MEET THE NEW CABINET SECRETARY, MARK SEDWILL: “SOMETIMES YOU HAVE TO BE WILLING TO TAKE ON THE ARGUMENT”

AN INTERVIEW WITH MARK CARNEY THE GOVERNOR OF THE BANK OF ENGLAND ON BREXIT

FROM QUACKS TO TAX RETHINKING TAX COLLECTION TO SAVE BILLIONS

SCIENCE IN POLICY 10,000 PROBLEM SOLVERS AT YOUR DISPOSAL

Issue 19 February 2019 Subscribe for free here: quarterly.blog.gov.uk #CSQuarterly CONTENTS

AN INTERVIEW WITH SIR MARK SEDWILL Sir Mark Sedwill, National Security Adviser, Cabinet Secretary and 4 Head of the Civil Service

GETTING TAX RIGHT, FOR EVERYONE Poli Stuart-Lacey, Director of Communications, HMRC 10

TRANSFORMING FRONTLINE SERVICES Lee Pope and Paul Blake, Data Policy and Governance Team, 14 THROUGH BETTER DATA SHARING Department for Digital, Culture, Media & Sport

GETTING FULL VALUE FROM GOVERNMENT Sir Michael Barber 18 SPENDING

LEADING THE WAY - TAKING THE CIVIL Amrita Devaiah, Head of Civil Service Live, Cabinet Office 24 SERVICE’S BIGGEST LEARNING AND DEVELOPMENT EVENT TO THE NEXT LEVEL

OVER 10,000 PROBLEM SOLVERS AT YOUR Dr Patrick Vallance, Government Chief Scientific Adviser 26 DISPOSAL

100 YEARS OF INDEPENDENCE Baiba Braže, Latvian Ambassador to the UK 30

SPOTLIGHT Civil Service Award winners 2018 36

IN CONVERSATION WITH… MARK CARNEY Mark Carney, Governor of the Bank of England 40

Civil Service Quarterly opens CONTACT US EDITORIAL BOARD up the Civil Service to greater [email protected] Sir Chris Wormald, Permanent Secretary, collaboration and challenge, Room 317, 70 Whitehall, Department of Health (chair) showcases excellence and invites London, SW1A 2AS discussion. If the Civil Service is to Alex Aiken, Executive Director, Government Communications be truly world-leading, it needs to Read the magazine online collaborate more, learn from experts and subscribe for free – David Halpern, Chief Executive, outside the Civil Service, listen more quarterly.blog.gov.uk Behavioural Insights Team to the public and front-line staff EDITORIAL TEAM Clare Moriarty, Permanent Secretary, and respond to new challenges with Department for Environment, Food and innovation and boldness. Adam Thorndike, Cabinet Office Rural Affairs [email protected] Any civil servant can write for Sir Richard Lambert, Chairman, Civil Service Quarterly – contact Simon Holder, Cabinet Office Board of Trustees, British Museum [email protected] [email protected] John Pullinger, National Statistician Helen Shephard, Cabinet Office and Chief Executive of the UK Statistics Cover photo: ©Crown copyright [email protected] Authority Thanks to Shannen Catalan, Sam Beckett, Joint Head, Government Department of Health Economic Service Charles Roxburgh, Director General, MEDIA CONTACT Financial Services, HM Treasury Suzannah Brookner, Cabinet Office Jill Rutter, Programme Director, suzannah.brookner@cabinetoffice. Institute for Government gov.uk Philip Rycroft, Permanent Secretary, Contact us at: DESIGN BY DESIGN102 Department for Exiting the European [email protected] Union, and Head of UK Governance Group, www.design102.co.uk Cabinet Office EDITORIAL

With preparations for the 2019 Jeremy wrote in his joint editorial Spending Review under way, with the then Minister for the Sir Michael Barber fills in the Cabinet Office, Francis Maude, background to his independent for the first CSQ in July 2013: report on the government’s “At its best, the UK Civil Service management of public money. is world class: intellectually He looks at the report’s central rigorous, creative and fair; and proposals, in particular the dedicated to serving the public. creation of a framework against But if we are to be truly world- which to assess the effectiveness leading we need to collaborate of spending in delivering more, learn more from experts outcomes. Following on from this, outside the Civil Service, listen ivil Service Quarterly (CSQ) providing value for money is the more to the public and front- Cwas the late Lord (Jeremy) subject of one of the questions line staff, and respond to new Heywood’s idea, and he chaired we put to the Governor of the challenges with innovation and the editorial board for its first Bank of England, Mark Carney, in boldness.” five issues. His argument for a a featured interview. publication to showcase the All that remains true today. It is best of Civil Service analysis Crafting a trusted legislative our intention that this and future and policy-making was simple: and regulatory framework for editions of CSQ will continue to the Civil Service had much to processing and sharing personal help the Civil Service strive to be be proud of and should not be data, to unlock its full potential world-leading in everything it does. reluctant to shout about it – but and improve frontline services, is to be even better it needed to the focus of an article from two be open to new ideas, better at DCMS data policy specialists. sharing innovations and open to The power of digital to make challenge. services more efficient and user-friendly lies behind HMRC’s CSQ was one way of achieving innovative marketing campaign these objectives, and the to encourage taxpayers to first edition exemplified the beat the deadline for online developments that Jeremy Self Assessment. Director of championed. There were articles Communications Poli Stuart- about the potential of digital to Lacey charts how the move “from transform public services; data Jeremy believed passionately tax man to tax duck” increased sharing to improve delivery; and that only a public service that compliance rates. using behavioural insights to could tap into the innovative crack problems where traditional As Dr Patrick Vallance, the talents of a truly representative policy-making had reached its government’s Chief Scientific and inclusive workforce would limit. That edition also illustrated Adviser, reminds us, science and be capable of meeting the the extraordinary range of Civil technology never stand still, and needs and aspirations of the Service work, from operational can play a vital role in effective whole nation. His commitment issues in HMRC, to the FCO’s decision-making. He challenges to realising that vision will role in the UN Arms Trade Treaty, policy-makers not to forget find lasting expression in the and the Government Office for the difference that scientists – foundation created in his name. Science’s International Disaster there are 10,000 of them across The Heywood Foundation is a Risk Reduction work. government – and scientific registered charity dedicated evidence can make in solving to supporting the causes that While CSQ’s focus was on policy policy problems of all kinds. Jeremy believed in, particularly and analysis, for Jeremy that did innovation in policy thinking and not mean concentrating only on In other articles, Latvia’s equality of opportunity for all. It Whitehall and policy-makers. The Ambassador to the UK assesses has the full support of the Civil idea was to celebrate the work the practical and symbolic Service, which he led with such of all 400,000 civil servants, importance of free and open distinction and humanity. across all professions and public institutions to her country, in all their diversity, at home fresh from celebrating the and abroad. centenary of its independence. Now in its 19th edition, CSQ Finally, and fittingly, we have an continues to reflect Jeremy’s interview with Jeremy’s successor priorities for the development of as Cabinet Secretary and Head of a technologically and culturally the Civil Service, Sir Mark Sedwill, progressive Civil Service focused whose commitment to open, on the best outcomes for citizens. brave and rigorous policy-making Sir Chris Wormald, Permanent and analysis is just as great. As Secretary, Department of Health 4 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

