Reform Annual Conference 2017

Chartered Accountants’ Hall Thursday 9 February 2017 One Moorgate Place 08.30 – 13.35 London EC2R 6EA #reform2017 @reformthinktank Contents

Programme 1

The Reform team: setting the agenda 2

To govern is to serve 4

Reinventing public services for citizens’ use 5

Government at your service 7

Whitehall’s stories of success 9

How will we pay for the welfare state? 11

Join us in 2017 13

Kindly sponsored by: Programme

08.30 – 08.55 Registration and breakfast

09.00 – 09.10 Welcome and introduction Andrew Haldenby, Director, Reform

09.10 – 09.15 Welcome by host Michael Izza, Chief Executive, The Institute of Chartered Accountants in England and Wales

09.15 – 09.20 Introduction to the Minister Andrew Haldenby, Director, Reform

09.20 – 09.55 Keynote speech Rt Hon Ben Gummer MP, Minister for the Cabinet Office and Paymaster General

10.00 – 11.00 Panel 1: Government services have taken recent, practical steps towards reforms that had digitalisation at Government at your service their core. These reforms have great potential to improve the efficiency of public services and their usability for citizens. This discussion will outline the possibilities presented by technological advancements, the challenges and the overall impacts on productivity and efficiency within public services. Jonathan Slater, Permanent Secretary, Department for Education Dr Ali Parsa, Founder and CEO, Babylon Health Professor the Baroness Wolf of Dulwich CBE, Sir Roy Griffiths Professor of Public Sector Management, King’s College London Daniel Searle, Chief Digital Officer, Hewlett Packard Enterprise Rt Hon Ben Gummer MP, Minister for the Cabinet Office and Paymaster General Chair: Andrew Haldenby, Director, Reform

11.00 – 11.20 Coffee break

11.25 – 12.35 Panel 2: Across central government, numerous departments have undergone substantial reform and Whitehall’s stories of success transformation. This panel will discuss case studies of success in Whitehall, and explore the lessons to be learnt for other services looking to reform. Bernard Jenkin MP, Chair, Public Administration and Constitutional Affairs Committee Jane Cunliffe, Director of Public Spending, HM Treasury Richard Bacon MP, Member, Public Accounts Committee Rt Hon Michael Gove MP, Former Secretary of State for Education and Former Secretary of State for Justice Chair: Charlotte Pickles, Deputy Director and Head of Research, Reform

12.35 – 13.30 Panel 3: In the light of uncertain public finances, the Government’s commitment to a welfare state and an How will we pay for the economy that works for everyone is under pressure. There remain big public finance questions welfare state? across health, social care, and pensions, in terms of both public and private payment. This discussion will seek answers to those questions and outline the challenges and opportunities for government to provide support to both the worst off in society and those “just about managing”. Rt Hon Steve Webb, Former Minister of State for Pensions Paul Johnson, Director, Institute for Fiscal Studies Kirsty McHugh, Chief Executive, Employment Related Services Association Sumita Shah, Regulatory Policy Manager, Public Sector, The Institute for Chartered Accountants in England and Wales Chair: William Mosseri-Marlio, Research Manager, Reform

13.30 – 13.35 Concluding remarks and finish Andrew Haldenby, Director, Reform

1 Annual Conference 2015 The Reform team: setting the agenda

2017 marks Reform’s 15th academic thinking. Daniel Searle 15 years in, the Reform birthday. I hope we have and Ali Parsa will explain how agenda has never been more succeeded in that time in digital technology can bring the relevant. I welcome your focusing attention on the ideas consumer revolution to public attendance today and look that will improve public services, services, with all of its forward to your close to the benefit of every citizen of implications for ease of use, engagement in our work our country, and keep them absence of bureaucracy, artificial throughout this Parliament. financially sustainable at the intelligence and falling costs. same time. Our third annual So much of the challenge of Andrew Haldenby conference today has exactly reform is implementation. For that Director, Reform that objective. reason, our second panel will @andrewhaldenby We are thrilled that Rt Hon Ben present examples of Whitehall Gummer MP, the Minister for the success in delivering reform in Cabinet Office, is able to give us practice. Bernard Jenkin MP and so much of his time. As well as Richard Bacon MP have overseen his keynote speech, Ben will join the Government’s work on civil our first panel, “government at service reform and efficiency for your service”. This follows his many years. Rt Hon Michael Gove speech to Reform in October MP led major reforms to the 2016 when he described Brexit Department of Education during as a “cry”, from voters, “about his time as Secretary of State. what they felt about the state of Jane Cunliffe oversees public government and their spending at the Treasury and will relationship with it”. He describe her work on the current explained: “if you were to ask the Efficiency Review in particular. public whether it feels served by As we prepared this government, they will tell you conference, the Office for Budget that it is precisely the opposite. Responsibility projected that In too many of their interactions current entitlements to pensions with the state, the public is made and healthcare will require the to feel as though they are the next government to raise taxes servants of the government, by £84 billion, in today’s money, if rather than the other way the national debt is ever to return around.” (In this way Brexit has to the levels seen before the brought to the forefront the financial crisis. The third panel themes of personalisation and will directly address the question consumer choice that Tony of the affordability of the welfare Blair’s government promoted so state. Steve Webb considered excitingly in Reform’s early days.) these long-term costs as His fellow panel members will Pensions Minister. Paul Johnson explore this idea in detail. and Sumita Shah are experts on Jonathan Slater will give his public finances and the Whole of experience of successful reform Government Accounts in two departments of state respectively. Kirsty McHugh will (education and defence). Alison address welfare provided to Wolf will present the latest people below retirement age.

