority. public funding for Verify would cease and it would become a private sector‑led model. Cabinet Office | Departmental Overview 2018

12 PART TWO CONTENTS Accountability: departmental performance reporting

It is difficult to get a complete picture of the department’s performance from the published

The Cabinet Office reports data on its performance against objectives in itssingle departmental plan (SDP), last performance data: updatedThe in May 2018.Cabinet All of the reported Office performance reports data under eachdata departmental on its objective performance are set out below. It is difficultagainst to get a complete objectives picture of the department’sin its single performance departmentalfrom the published performance plan data: one departmental objective, to support implementation of the Prime Minister’s and the one departmental objective, to support implementation of the Prime Minister’s and the government’s priorities, has • no published(SDP), performance last data updated at all; and in May 2018. All of the reported government’s priorities, has no published performance data at all; and the other two objectives have performance indicators which report on selected aspects of the broad objectives only. It is not madeperformance clear in the SDP how the data chosen indicatorsunder contribute each towards departmental the overall objectives. the other two objectives have performance indicators which report on selected Performanceobjective data reported inare the Cabinet set Office’s out singlebelow. departmental plan • 1. aspects of the broad objectives only. It is not made clear in the SDP how the chosen Maintain the integrity of the Union, coordinate the security of the realm and sustain a indicators contribute towards the overall objectives. flourishing democracy 2. Support the design and implementation of HM Government’s policies and the Prime Minister’s priorities 3. Ensure Performancethe delivery of the finest public data services reported by attracting and developingin the the Cabinetbest Office’s single departmental plan public servants and improving the efficiency of government

Maintain the integrity of the Union, coordinate Ensure the delivery of the finest public services by attracting and developing the best the security of the realm and sustain a public servants and improving the efficiency of government flourishing democracy UK ranking on Open Data Barometer Civil Service People Survey UK soft power rating Employee engagement index (%) 2017 75.72 Year Global world Overall score 2017 61 ranking (out of 100)

2016 75.67 2017 1 100 2016 59 2016 1 100 2015 75.61 2015 1 100 2015 58

Government spend with small- and medium-sized Public appointment diversity: women in enterprises (SMEs) public appointments Support the design and implementation Annual spend (£bn) Percentage of women in public appointments (%) Cabinet Office

of HM Government’s policies and the | Prime Minister’s priorities 2015-16 5.6 2016-17 49

No data published 2014-15 4.8 2013-14 34

Source: Cabinet Office,Single Departmental Plan, (updated 23 May 2018) Departmental Overview 2018

13 PART THREE CONTENTS What to look out for

01 02 03 Exit from the European Union The future of Verify Single departmental plans

In March 2019 the United Kingdom is set to The government announced in October 2018 that A challenge for the Cabinet Office is to ensure that leave the European Union. The UK government provider contracts for the Verify digital identity single departmental plans are used effectively has instructed departments to make the necessary assurance programme had been signed for the next across government as a mechanism for robust arrangements for exit. The 2018 Spring Statement 18 months. After that, public funding for Verify would business planning. increased the Cabinet Office’s budget for 2018-19 by cease and it would become a private sector-led model £49.4 million to fund additional exit-related activities in (see page 12). 2018-19 (see page 8). Cabinet Office | Departmental Overview 2018

14