AN INTERVIEW WITH SIR MARK SEDWILL, NATIONAL SECURITY ADVISER, CABINET SECRETARY AND HEAD OF THE CIVIL SERVICE Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 5

YOU HAVE RETAINED WHAT ARE YOUR IMMEDIATE THE NATIONAL SECURITY AND LONGER-TERM ADVISER ROLE, WHILE PRIORITIES FOR THE TAKING ON THE ROLES CIVIL SERVICE? OF CABINET SECRETARY AND HEAD OF THE CIVIL First, building on ‘A Brilliant Civil WHAT EXPERIENCE AND SERVICE, AND RAISED Service’, both as a programme INSIGHT FROM YOUR SOME EYEBROWS BY and a brand. It gives us an PREVIOUS ROLES IN THE DOING SO. HOW WOULD important sense of direction. DIPLOMATIC SERVICE YOU EXPLAIN YOUR ROLE We need brilliant people, AND AS HOME OFFICE AND RESPONSIBILITIES TO brilliant technology, brilliant PERMANENT SECRETARY A CIVIL SERVANT ON THE systems. It’s a constant effort DO YOU FIND YOURSELF FRONT LINE? to upgrade those, and ensure USING NOW AS CABINET people can fulfil their potential SECRETARY? I describe myself as the Cabinet and have the tools they need. Secretary, and then set out the Two things. First, a sense shape of the job as I’m doing Second, in my first message of perspective. it. That shape has varied over to civil servants I spoke about time. I also have the roles of impact and teamwork. We must Mine is an unusual background Head of the Civil Service and stay focused on our impact on for Cabinet Secretary, having National Security Adviser. Some the lives of individual citizens spent much of my career of my predecessors, like Gus and the prosperity and security overseas in security and O’Donnell, for example, were of the country. international roles outside the Cabinet Office Permanent Westminster and Whitehall Secretary as well as Cabinet And by teamwork I don’t just world. That helps me retain Secretary and Head of the mean people working in teams a sense of balance and Service. within the Civil Service, but perspective on the really big across the whole public service issues, like the new global Most were responsible for and beyond, building effective order, technological change, national security. The formal role partnerships with the private population and climate of National Security Adviser is a and third sectors – and, of movements, as well as the relatively recent innovation. The course, with the citizen. It’s inevitable preoccupations job developed during my time this systems modernisation of Brexit and the in it, balancing the traditional that I want to bring to this domestic economy. foreign policy and international role, building on the effective affairs concerns with the modernisation and capability Second is shouldering defence and homeland security upgrading we saw under my responsibility. I hadn’t worked issues, operating alongside the predecessors, from commercial, in big hierarchies until quite Cabinet Secretary. digital and data capability, late in my career. Operating to the diversity and inclusion overseas in quite small teams The reason I’m doing it this agenda, which we absolutely means that I’m used to taking way is to make a success of must see through. My task is decisions and shouldering Brexit. It’s critically important to add that systems capability, responsibility, with more of a that we bring together – fusion, that teamwork, across the whole sense of personal impact. So I as we call it in the national public service and beyond. And learnt some of those personal security community – all our that’s to help the government leadership qualities quite early national capabilities, including navigate the country through on. I also bring the experience economic, security, social and Brexit and, more importantly, in of running the Home Office. I’m the rest, with a genuine sense a way, to make a success of it. not alone in this, of course. The of teamwork across and beyond Dean of Cabinet Secretaries, government. Robert Armstrong, came to the job having been Home While leadership is about Office Permanent Secretary, as identifying the big ideas, it’s did Richard Wilson. And that also about building a great department is a microcosm of team. I am strengthening the some of the challenges of this team around me in the Cabinet job, facing some of the most secretariats, ensuring that they pressing policy issues and operate as a real team, rather reacting to events. than in specialist silos. 6 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