2 2 Andrew Haldenby Charlotte Pickles Louis Coiffait Ben Dobson Director Deputy Director and Head of Education Researcher Head of Research

Elaine Fischer Eleonora Harwich Charlotte Hamilton-Wright Alexander Hitchcock Research Assistant Researcher Events and Communications Senior Researcher Assistant

Ruby Holmes Ayla Kolakovich Kate Laycock William Mosseri-Marlio Research Assistant Finance and Office Manager Researcher Research Manager

Caroline Perry Olivia Sundberg Diez Emilie Sundorph Danail Vasilev Events and Communications Corporate Partners Researcher Research Assistant Manager and Fundraising Officer 3 To govern is to serve

Rt Hon Ben Gummer MP buildings, to antiquated working patterns, representation around the United Kingdom, in excessively hierarchical organisation so that public servants have a depth of structures, and with sub-optimal technology. experience of the public they serve. The By reducing the ability of our public servants Cabinet Office is currently reviewing the to work productively, we are compromising location of government agencies and their ability to serve the public. arms-length bodies, and will consider It is my simple ambition to reverse that relocating them where they could generate relationship. I want to see a revolution in local areas of expertise, support private the way we deliver public services – so that sector growth and enable a fairer people up and down our country feel that distribution of Civil Service expertise, To govern is to serve. That principle is in government is at their service, at every especially at a senior level. question. As the Prime Minister has single stage in the journey and at every And fourth, we will deliver all of these reflected, what we saw last June single moment of every interaction. changes – and more – while maintaining represented a direct challenge to the way The public has a right to expect the same this Government’s constant drive to identify that government operates and interacts quality of service from the government as and drive efficiencies in government, root with its citizens. Our collective faith in they do from private providers. Whether it is out fraud and error wherever possible, and democracy and the relationship between filling in a tax return online, paying council make considerable savings for the hard- the citizen has faltered. The referendum tax, claiming Universal Credit, applying for working taxpayer. vote is a message not only to leave the a grant of probate, visiting a government Every single member of the public European Union but to address that gap building or applying for a driving licence, the deserves a government that is responsive, that has come to separate those who citizen’s journey must be as efficient and accountable and effective – twenty-four govern and those whom we seek to serve. smooth as possible – all while maximising hours a day, every day of the week. As I If governing is to serve the people, it is value for money for the taxpayer and hope I am able to convey to you this the consistent delivery of effective and delivering our commitment to be the most morning, we will deliver our commitment to efficient public services for the citizen that transparent government in the world. transform the relationship between the underpins everything we do as a That is why I am today announcing four citizen and the state so that the latter government. But while the vital work to areas in which we will deliver the profound serves the former – not the other way improve and reform our everyday public transformational shift that is necessary to round. Only by doing so we will deliver the services will continue throughout this restore faith in our democracy. Prime Minister’s commitment to build a Parliament – building upon fantastic First, we will drive forward a renewed country that truly works for everyone. achievements by my predecessors – there focus on digital government as the means remains the question not simply of how to deliver services for the taxpayer. Today Rt Hon Ben Gummer MP public services work better for the user, we are publishing our Government Minister for the Cabinet Office and but what public service actually means to Transformation Strategy, outlining our Paymaster General the individual citizen. commitment to utilise the virtues of @ben4ipswich Indeed, this is a question that transcends technology to reshape government by the professionalism and dedication of the ensuring millions of people are able to thousands of committed civil servants I access online the services they need, have the privilege of working with every whenever they need. day. They go to work wanting to do things Alongside moving as many services for the better and for the public good. Yet online as possible, we must harness the that genuine spirit of public service is lost in value of open data as a means to innovate the opaque interface that currently exists and improve the range of services available between the citizen and the state. In too to the public and enhance the transparency many of their interactions with government, of government. We will appoint a new Chief the public is made to feel as though they Data Officer as well as assemble a Data are the servants of the government, rather Advisory Board in order to best align our than the other way around. efforts to make the best use of data across And it is not simply the user who is government and drive our open data and disadvantaged by this relationship. Public data transformation policies. servants are not able to fulfil their vocation. Third, we will work to ensure that our We have asked them to work in poor Civil Service has an equality of

4 Reinventing public services for citizens’ use

George Freeman MP of the British innovation and knowledge Louisa Rolfe economy which can best compete in the new markets of the developing world. We have world-class universities, a science and research base, and a globally competitive lead in key sectors like biopharmaceuticals, aerospace, and the digital economy, but we won’t unlock their full value without continuing to build a long-term strategy for skills, research, A truly global, entrepreneurial Britain will infrastructure, procurement and global Facing some of the biggest funding have an innovative public sector at its core. sales. This isn’t about “picking winners”. It’s reductions in the UK, West Midlands Police We don’t just need to support private- about picking the races on which to focus has consciously embraced innovation. In sector innovation – we need the public scarce resources, and the Government 2014 we established an Innovation and sector to be an active partner. If we do doing what only it can do, but doing it better. Integration Partnership with global both, we will be able to not only make Fundamentally, it is about encouraging consultants Accenture. The first of its kind Britain a testbed for technologies and a technology and innovation to help reform in UK policing, the partnership ensures magnet for attracting inward investment, the way government works to dramatically world-class innovation within public-sector but we can create a thriving market of improve public sector productivity. For margins. The five-year partnership builds innovative technologies we can export to example, in health, the challenge of capability in stages of increasing the world. Innovation post-Brexit can digitalising the NHS is also a massive (£4.2 sophistication; an ambitious operational reform our society, and in so doing, help billion) investment in a new sector of digital blueprint, next-generation enabling Britain go global. health – apps, tools, and technologies. services and increasingly agile ways of Public sector innovation is crucial to As we begin to chart a new era in our working, positioning us to achieve ground- tackling some of the biggest issues we face. national life outside the European Union, breaking capabilities by 2020. Take one of our biggest public sector we must never forget that UK plc has vast From the way in which the public challenges: health and care. How do we assets on its balance sheet. We have a contact the force, to how we respond, restructure the NHS into a patient-centred once-in-a-generation chance to restructure investigate and prevent re-offending, this healthcare system? How do we allow funding business to release the talents of our ambitious programme of work radically to follow the patient? 21st Century, digital people, draw in investment, embrace new overhauls all aspects of business with healthcare holds the answer – developed models, and become more entrepreneurial: people and technology at its heart. The here and then exported across the globe. making Britain a global crucible of blueprint is built upon extensive Brexit gives us a real opportunity to lay the innovation to export again to the world. consultation with the workforce, partners foundation for a new Victorian age, if you like, By becoming a testbed of the new and communities. It influences our culture, of applied science for global impact. One of technologies which are transforming the values, leadership, technology, services, the challenges we faced in recent years in the 21st century, and actively encouraging them systems and processes, building a European Union was lobbyists in Brussels to help reform our public services, we can cohesive model based upon four successfully imposing regulations which are accelerate public-sector efficiency, private- foundation principles: fundamentally anti-science and technology, sector growth, and exports to the fastest particularly in areas like Agri-Tech, where emerging economies, and unlock a whole Designed to Listen & Learn – adopting a Britain excels. Now we are leaving, we can new cycle of global growth and prosperity. new approach to working with the public, return to our pioneering roots. We need the next Richard Branson to be partners and each other. Coming to parliament after a 15-year as at home in the corridors of Whitehall as the Geared to Prevent Harm – preventing crime career in technology venture capital, and in conference rooms of Canary Wharf. That goal and offending before people can be harmed. my roles as the first Minister for Life must now be at the centre of the domestic Sciences and now as Chair of the Prime reforms required to underpin the Prime Prepared to Respond at Pace – adopting Minister’s Policy Board, I can see huge Minister’s inspiring vision of a ‘global’ Britain. a more agile, mobile and effective response opportunities to modernise and transform to problems in communities. our public sector through innovation to George Freeman MP Ready to Learn & Adapt – becoming a more deliver the vision above. It’s what modern Chair of the Prime Minister’s Policy Board active and innovative learning organisation. business expects of a modern government; @Freeman_George focusing on the technologies and sectors