HOW DO WE REMAIN and their confidence in us, in the working outside public service UNIFIED AS ONE CIVIL period after the financial crash, but alongside it, such as large SERVICE WHEN THERE IS when many citizens felt that parts of the third sector. SO MUCH UNCERTAINTY the economic model pursued It was important not just to SURROUNDING BREXIT? by successive governments focus on the roughly 30,000 wasn’t working for them. If people working directly in the Brexit is a massive national people feel that the system Home Office, but to recognise endeavour. It’s important that isn’t working for them, then that they were part of a we see it as such. There will be their confidence in the people wider community of people civil servants who voted on both who make that system run is with the same mission, to sides of the argument. But the inevitably challenged. It’s a keep the citizen safe and the Civil Service exists to serve this great achievement that, despite country secure. government – and future ones, all this, trust in the Civil Service because it will be an endeavour has risen. Where I sit now, of course, for many years to come – and it’s a broader mission, about make a success of it. It might My job is to make sure that prosperity, security, social be on a different scale from we continue to connect with cohesion, and so on. There’s other issues, but we’ve done the public’s expectations and a practical importance in civil these big national projects show them that we’re dealing servants seeing themselves as before. Our predecessors, for with the issues that preoccupy part of that wider community. example, supporting the Attlee them. And let’s not forget the For example, in France, teachers government in 1945 in a huge majority of the 400,000 civil are civil servants, here they’re national project of post-war servants – and several million not. In this country, Border reconstruction, and the creation public servants – who are not Force officers are civil servants, of the National Health Service dealing with the immediate in France they’re police officers. and the welfare state. Then, consequences of Brexit but There’s no particular reason why those working for the Thatcher providing public services. It’s it has to be one or the other. But government, re-orientating the important that the individual they are all public servants. economy and country for the citizen recognises we’re working And if we want to achieve the modern era. We have to draw on their behalf. results, we have to work in on our history and our timeless teams that include that whole values, as well as applying YOU’VE REFERRED IN THIS public service. ourselves to the needs of today. INTERVIEW AND ELSEWHERE TO THE FUNCTION OF THE We also need to take advantage THE MOST RECENT IPSOS WIDER PUBLIC SECTOR of the opportunities for MORI POLL SHOWS PUBLIC AND NOT JUST THE CIVIL collaboration we can actively TRUST IN CIVIL SERVANTS SERVICE. COULD YOU create for the benefit of citizen INCREASING, AS IT HAS EXPAND ON THE REASONING and country. It’s a complex OVER THE LAST 30 YEARS. BEHIND THAT? world now. We need to bring DO YOU THINK THAT BREXIT people together from different IS A THREAT TO THIS TRUST? It’s really because of my backgrounds and disciplines. emphasis on teamwork that we As National Security Adviser, It’s very important that it isn’t, have to understand that civil I brought the economic and that the public sees that servants are part of a wider departments into the national the Civil Service is doing the job community of public servants. security community, and that they expect, supporting the tried to ensure that both not government, and delivering When I was at the Home Office, only understood each other’s their needs. I was conscious of the 300,000 priorities but could benefit from public servants within what their expertise. The same has I actually believe the bigger you might call the Home Office got to be true across the challenge for the whole of community: police officers, fire public service. the public service was in and rescue officers, Border maintaining that sense of Force personnel, immigration YOU HAVE ALREADY SHOWN, connection with the public, caseworkers, plus the people WHEN PUBLICLY DEFENDING Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 7

My job is to make sure that we continue to connect with the public’s expectations

efficiency. It’s taxpayers’ money. They have an absolute right to expect that we use it well.

The way I want to approach this YOU HAVE SHOWN, WHEN Even where issues of political – and this is part of the theme PUBLICLY DEFENDING THE controversy are concerned, as I’ve been talking about – is PM’S EUROPE ADVISER OLLY they were here, I believe it was by looking at some of the big ROBBINS, THAT YOU’RE the right thing to do. I may say cross-cutting issues. WILLING TO ENTER THE that I had the strong support of FRAY ON BEHALF OF THE the PM and Cabinet for what One question is, how do CIVIL SERVICE WHEN IT I said. we prioritise investing the COMES UNDER ATTACK. DO preventative pound versus YOU SEE THAT AS PART OF HOW ARE YOU PLANNING the responsive £10 or YOUR ROLE? FOR THE UPCOMING £100, particularly when the SPENDING REVIEW, AND preventative pound tends to Sometimes you have to be WHAT ADVICE WOULD YOU solve the problem tomorrow, willing to take on the argument, GIVE TO THOSE IN THE CIVIL not today? and I think it was appropriate on SERVICE RESPONSIBLE FOR that occasion. MANAGING BUDGETS? We need a balanced approach, presenting choices to ministers. I calibrated that intervention The Treasury are responsible for So, rather than the usual options quite carefully. I wanted to send running the Spending Review. I of up-and-down spending in a clear signal to those who were see my role as identifying half a different places, we should sniping away anonymously that dozen or so big themes where I say: “If you’re willing to invest this was not on, that there is think I can add some value. more we can deliver more. If a contract here: that we serve less we’ll deliver less. But our our fellow citizens, that they The key point is that a recommendation to you is to must be confident that we do so spending review is both an achieve balance across the according to the values I spoke opportunity and a moment system.” of earlier, and that we remain of accountability. Colleagues absolutely committed to those have to be absolutely clear that values. Getting recognition they can show they are using of the fact that we continue public money to the maximum to prize a professional and effectiveness and with maximum impartial Civil Service that people can trust was – and is – essential. 8 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

To use a criminal justice WHAT POLICY HAS INSPIRED access to the individual’s example, there’s not much point YOU MOST DURING YOUR records or might even know investing hugely in policing to TIME IN THE CIVIL SERVICE them? I’ve seen examples of reduce crime if the prosecutorial AND WHY? this with street triage, where system, the courts, the prison mental health professionals and rehabilitation systems don’t Mental health is a great example. work alongside the police, and have the capacity to absorb they’ve said, it’s OK, take them that and take people out of Let’s say someone is exhibiting home, they’ll settle down, they reoffending. You’ve got to have a serious mental health crisis aren’t going to self-harm. That’s a balance. That’s what I’m trying at the weekend on the streets. better for the individual and less to bring to the Spending Review. The primary duty of police burden on the police. officers, who are likely to be first So I will look to ensure we responders, is to ask: “Is that The question is, how do you have that balance across person a danger to themselves take that model and bring it to departments, in instances where or their fellow citizens?” They an industrial scale, structuring opportunities or problems might feel they have no choice and incentivising the police, aren’t really owned by a single but to detain that person. A social services, adult social care, department but spread across police cell is probably not the health service and so on, to several. the best environment for that make that the default way individual, but it may be the they operate. only place of safety they can use. They can’t be expected There is a great example in the to judge whether it’s safe, for Troubled Families programme example, to take the person that Dame Louise Casey back home, because they might advanced. Some places around self-harm or worse. the country have really nailed that, with impressive results. But what if you can bring to Those are the kind of things bear the expertise of a mental where we can have a really health professional who has powerful effect – and again it’s about multidisciplinary teamwork, where you wrap a set of interventions around the citizen, rather than asking the citizen to navigate through the complexity of government. Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 9

HOW CAN WE ENSURE IF YOU COULD GO BACK TO THAT THE CIVIL SERVICE WHEN YOU ENTERED THE MEETS THE TARGET IN THE CIVIL SERVICE AND GIVE DIVERSITY AND INCLUSION YOURSELF ONE PIECE OF STRATEGY OF BECOMING ADVICE – OR IF YOU COULD THE UK’S MOST INCLUSIVE GIVE ONE PIECE OF ADVICE EMPLOYER BY 2020? TO SOMEONE JUST STARTING THEIR CIVIL SERVICE This is an area where we CAREER – WHAT WOULD need a sense of both urgency IT BE? and patience. I’ve genuinely never planned It’s not something where you my career. My ambition wasn’t can say, with edicts from me, if for particular positions, it was we do the following three things to be the person who set the everything will suddenly shift. standards in every job that I Building a genuinely inclusive did. Then I’d look around to find culture and a genuinely diverse what looked interesting, or fun: workforce requires relentless which country I would like to commitment from everybody work in, and on what portfolio. over many years. Of course, I think it’s really important that if there are opportunities you enjoy the journey, as well as to accelerate, to share best focusing on the destination. practice, we should do that. But we mustn’t think this is a Perhaps I was very lucky, simple challenge. but I’ve really enjoyed every job I’ve done. So my advice I’d make one other point. When is: be passionate. Make sure you talk to civil servants, this is you do the things you can be the issue where you can feel the passionate about and you’ll energy levels rise, that this is the make a difference. And – after kind of Civil Service that people all – that’s why you’re here. who choose public service as their way of life actually want to be part of. So it’s not about shifting the behaviours and values of the mass of civil servants. The will to create a diverse and inclusive community is absolutely in the DNA of the sort of people we select and promote. But we have to have the right structures and systems to enable that behaviour, that set Building a genuinely of values – we don’t have to enforce it, but enable it. inclusive culture and diverse workforce requires relentless commitment from everybody 10 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

GETTING TAX RIGHT, FOR EVERYONE

Poli Stuart-Lacey, Director of Communications, HM Revenue & Customs Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 11

MRC is one of the UK’s largest FAREWELL TO HECTOR our strategic objectives Hdigital businesses – with nine (our ‘what’), and our values out of ten of our 2.3 billion annual This approach marks a very (our ‘who’). transactions taking place online. deliberate move away from associating our organisation What we have developed Innovation is important with an old-fashioned man recently is a way to also define to us too, and we take from the 1950s – Hector, the tax our ‘how’: the golden thread pride in creating the right inspector, with the bowler hat that links all of our work, right communication and marketing and pinstripe trousers. Ironically, across the department. It solutions to drive the right Hector was introduced in 1995 speaks to our employees, our response from citizens. In the as the marketing solution to customers, and to our role case of our largest annual encourage people to return their within society, and that is: campaign, this involved a bit of self-assessments, and to give ‘getting tax right, for everyone’. a strategic gamble. a recognisable identity to the Inland Revenue (as it was then We know that for some people FROM TAX MAN TO TAX known). Ironic, because he came we can still seem impersonal DUCK to personify the ‘tax man’ for and faceless – and therefore a a generation of taxpayers, an bit threatening. What we deal While industry best practice association that persists today, with is of paramount importance suggests using positive insights despite Hector having retired in to the millions of individuals, to drive behaviour change, 2001, and despite the diversity families and businesses who we decided to try something of our thriving, modern (and come into contact with us, so different. Whereas before we gender-balanced) workforce. it’s no wonder there can be an used the sense of relief that emotive response to people’s people feel on completing Self SO WHO IS THE REAL TAX relationship with HMRC. And Assessment (SA), in 2018 we MAN? while we want our services to brought in a campaign entirely be as accessible as possible, and focused on a negative insight: So while our ducks do the hard in the main delivered digitally the growing niggle that people work in terms of bringing in the in future, we also want to make told us they feel as the deadline revenue from Self Assessment, sure that the driving principle approaches, and the task who we are is still an important behind our customer strategies remains to be done. question to answer. As an is to be effective, even-handed organisation we are very clear and helpful. To do this we deployed a flock about our purpose (our ‘why’), of rather handsome Aylesbury ducks, who quacked ‘tax’ at customers with increasing intensity as the deadline loomed. These ducks personify that negative ‘niggle’, and in an amiable but insistent way, are intended to tip customers into action.

The gamble worked! Developing a new creative approach, with our ‘don’t duck it, do it’ messaging, helped support our best outcome yet in terms of SA filing rates: 94% of our over 11 million SA customers completed their tax returns by the deadline, and 92.5% did so online. This led to £30 billion going towards public services – up £1.5 billion on the previous year.

The campaign was also more cost-effective, with an 11% reduction in media spend compared to the previous year. For every £1 million spent, we achieved 69% advertising awareness, compared with 29% for our previous campaign. 12 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

The answer lies in better use CUSTOMER LABS of data, improved processes and products, and in increased Putting our customers at the accessibility for customers centre of what we do is of through our online services. vital importance. We now have All of which underpins that two customer labs, where we golden thread of ‘getting tax bring customers into HMRC right, for everyone’. so we can hear about their experiences first-hand and We want customers’ experience involve them in the design of to be effortless for the majority, new services. Located in Shipley, and straightforward for the Yorkshire, and London’s Canary small and medium-sized Wharf, these labs are all about business community. We want innovation and among the first customers to remain at the of their kind in government. heart of the way we plan and design our services, and for Focusing initially on better ‘value’ to mean what benefits understanding the big life or both the customer and HMRC. business events that cause customers to contact us, the lab BEHAVIOURAL TRIALS teams have already delivered insights on young people Our 2017/18 SA campaign saw moving into work, as well as the culmination of three years individuals claiming a pension of behavioural trials to establish for the first time. the most effective frequency and timing for sending reminder The labs also looked at all of the THE CHALLENGE OF A texts and emails to customers. steps that tax credits customers CHANGING WORLD Targeting customers who, based went through in making their on our data, were most likely annual renewal (their customer Our public services rely on to miss the deadline, we sent journey). It showed that more everyone paying the tax they more than 6 million texts and than 140,000 calls came from owe. In 2017/18 we collected emails, with each customer people who – understandably £605.8 billion, a 5.4% increase receiving the optimum number – just wanted reassurance that on the previous year, from of reminders based on everything was fine. So we sent around 45 million individuals previous trials. out 22,000 personalised text and 5 million businesses. At messages last summer – with the moment, the UK has one of We also tested the timing nine out of ten recipients telling the lowest levels of uncollected of the messages, with some us it gave them what they tax in the world – just 5.7% – customers receiving two needed, so they wouldn’t need which we’ve achieved while reminders in December, while to call. undertaking one of the biggest the others received all four in transformation programmes January. Compared with our MOBILE APP in Europe. Our digital previous three years of trials, we transformation has played a found that sending two early This work led to the ‘Track My large part in this. reminders cut the probability of Payment’ part of our HMRC late filing by up to 20% for some mobile app, which aims to But as the world around us also specific customer groups. reduce the more than half a changes, continuing to reduce million calls we get each year that tax gap (the difference Other approaches we use more from people wanting to know between the amount of tax generally range from ‘nudge how much they’re going to get that should be paid to HMRC, letters’, where we prompt and when. and what is actually paid) is an customers to check the tax ongoing challenge. The rise of information they’ve given The HMRC app, which is free the ‘gig economy’, for instance, and if necessary correct it, to to download, also enables has led to people working in online toolkits, webinars and customers to see their tax new ways – multiple jobs, higher educational workshops for liabilities, track the progress turnover of employment, and specific customer groups and of forms and letters and check more changes of circumstance agents. In particular, our tailor- other details. Once a customer – all of which can affect made YouTube ‘how to’ support has completed the registration individuals’ tax codes, and films were watched more progress, they can sign in using increases the potential for error than ever before because we a PIN, fingerprint authentication to creep in. So how are we rising embedded them in the online or facial recognition. to this challenge? return process. Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 13