5 All of the above principles are As we take stock and look to 2020, we system that also shows whether underpinned by putting our people at the are exploring the opportunities inherent in neighbouring surgeries have better heart of what we do. Each business case is national capabilities like the emergency availability. meticulously considered and benefits- services mobile communications Likewise, where for instance a birth is focused with Accenture contractually programme (ESMCP), the National Law registered locally, the software might want bound to deliver benefits, yet not Enforcement Data Programme (NDLEP), a council’s crest on every webpage, but guaranteed commissioning opportunities. and the Specialist Capabilities Programme underneath the skin the savings offered by Staff participate at every stage, from whilst also leading the way in a consortium not building a single thing multiple times is design to delivery, and at all levels from of forces developing a national big data an enormous prospect. executive sponsor to practitioner change analytics solution. Those basics, however, are not the end agent. Accenture’s contractual obligations of innovative public services: if every extend to business readiness, ensuring Louisa Rolfe council used compatible services for, say, support and preparedness throughout. Deputy Chief Constable, voter registration, many would question the The scale and pace of change is staggering West Midlands Police size of the building blocks of local with over 30 projects live at any time. @DCCLouisaRolfe government itself. Accenture’s global technology expertise Where, some ask, does this end? The has enabled rapid development. Cloud- Matt Warman MP answer might be with fewer councils, but it based systems underpin our enabling should be with each citizen being able to services, seamlessly connecting resource- see what data the state and third parties management with HR, Finance and holds about them, and able to choose to Technology Services. Apps are intuitive for share, say, a medical record with a benefits the most technology-shy and our Digital office to prove entitlement to an allowance. Experience for Citizens portal has been Facebook could plug in too. road-tested with real Midlanders aged 15 And it might also end with citizens able to 83! With a familiar look and feel it will to see or even to some extent control absorb volume demand and intuitively where their individual taxes can take them signpost services, yet quickly identify What does a modern, digital state look or our country. That innovation might not vulnerability and need. like? On the surface, pretty similar to the only revolutionise public services but it Stage one of the new operating model one we live in now. Underneath, the might do something impossible any other was achieved in November 2016: consequences are profound – the greatest way: restore a little faith in democracy itself. challenge is knowing where to start. >> Bringing Intelligence, 999 and 101 call A key principle – adopted already to Matt Warman MP functions together to enable some extent – must be to take the points of Member, Science and Technology intervention-focused call and incident greatest friction and address them as Committee management. quickly as possible. So, for instance, just @mattwarman >> Provision of body-worn video and after the birth of a new baby, few parents sophisticated mobile data to first are filled with joy at the necessity of a visit responders, reducing return-to-base to the Register Office. In New Zealand, this restrictions. can to some extent be done online. In the >> Introduction of modern, agile working UK, a baby might be assigned an NHS principles with estates refurbishment number not at the moment of birth but and state of the art custody facilities. while still in the womb; registering the birth >> Development of force-wide Response itself, and attaching a name to that record, and Support functions supporting might soon be simply a box ticked on a dedicated Neighbourhood Policing form, seamlessly. Yet what sounds so Units, enabling an Intervention and simple (and admittedly emotionless) Prevention focus. requires a revolution of IT both in the NHS >> 24/7 real time intelligence provision to and in local government. add real value to all calls for service and The staggering complexity of those two centralised Mission Support to ensure tasks is outweighed only by the huge value prioritisation of resources force wide. – financial and social – of getting it right. That one example, however, highlights Already the new model has improved call several points: computer systems in grading and threat assessment, reduced organisations such as the NHS are now response pressures and enabled a global infrastructure – they are national issues that approach to resource planning. Staff have should be managed from the centre. That grasped new technologies, making fabulous means national specifications for contracts use of apps to streamline the demands of or services, and competing products, with paperwork, addressing vulnerability through total interoperability mandated, that local intelligent referral and embracing better use services can use. The Government Digital of buildings to free up nearly 50 per cent of Service might, for instance, choose to expensive space. Dedicated neighbourhood blaze a trail by building best-in-class staff are released from resourcing prototypes, and maybe even spin them off operations to focus upon meaningful into companies that can compete in the intervention activity alongside successful open market. That way, every GP surgery offender management teams. could have the off-the-shelf appointments

6 Government at your service

Reform comment assessment tax returns in late-2015 is Designing services around people anathema to the 88 per cent of people who requires a shift in mentality from use the internet. Having to appear in court policymakers and front-line staff. This in person slows the criminal-justice system: requires people to see technology as an magistrates’ court cases take five months asset, not a risk. Better digital skills, a culture to complete. Better online information and where failure in the name of innovation is chat bots would make government more accepted and the piloting of new approaches accessible; video links to courts can speed will highlight the benefits of new service- up hearings and reduce the amount of time delivery models. Involving users in the design witnesses and police officers waste waiting of new technology (through ‘agile’ product Asking what your country can do for you for court appearances. design) will ensure that it meets their needs. would have John F. Kennedy turning in his Technology should not just accelerate Delivering outcomes for people in the grave. Times are changing, however, and traditional ways of working, however. It twenty-first century requires a government citizens expect much more from government should disrupt them. In healthcare, this that works for its citizens. Technology is the today than in decades past. If people can means creating a world in which your means to do this. Though Kennedy’s Golden order groceries from the sofa or bank in bed, doctor comes to you. Smartphone apps Age of capitalism has passed, the Golden it’s hardly surprising they expect the same can do this 24 hours a day by providing Age of public services may just be dawning. relationship with public services. information for the 60-plus million GP And government should respond. appointments consumed each year by Alexander Hitchcock Technology can improve access to core the ‘worried well’– or the 10 million A&E Senior Researcher, Reform public services. Waiting an average of 47 appointments which end with no more @AlexJHitchcock minutes to speak to HMRC about self- than advice being given.