feeling they get from putting it off. So we created a bold, new campaign around the simple message: ‘Don’t duck it, do it’, with our Aylesbury ducks quacking ‘tax’ to encourage customers to take action. The number and noise of the ducks increased as the deadline approached, through carefully timed and targeted prompt messages for maximum impact. The popularity of the app is backed up by figures, which show IMPLEMENTATION that 20% of users access it more Our total marketing campaign than 20 times a month, compared budget of £1.2 million, with a with 2% of website users. media spend of £855,000, was 11% lower than the previous WORKING IN PARTNERSHIP year. We used an integrated DON’T DUCK IT, DO channel mix covering traditional Many of our customers are IT - HMRC’S SELF and social media; direct mail, self-employed and may use an ASSESSMENT CAMPAIGN including letters, emails and accountant or agent to manage SMS; stakeholder and employer their tax affairs for them, so relations; and advertising, we’re making it even simpler for OBJECTIVES including posters, radio, digital, them to submit their tax return Our annual Self Assessment Facebook and paid-for search. via third-party apps. Of the (SA) campaign aims to help All channels directed the 9.9 million SA tax returns filed customers across the UK file customer to take action and online in 2017/18, around 60% their tax returns by the 31 complete their SA return by were via third-party apps. January deadline and pay what 31 January. they owe. This supports HMRC’s New application programming strategic objective to maximise SCORING interfaces (APIs) enable these the collection of revenues due, We achieved our best-ever filing users to access data HMRC and bear down on avoidance rate – 94% of our SA customers already holds about them. and evasion. filed their tax return by the And they enable us to send deadline. For every £1 million back a calculation, so that we AUDIENCE spent on our ducks campaign, can collect the right amount of Our audience is just over 11 we achieved 69% advertising tax at the right time. During a million SA customers, from awareness – compared with recent pilot, agents using all walks of life, including 29% for our previous campaign. third-party apps reported 15% landlords, construction workers Our innovative approach was, less need to contact their and pensioners. Our campaign therefore, significantly more clients and 19% less need to specifically targets those cost-effective. contact HMRC. who don’t use an agent or accountant to handle their LOOKING TO THE FUTURE tax affairs.

These are just some of the STRATEGY ways that we’re rethinking tax Data-driven audience insights collection, in order to invest in collected over the past 10 years the UK’s public services and and ongoing test and learn support a strong economy. As activity told us barriers we bid Hector a (fairly) fond to meeting the deadline farewell, we move into a new era range from procrastination of digital delivery, behavioural to confusion about the science, data, insight and filing process. operational excellence – all designed around the needs of Our previous campaign was our customers, and led by a based on using positive diverse and talented workforce. behaviour to drive our call to And this is what we mean by action – achieve ‘inner peace’ getting tax right, for everyone. after completing your tax return. But more of our customers said they related to the ‘niggling’ 14 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

TRANSFORMING FRONTLINE SERVICES THROUGH BETTER DATA SHARING HOW THE DIGITAL ECONOMY ACT IS REVOLUTIONISING THE WAY SERVICES ARE DELIVERED ACROSS GOVERNMENT

Lee Pope and Paul Blake, Data Policy and Governance Team, Department for Digital, Culture, Media & Sport

Lee Pope Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 15

here is little dispute that the more easily among public their disposable income on their Ttargeted use of government- authorities to improve the way water bill and 11% spend more held personal data, shared policy is developed and public than 5% of their income. The between the bodies that can services are provided. proportion who say their bills make best use of it, has the are ‘an unaffordable’ is also 11%.1 power to fuel smarter public The public service delivery services and improve lives. power (Chapter 1 of Part 5 of All water companies offer the Act), for example, allows a social tariff for customers It is also undeniable that public government to set specific struggling with affordability. trust in the sharing of data has purposes for data-sharing via However, research by CC been eroded by a succession regulations, as long as they Water (the water watchdog for of well-publicised incidents meet specific criteria defined England and Wales) shows that including the Cambridge in the primary legislation. This while take-up of water company Analytica controversy. Against means that public authorities assistance schemes – including this background, government can address new data-sharing social tariffs – is improving, it is taking a lead in sharing needs in priority areas without remains relatively low. There’s personal information securely, government having to introduce a mismatch between how fairly and proportionately. From new primary legislation each many people say that bills are addressing water poverty, to time, which can be a lengthy unaffordable and how many are helping families with complex and resource-intensive process. getting help through a social needs, sharing data between Parliament has approved tariff. At the moment, customers public authorities helps regulations setting the first have to proactively request government operate more four objectives as: addressing help with their bills, so it can be efficiently and effectively. ‘multiple disadvantages’, fuel difficult for water companies to poverty, water poverty, and identify and support those who The Data Protection Act 2018 targeted assistance in re-tuning need it. and GDPR (General Data televisions following spectrum Protection Regulation) are key changes. Further objectives The powers in the Act elements in a new framework can be set through secondary allow information to be of rules to ensure the fair and legislation, providing they meet shared between water and lawful processing of data. We criteria set out in the Act and sewerage companies and are also developing a National are ultimately approved by other organisations. This will Data Strategy. This has the Parliament. help water companies to overarching aim of unlocking identify customers who need the power of data across There have already been initial assistance with their bills and government and the wider discussions about potential enable them to offer those economy, at the same time new objectives. The Scottish customers their social tariffs. as building public trust and Government, for example, is It means customers should confidence in how it is used. developing a proposal to share be able to get help with their Another important aspect is the data from the Department bills more quickly, without the introduction of provisions for for Work & Pensions and HM awkwardness and delay of information sharing within Revenue & Customs to identify having to ask for it or to Part 5 of the Digital Economy eligible families who can give consent. Act 2017. benefit from early learning and childcare support for Public sector access to data has 2-year-olds. been hindered by a complex legal framework that has TACKLING WATER POVERTY grown piecemeal over time. Public authorities have found In the case of water poverty, it increasingly difficult to the Act allows the sharing of understand what information information between certain they can share. The powers persons and organisations within Part 5 of the Digital to support those living in Economy Act are designed to water poverty. There isn’t a help overcome these legislative strict definition of what water barriers. The powers became poverty is, but in the context fully operational in July 2018, of the Digital Economy Act, it when codes of practice were is roughly defined as people published on GOV.UK. who have water and sewerage This opened up exciting bills that are unreasonable to opportunities for sharing data them. Some 24% of households are spending more than 3% of

1 https://www.ccwater.org.uk/wp-content/uploads/2018/10/Affordability-and-vulnerability-in-the-water-sector-2017-18.pdf 16 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

HELP FOR DISADVANTAGED help support locally. Now, for HOW YOU CAN USE THE HOUSEHOLDS example, the benefit status of POWERS an adult in a troubled family can Another example of the benefits be shared with a local authority Water poverty and troubled of the new provisions for data that needs to prioritise the families are just two examples sharing in the Digital Economy families most in need of support. of the transformational power of Act Part 5 is the ‘multiple data sharing. The Act allows for disadvantages’ component. For the partners in the Troubled many more initiatives over the This allows data sharing Families Programme, this will coming months and years. between public authorities save a lot of time, energy and to help identify individuals money. For instance, they For more information about or households that face two won’t need to explore the using the public service delivery or more disadvantages. One need for, or establish, a legal power, please speak with the beneficiary of these powers gateway for sharing information. secretariat to the Public Service is the Troubled Families Instead, because the multiple Delivery Review Board, or board Programme, which aims to disadvantages objective members from your respective help families with multiple and provides the legal basis for departments. You can also find complex needs. These families sharing information, the focus information about the review may have a mix of problems can be on setting up the board by emailing that involve multiple agencies. information-sharing agreement dea-general-enquiries@culture. The core approach of the among the relevant parties. gov.uk programme is to give them a The biggest benefit will be to single key worker who has the the families themselves, who You can also find out more time to understand a family’s will receive far better co- about the other powers within whole set of problems. ordinated services. It will do Part 5 of the Act from the policy away with the emotionally leads for the implementation of Apart from working with the draining process of repeatedly that respective power. family to understand what explaining their circumstances their problems are, what their to different agencies. The table below outlines who strengths are, and agreeing a is responsible for rolling out plan together, the key worker each power. helps co-ordinate the services they receive. This is where the information-sharing measures in the Digital Economy Act Part Chapter Power description Lead body 5 are truly transformational. Before the powers came 1 Improving public service delivery DCMS into force, the data sharing legislation that key workers Sharing civil registration could draw upon was difficult to General Register 2 information more widely among understand, hard to implement Office specified public bodies and not purpose built. The result was that key workers often Recovering debt owed to the lacked the confidence to 3 Cabinet Office public sector share information.

Combating fraud against the The new powers change all that. 4 Cabinet Office They not only give clear legal public sector guidance as to what information can be shared, but also provide Supporting research for the UK Statistics 5 a code of practice on how to public good Authority set up information-sharing agreements between partners. Disclosure by revenue authorities The code allows data sharing 6 of de-identified data in public HMRC agreements covering all of interest the relevant partners for early Supporting the production of UK Statistics 7 national and official statistics Authority

With the powers in place, the onus is now on civil servants across government to take up the mantle and drive the benefits from greater data sharing between agencies. We’re excited to see what happens next. Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 17

MAKING POLICY IN THE this conversation and assess disagreement, Involve and the OPEN what the consensus appeared Cabinet Office Data Sharing to be. Involve also played the Policy Team played a mediation The data sharing powers of the critical role of ensuring that role. All participants remained Digital Economy Act 2017 Part all voices were heard and independent and there was no 5 were developed through an that conclusions derived from expectation of consensus being ambitious open-policy-making discussions were fair, balanced found on all issues. However, process. Civil servants across and accurate. working groups were focused on government departments achieving the highest possible worked collaboratively with over The process was open to level of agreement. 50 public sector, civil society anybody with an interest in the and privacy organisations for debate. Involve was responsible The result was a completely more than two years to develop for engaging civil society open process, which concluded the legislation. organisations and experts, and in March 2015 with the release the Cabinet Office for engaging of a policy paper, outlining It was the most challenging public sector bodies. A series the areas of agreement (and exercise in open policy-making of meetings was held around disagreement) reached by carried out by government, the UK. As far as possible, those involved. given the sensitivities around meeting times were set well in the issue of data-sharing and advance to enable attendance, the breadth of the policy while allowing for remote areas that fell within its remit. participation where feasible. The work involved combining civil society engagement with The process depended on government departments to mutual honesty and trust explore the benefits, risks, from all involved. All groups limitations and governance were expected to engage for sharing personal data constructively, and participants within government. were asked to raise issues as early as possible. In cases The ethos of the project was to where there was significant have a conversation on what the evidence base said about the problem and how data sharing could address it. Independent not-for-profit organisation Involve was brought in to broker 18 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