Ultimately, technology-enabled policing promises to reduce crime, support wellbeing and cut costs. For reform to deliver lasting change, however, it must be business, rather than technology, led. The future of public services: digital policing

The future of public The future of services: digital patients public services: digital justice

William Mosseri-Marlio William Mosseri-Marlio Charlotte Pickles

May 2016 #digitalpatients February 2016

The future of public services: digital policing

Smart campuses: The future of public how big data will services: digital William Mosseri-Marlio Charlotte Pickles transform higher jobcentres education

Emilie Sundorph William Mosseri-Marlio William Mosseri-Marlio

April 2016 #digitalpolicing September 2016 #reformHE July 2016 #digitaljobcentres

7 Jonathan Slater enable easier movement of data within and essential step to enabling government between schools and the department. organisations to start to use the data held There are many opportunities in this area for in and generated by their online services the Department and the sector to take to better focus them on the needs of advantage of technology and digitalisation, individual citizens and drive the next and I look forward to seeing the results. generation of efficiencies from digital. Departments and their technology Jonathan Slater suppliers must make further efforts to Permanent Secretary, Department for adopt agile development and the “DevOps” Education support model so that they can continue At the Department for Education we serve a @PermSecDfE to evolve online services and properly range of stakeholders – employers, parents, integrate these with existing investments schools, teachers, to name a few. Daniel Searle in technology. Government digital teams, Digitalisation is vital in helping us serve them whether in-house or involving suppliers, better, which is why our department’s digital must build upon the step-change in the strategy is so important. We want to be able quality of government web services that to produce digital services so easy to use we have seen over the last few years and that our customers prefer to use them. embrace the full suite of today’s digital Our online school and college technologies, including mobility, big data performance tables have been in public use analytics, automation, robotics, and the for nearly a year. They are easy to find and Internet of Things. And we must ensure understand, meaning everyone who uses that all of these systems are properly the tables is able to make an informed The last few years have seen a huge secured against the ever-increasing threats choice. Parents are given the chance to transformation in how government of cyber-attack, so citizens can have full effectively compare schools and colleges to departments procure, develop and confidence that their sensitive data is being find the one that’s right for their family. manage the digital and information managed appropriately. Publishing the data also helps schools and technologies upon which they rely to Finally, the governance and colleges do their own analysis – improving deliver services to the public. But if there procurement models used to support the accountability and transparency. is one lesson to be learned from these Government’s end-to-end requirements for Our Digital Apprenticeship Service is also changes, it is that the job is never done. technology must also evolve, informed by due to go live in April 2017, alongside the Successful digital transformation relies lessons from the last few years, so civil start of the apprenticeship levy. Employers as much on continuous iteration of the servants and supplier staff can work can create an account through which they processes and structures by which together more effectively to meet citizens’ can access funding for apprenticeships, find services are delivered as it does on ever-heightened expectations for digital the right training provider and recruit an continuous iteration and improvement of government services that mirror the best apprentice – all through the same portal. We the services themselves. It is now nearly that they experience from the commercial are delivering the Digital Apprenticeship seven years since the election of the organisations with which they interact. Service in partnership with a number of Coalition Government under which these Hewlett Packard Enterprise is one of the other government departments, creating a reforms were first introduced and the pace world’s leading technology companies, culture of open collaboration and flexibility. at which the art of the possible has and a longstanding supplier of digital and For example, the system needed to advanced since then has only increased. IT services to the UK public sector. We exchange information with HMRC’s Digital Whilst digital government services have constantly seek to apply the lessons from Tax Platform about the Apprenticeship Levy advanced from the status of exemplars into our experience with some leading – so rather than build a gateway between the mainstream, there is more that can and businesses and governments around the the two platforms, we set up a cross- should be done. Recent changes in the world into the work we do for out public departmental team within HMRC that used leadership and direction of both the sector clients, so that we can help them agile working to build a secure integration Cabinet Office’s Government Digital scale their digital transformation efforts in between the two systems. Service and individual departments order to deliver long-lasting and significant Most critically though, we wanted the suggests that we are on the cusp of the benefits for service users and the taxpayer. service to meet the needs of the employers next-generation of digital policy. Moving who will be using it. Our mind-set is that the the work of the Department for Work and Daniel Searle more we involve users, the more we learn, Pensions’ Digital Academy into the centre Chief Digital & Information Officer, Public so the go-live date of our Digital so that all departments can benefit from Sector, Hewlett Packard Enterprise Apprenticeship Service will be the start of this approach will ensure that an @DanielSearle3 delivery, not the end. The Department’s understanding of digital is no longer a digital strategy has users at its core, as we specialist skill, and digital will increasingly continue to strive for better ways to deliver become an essential part of every civil practical and effective digital solutions servant’s capability. wherever we can. Notwithstanding the many successes of I recently attended the British the past few years, there are a number of Educational Training and Technology show challenges which departments and the (BETT), which demonstrated a number of centre must now tackle if they are to drive new and innovative ideas in educational digital to the next level. Digital technology from around the world. At last transformation must become end-to-end year’s BETT, the Secretary of State and address the legacy systems upon announced a Data Exchange project to which existing services rely. This is an

8 Whitehall’s stories of success

Reform comment sector firm. Most impressive is the speed at For other departments, the savings that which these tools can be designed. GDS workforce reform can bring was the principal built the world-class GOV.UK website with driver of reform. The Department for just 16 people in 12 weeks. Education’s staffing review found that only 3 Digital has also modernised Whitehall’s per cent of employees were formally assigned back-office functions. Since 2012, to flexible teams with clearly defined projects; departments have had access to the G-Cloud a target to cut staff by 30 per cent was set in – a streamlined digital marketplace for buying April 2013. The Levene Review – arguably a cloud-based products. The major success of more radical example of transformation – saw G-Cloud has been to boost the number of the Ministry of Defence become a leaner and The Yes Minister stereotype portrays SMEs bidding for – and winning – central higher-skilled organisation. Whitehall as inherently resistant to change. government contracts. Late in 2015, the In his speech to Reform last year, the But over the last few years, some Government announced its intention to extend Cabinet Office Minister Ben Gummer MP branches of government have undergone the online marketplace to other goods and argued that “too often the public is made to a quiet revolution. services that government purchases. feel as though they are the servants of the One catalyst has been digitisation. The emergence of digital government government.” Reformers all over Whitehall are The customer service of public institutions has had repercussions for the workforce. reversing that relationship – long may they has been transformed by the Government Through online services and rolling out continue. Digital Service. Applying for a driving real-time information, HMRC reduced its licence, for example, now resembles the headcount by more than a third – William Mosseri-Marlio type of experience you would expect to contributing to efficiency savings worth Research Manager, Reform receive from a high-performing private- £210 million. @wmosserimarlio

In Whitehall, pioneering departments have made efforts to reduce the number of roles. HMRC has reduced the workforce from 96,000 in 2005 to 60,000 a decade later through

Faulty by design. expanding online services and rolling The state of public-service commissioning. out real-time information, enabling

Eleonora Harwich fewer contacts between tax advisers Alexander Hitchcock Elaine Fischer Cloud 9: the future of and users. public procurement January 2017 #reformcommissioning Faulty by design: The state of public- service commissioning

Alexander Hitchcock William Mosseri-Marlio

March 2016 #reformprocurement A single portal for government buyers and suppliers – where commoditised products can be purchased at Work in progress. Towards a leaner, smarter speed and bespoke goods shaped public-sector workforce. through online engagement – offers Alexander Hitchcock Kate Laycock Emilie Sundorph a bright new future for public-sector

February 2017 #reformworkforce procurement. Cloud 9: The future of public procurement