GETTING FULL VALUE FROM GOVERNMENT SPENDING

Sir Michael Barber

s government departments The following year, the Prime Aprepare for the 2019 Minister’s Delivery Unit (PMDU) Spending Review, the focus was established to work on once more is on the perennial priority targets, from among challenges of improving the PSAs, to bring visibility and public sector productivity and challenge to how departments measuring how taxpayers’ sought to deliver those targets. money is converted into the In successive Spending Reviews, best results for the public. in 2002 and 2004, this process In 1998 the Treasury introduced was sharpened further. the first Public Service Agreements (PSAs), in which From 2003 the staff of the departments agreed to targets PMDU were located in the in return for their spending Treasury building, collaborating review allocation. In the first with Treasury colleagues in decade of this century, Britain a concerted effort to deliver actually became a improved outcomes for world leader in managing citizens across the whole of public money. public expenditure.

In 2000 the Spending Review PSAs were refined, the number of targets reduced and the remaining targets refined. Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 19

However, these successes LOSS OF FOCUS were achieved in a time of rising public expenditure and The major drawback of this there was less focus than there phase, however, was the loss of should have been on controlling focus on outcomes for citizens. expenditure and ensuring PSAs were abolished, as was the efficiency. Delivery Unit, while the Treasury, understandably, focused on DRASTIC MEASURES being frugal – which is, of course, one of its core purposes. After the financial crash of In 2016, the Chancellor, Philip 2008, public expenditure came Hammond, and his then Chief under intense pressure as the Secretary David Gauke decided British (and other) governments to address this problem. sought to stave off catastrophe both by bailing out some banks They asked me to produce and reflating the economy. As a report on efficiency and a result, in 2010, the incoming public value that would draw coalition government found together the successes of itself, of necessity, seeking the previous two decades, not just to control public combining a continuing focus expenditure but to reduce it. on controlling expenditure with a renewed emphasis on Prime Minister David Cameron, delivering outcomes – real value Chancellor George Osborne and – for taxpayers. The Chancellor Francis Maude in the Cabinet emphasised throughout that, Office took drastic measures. while there had been some These included reducing successful efficiency reviews the number of civil servants, in the past, they had all been capping pay rises for all public “episodic” – here today, gone servants, radically reforming tomorrow. This one, by contrast, procurement and selling off needed to change the way the HM Treasury government estate. In their Treasury did its core business. own terms, these efforts were highly successful. Again, the It was an opportune moment British became widely admired to examine public value. For INTERNATIONAL by governments around the the first time since Margaret RECOGNITION world: while others talked about Thatcher left office, both the gripping public expenditure, PM and the Chancellor had No one would pretend this the British got on and actually experience of being Secretaries process was perfect. There were did it. of State in large spending some poorly designed targets, departments. They knew what it some weak data collection As with the previous decade, was like to be on the receiving processes and ongoing complex this phase was not without end of the Treasury during a debates about areas of activity problems. It was crude, if period of austerity. Liz Truss, that weren’t priorities. But effective, and sometimes who became Chief Secretary overall it worked and worked prioritised the short term at (on David Gauke’s appointment well. It helped deliver outcomes the expense of the long term. to the Department for Work – significantly reducing crime, But there were also enduring & Pensions), while my report improving railway performance successes above and beyond was being written, had similar and, perhaps most significantly, the reduced expenditure experience. All were interested dramatically reducing health totals – the Government Digital in permanently improving waiting times. There was Service, for example. And the the quality of the relationship widespread international Civil Service itself became both between the Treasury and recognition of this from, for increasingly diverse and more spending departments. example, the IMF. effective under the inspiring leadership of Jeremy Heywood. 20 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

CHIEF PROPOSALS 1. Public value and the process lights such as Mark Moore, for delivering it should be Professor at the Harvard My report, developed with an understood in a new way. Kennedy School. This outstanding team of Treasury This would build on recent central part of the report officials, was published experience in Britain and is summarised in the two alongside the 2017 Budget. Its draw on the academic work slides below. chief proposals were as follows. on public value by leading

PUBLIC VALUE FRAMEWORK Relationship between funding, pillars and outcomes

OUTCOMES

1 2 3 4

GOVERNMENT FUNDING

PURSUING MANAGING ENGAGING DEVELOPING GOALS INPUTS USERS AND SYSTEM CITIZENS CAPACITY £ Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 21

PUBLIC VALUE FRAMEWORK Pillars and areas to consider

Four pillars 16 areas to consider

1. Pursuing goals i. Understanding goals and indicators ii. Degree of ambition iii. Progress towards indicators and goals

2. Managing inputs i. Processes to manage resources ii. Quality of data and forecasts iii. Benchmarking and cost control iv. Cost shifting

3. Engaging users and citizens i. Public and taxpayer legitimacy ii. User/client experience and participation iii. Key stakeholder engagement

4. Developing system capacity i. Culture and capacity of department or agency ii. Understanding of and engagement with delivery chain iii. Culture and capacity of leaders and staff iv. Governance and project management v. Quality of existing data systems and feedback loops vi. Inter-departmental collaboration

Charts taken from the report ‘Delivering better outcomes for citizens: practical steps for unlocking public value’ (2017)

2. The ultimate goal of the 3. The first two pillars are the that where the quality of a framework would be culmination of the history public service depends on for each department to I have recounted. The first the relationship between show how it would use relates to delivering defined user and service, this its spending allocation to outcomes within a defined relationship is consciously deliver outcomes through period, and the second to developed. In this context, all four pillars: pursuing checking that budget is we should consider health goals, managing inputs, spent on what it is intended outcomes and diet, or the engaging users and citizens, for, and spent both rationally role of the passenger in and developing system and efficiently. ensuring security on the capacity. And for this railways. If we strengthen combination to represent a 4. The third pillar brings in the this relationship, more value broader and more practical relationship between the will be delivered at minimal, definition of public value citizen and the state. It is perhaps no, extra cost. than Britain (or any other not about polling popularity. country for that matter) It is about checking has ever had before. Each that public expenditure of the four pillars makes a has legitimacy from the different contribution and, taxpayers’ point of view, and taken together, they make a coherent whole. 22 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