9 Bernard Jenkin MP This points to a more fundamental flexible public services over the longer challenge for today’s civil service. How term, and supporting government to can the civil service underpin its own identify the £3.5 billion of cashable savings sustainability as an organisation, when it is needed in 2019-20. Ongoing research and ministers, rather than civil servants, who support from Reform will be key to helping are accountable for its organisation and the Government consider the options future? Both Lord Kerslake and Lord Butler available to deliver these objectives. agreed that government must recognise The Chief Secretary believes that the that long-term stewardship of the civil centre of government can act as a hub for service is “an activity that will go beyond ideas, promoting and sharing the Reform of the civil service always seems to their particular administration” and ministers successes of one department with others. fall short of expectations. The Institute for must be willing to subscribe to that. This could include improving government Government noted in a 2014 report that The key to successful reform is therefore procurement, increasing sharing of each of their case studies of successful to recognise that reform is not something resources across government departments, reform “end in failure of one sort or another. that ministers do to the civil service, but it is and considering alternative models to Most reform interventions have a shelf life a cooperative effort. That is only possible if deliver public services more efficiently. I and need to be reinvented - something that ministers and officials understand their believe working together across is rarely done well.” As a consequence, the respective roles, and trust each other, or government and the wider public sector will civil service finds itself returning to the there will be no open discussion, no be essential in delivering the Review and same issues time and again, but failing to open-minded exploration of concerns and identifying new ways of working that allow bring lasting solutions to some of its most options, and no genuine joint understanding us to deliver more, and better, for less. persistent challenges. of what needs to be reformed. Ministers We have many good examples where Why is this and what are the behaviours are somewhat removed from GCHQ. the Government has successfully that can sustain meaningful learning and Nevertheless, they feel able to rely on its delivered efficiencies. For example, the change in the civil service? This is the performance and trust its leadership. What introduction of GOV.UK helped to question the Public Administration and lessons from this would benefit the rest of consolidate over 685 websites from over Constitutional Affairs Select Committee Whitehall? I hope that the report on our 300 agencies and government (PACAC) sought to answer in our 2013 present civil service inquiry will shed light organisations onto a single platform, Report, Truth to Power: How Civil Service on this question. improving functionality and resulting in Reform Can Succeed, and it is the savings of £61.5 million in 2014-15. question that this select committee is Bernard Jenkin MP We have also exited 2.4 million square again exploring as part of our latest civil Chair, Public Administration and metres of surplus property since May 2010, service Inquiry. Constitutional Affairs Select Committee an area bigger than the entire state of There are, of course, many cases of @bernardjenkin Monaco, generating nearly £1.8 billion in successful reform across Whitehall, and capital receipts and saving over £750 important lessons can be drawn from Jane Cunliffe million in running costs. identifying and examining these examples. Alongside the Efficiency Review, the One possible area for investigation was Cabinet Office, through their functional presented to me last November when I was agenda, have continued to develop a number speaking at the Institute for Government on of cross-cutting programmes that can help PACAC’s civil service inquiry. Sir David departments make efficiency savings. Omand, former Permanent Secretary at The functional agenda is key to the Government Communications strengthening government’s capability in Headquarters (GCHQ) pointed to the areas such as digital, commercial and success of GCHQ in adapting to and finance, and supporting cross-government harnessing the advantages of rapid “Putting the public finances on a sustainable transformation and efficiency. The technological development. Why, he path is vital to securing a strong and stable functions help departments deliver asked, had GCHQ managed this so economy. The Government remains government policy and objectives, by successfully, where others had failed? committed to returning the public finances bringing specialist delivery skills and a One explanation, as Sir David to balance, ensuring that the UK lives within cross-cutting perspective. suggested, is that GCHQ managed their its means.” (Autumn Statement, 2016) That’s not to say it will be easy. And digital transformation without the use of The Government announced in Budget implementing the agenda will require external consultants. This creates a key 2016 that it would be taking forward an Whitehall to collaborate and work across demand and expectation that staff will efficiency drive across government. traditional boundaries to identify further themselves find solutions to the problems I know that this Review is right at the top efficiency opportunities. and challenges they face. When there is of the Chief Secretary to the Treasury’s But as the Chief Secretary said when he bias towards relying on consultants, rather priorities, and in his first week in the job he spoke at Reform, good governments are than tackling issues in house, this tends to delivered a speech to Reform on improving always looking to improve, so I am looking result in a disengagement from those who government efficiency and encouraging forward to participating in this conference and should be most engaged. Appearing innovation. The Chief Secretary is working hearing further ideas for driving efficiency. before the Public Administration and alongside the Minister for the Cabinet Constitutional Affairs Select Committee in Office, the keynote speaker for this Jane Cunliffe November, Lord Kerslake, former Head of conference, to deliver the Efficiency Review. Director of Public Spending, HM Treasury the civil service, identified the need to The Efficiency Review has a broad @hmtreasury improve engagement as a key factor in focus, looking at how government can determining successful reform. embed efficiency to help to deliver modern,

10 How will we pay for the welfare state?

Reform comment working-age people and children is forecast together account for almost two thirds to be £94.4 billion this year, £2.6 billion lower of working-age expenditure. As than in 2009-10. During the same period, (predominantly) income-related benefits, pensioner expenditure increased by £13.5 they support people struggling to make billion, to £117.4 billion in total. This reflects ends meet, the “just managing” identified not only the protected status of pensioners, by the Prime Minister. but also the difference in approach to In each of these areas, benefit payments uprating their benefits. Whilst pensions are are picking up the pieces of failed policy enjoying a generous triple lock (the elsewhere. Reducing Tax Credit spend cumulative cost of which will pass £20 means supporting people to earn more. More than £1 in every £4 that government billion by 2017-18), working-age people are Reducing the cost of Housing Benefit spends goes on social security benefits. In getting progressively poorer each year due means addressing the shortage of 2016-17 this equated to almost £212 billion, to a benefits freeze. affordable, social and low-rent homes. or around 11 per cent of Gross Domestic The intergenerational unfairness of this Spending less on ESA means helping more Product. By comparison, the other key approach is starker still when considering disabled people move into work – though planks of the welfare state combined, the that pensioners are now least likely to be in as Reform has highlighted, it also means NHS and education system, will spend just income poverty. Increasing the state reforming the benefits system. 85 per cent of that. With an ageing pension age is key to ensuring a It is in delivering these reforms that the population, increasing disability sustainable pension system, but so too is Government’s domestic legacy should lie. prevalence, persistent low pay and an scrapping the unaffordable and uncertain fiscal outlook, pressures on unnecessary triple lock. Encouragingly, the Charlotte Pickles social security are high. new Chancellor has indicated he may be Deputy Director and Head of Research, The 2010 Parliament saw an endless open to this. Reform stream of demands for cuts to working-age Tax Credits, Housing Benefit, and @ce_pickles expenditure. As a result, the benefit bill for Employment and Support Allowance (ESA)

The best way of reducing working age welfare expenditure is by reducing the demand for it. This requires a system that helps people stay in, move into and progress in work. How to run a country: working age welfare

The triple lock is the primary driver of long-term spending Updating uprating: How to run a country: towards a fairer system Working age welfare growth on the State Pension, accounting for more than

Alexander Hitchcock Charlotte Pickles 70 per cent of... increased William Mosseri-Marlio Hannah Titley Charlotte Pickles expenditure over the next 50 James Zuccollo years. October 2015 #reformuprating June 2015 Updating uprating: towards a fairer system

11 Rt Hon Steve Webb principle. If we are going to have an associated risks of out-of-control public affordable welfare state, we need to look at expenditure and the increased impact it prevention and not cure. Much welfare has on services like health, education and spending is about picking up the pieces social welfare. after things have gone wrong. By far the With debt at such high levels, it is most humane approach to managing imperative that the Government has an welfare bills is to tackle the root causes of effective strategy to manage its exposure to high spending. Whether this is policies the associated risks. For example, it could such as supporting frail elderly people to consider increasing clinical staff levels in live safely in their own homes rather than high-risk areas, to increase quality of care Along with many other developed needing expensive institutional care or which would in turn reduce the overall bill economies, the UK faces a public- making sure workers with low-level health for clinical negligence (currently set at £29 spending crunch over the coming problems get support to ensure that they billion for clinical negligence claims). decades. An ageing population brings with do not turn into long-term sickness Similarly, the majority of businesses it rapidly growing unfunded bills for state absence, we can reduce the pressure on have moved employees to defined pensions, public service pensions, public spending and produce better contribution pension schemes, yet healthcare and social care. At the same outcomes for individuals. This is where the government staff are still on defined benefit time, the relative size of the working-age creative thinking needs to happen. schemes. This is expensive and risky and population is set to shrink. If future the cost falls to the public purse with generations of workers and their employers Steve Webb estimated future costs calculated at are not to face sky-high rates of taxation, Director of Policy, Royal London approximately £1.5 trillion (similar to the something has to give. @stevewebb1 national debt figures). Using public money One of the biggest things which will to fund runaway growth in civil service have to change is our attitude to ageing Sumita Shah pensions means less money for other and to older workers in particular. It is much-needed services. normal in discussions of this sort to quote The national debt is higher than at any statistics based on the ‘dependent’ elderly time, other than the aftermath of a major population which has to be ‘supported’ by war – the UK Government last published a the working-age population, and the debt management strategy in 1995. A lot dividing line between the two groups is has happened since then, so a refreshed almost invariably set at 65. But these crude strategy is long-overdue. The Government statistics tell us very little about the ability has always taken an economist’s view of of the working-age population to pay for public finances, but we believe that it’s now public services for the dependent elderly. All decisions have consequences and the time for it to take an accountant’s view and First, in many respects, 65 is no longer financial consequences of public policy bring a more business-like approach to ‘old’. After October 2018 neither men nor decisions become apparent when we start to managing public finances. women will be able to draw a state pension crunch the public-sector finance numbers. on their 65th birthday, and pension ages The national debt is now over £1.5 trillion Sumita Shah are set to rise to the late 60s and potentially or 83 per cent of GDP and expected to grow Public Policy Manager, beyond for today’s new workers. Our ability to under £2 trillion in the next five years, the The Institute for Chartered to fund pressures on public spending in highest level of public indebtedness ever Accountants in England and Wales future will depend crucially on how far we seen. And the consequences of policy @SumitaShah can retain, retrain and recruit older workers decisions on areas such as pensions so that they remain on the taxpaying side provision for public sector employees, how of the balance sheet. to manage clinical negligence in the NHS, Second, whilst many people can and do and the cost of cleaning up the nuclear work past pension age, many stop short, industry only serve to increase these whether due to ill health, caring numbers. When these items are included, responsibilities or unemployment. This is a total current liabilities, today, already exceed waste of people’s potential at the best of £3.5 trillion, or in simple terms, they are at times and in an era where there are huge 191 per cent of GDP. This is a staggering calls on spending from an ageing population £130,000 per household. we simply cannot go on like this. Much more So, how does this impact on future therefore needs to be done to prevent generations and on services that we avoidable early exit from the labour market. receive? If government continues to A range of policies are needed, including manage in the way it currently does, then things like: improved occupational health in the future doesn’t look good. The current the workplace; more support for career policies of only managing current spend moves to less physically demanding jobs in are not working. They are increasing our later life with associated retraining; more debt and the amount of interest that we help to enable carers to remain in the paid pay on a day-to-day basis, and this is labour market; and action to ensure effecting our economic growth and welfare. employers do not discriminate against older We believe that the government needs to workers and older job applicants. take a more business-like approach to Supporting older workers is a specific dealing with liabilities. It needs to think example of a much more fundamental more about future spend and the

12 Join us in 2017

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