5. The fourth pillar is there RECOMMENDATIONS SPENDING REVIEW 2019 because value for the public isn’t just short and medium The Treasury team piloted In November 2018 the National term – it is also long term. the framework in several Audit Office (NAO) criticised Through the framework departments during 2018. the Treasury for not paying we aimed to encourage Generally, the pilots have been sufficient attention to the public servants, everyone successful, improving with delivery of outcomes from from headteachers to experience. We will soon publish public expenditure. I hope I permanent secretaries, to an updated, simpler, clearer have shown that the Treasury aim to leave the institutions framework, with new advice has been aware of this issue they manage in a better on how to apply it. for some time, and has been condition than they found preparing to step up to the them. This is stewardship, The report made a number of challenge from the NAO. and it is fundamental to other recommendations. The long-term value. Explicit most important are: In preparing for the 2019 recognition of this has been Spending Review, the Treasury entirely missing in spending 1. In any spending proposal, is considering how the Public allocation and monitoring. each department should Value Framework and the other spell out the data it will recommendations in my report 6. Behind the pillars lies the gather and analyse to check might inform the structure and detail set out in the Public progress towards outcomes. process of the review. Value Framework, which In short, data systems is designed to enable the should come as standard. We can expect a renewed Treasury and departments emphasis on outcomes and how collaboratively to review 2. Once data is flowing, progress towards them might be large budgets and see how departments should be able pursued and monitored. they might create extra to deliver marginal gains public value. in improved performance The Public Value Framework continuously, without extra is potentially a major advance funding. on both delivery, under Tony Blair, and expenditure control, 3. In any departmental under David Cameron. This is, spending review proposal, firstly, because it brings both the Treasury should expect together and, secondly, because to see one or more areas the inclusion of the third and where the department fourth pillars expands what we proposes not just marginal understand by public value. A gains but disruptive government department that innovation, perhaps through demonstrably pursues all four applying technology to pillars will be able to show that a process. Such change it is not obsessing about short- should deliver significantly and medium-term goals and improved outcomes at spending efficiency – important significantly reduced cost. though these are – but seeking to build legitimacy (pillar 3) and exercise stewardship (pillar 4). Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 23

MAJOR PRIZE

This would be a major underlying reform of the way public expenditure is managed. It would be radical, practical and world-leading. More importantly, in an era when citizens internationally are reluctant to pay more in taxes and determined to see value for money, it could build public confidence in how the country’s affairs are managed. That would be a major prize.

Efficiency reviews would cease to be episodic, exactly as the Chancellor has urged, and the relationships between Treasury and departments put on a firmer and more rational footing. Above all, we would have created the foundation for an ongoing, informed public dialogue about what public money should buy and whether it is being delivered.

HM Treasury 24 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

LEADING THE WAY TAKING THE CIVIL SERVICE’S BIGGEST LEARNING AND DEVELOPMENT EVENT TO THE NEXT LEVEL

Amrita Devaiah, Head of Civil Service Live, Cabinet Office Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 25

aking on the mantle of What Civil Service apprentices TCivil Service Live is a mildly volunteering to support Civil daunting task, especially as a Service Live 2019 say: brand new civil servant! Heading into its 12th year, Civil Linda Mogie, HM Revenue & Service Live has gone from Customs, Newcastle strength to strength. Civil “Being involved in Civil Service Live 2019 is set to be the Service Live offers me the biggest yet, playing host to close opportunity to share learning to 20,000 civil servants in seven and development tools and cities across the country over techniques; to see what other eight event days. government organisations and private sector bodies are doing As an events manager, I have on best practice; to try new always believed that an excellent things and apply what I learn event lives and dies by its with my own team.” content. By that, I mean content that tells a story, that has a clear Jenna Steen, Ministry of Justice, purpose and simple, achievable Liverpool objectives. For Civil Service Live, that comes down to three words “I attended Civil Service Live for – educate, engage, inspire. the first time last year and it was the most inspiring event I have Civil Service Live 2019 will be ever attended – helping bigger, yes. But it will also come others in this way is a really with some changes, adding up exciting prospect!” to a distinctive identity that links it – both visually and as an Melanie Crysell, UK experience – with the vision Hydrographic Office, Taunton of ‘A Brilliant Civil Service’. “I’m excited to be part of Civil Service Live. It is such an What can you look forward to? inspirational learning event, A new website, more interactive where I feel I can learn so much sessions, less paper and more from civil servants across the opportunities for civil servants to country to bring back to my network, engage with colleagues day job.” and leave having learnt something new and inspiring Becca Wigfall, HM Revenue & they can take back to their jobs. Customs, Cardiff “I look forward to being a part of the Civil Service Live team. The Civil Service is facing a challenging and exciting time. Our leaders will be key in inspiring and leading our businesses through this period to deliver exceptional services to the public.”

Amrita Devaiah (centre), Head of Civil Service Live, and Amy Crean (front right), Volunteer Coordinator, surrounded by apprentice volunteers: Yaw Appiah-Boateng (Department for Business, Registration for Civil Service Energy & Industrial Strategy), Live 2019 opens on 25 April Melanie Crysell (UK Hydrographic Office), at www.civilservicelive.com Stephen Heasman (HM Courts & Tribunals Service), Kirsty Hopkins (Office for National Statistics), Linda Mogie (HM Revenue & Customs), Niamh Mooney (Crown Prosecution Service), Stephen O’Connell (Ministry of Defence), Jenna Steens (Legal Aid Agency), Rebecca Wigfall (HM Revenue & Customs) 26 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

OVER 10,000 PROBLEM SOLVERS AT YOUR DISPOSAL Dr Patrick Vallance, Government Chief Scientific Adviser

I think the question ‘How can science help?’ is still too rarely asked across Whitehall Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 27

ssentially, the role of However, I think the question announcement of a UK strategy EGovernment Chief Scientific ‘How can science help?’ is to protect the world’s oceans. Adviser (GCSA) is to ensure still too rarely asked across The science of climate change that the Prime Minister and the Whitehall. It should be asked led directly to the 2008 Climate government have advice based more often, as there is virtually Change Act, making the UK on world-leading science, and no issue that government faces the first country to introduce that policies and decisions that science cannot help with legally binding long-term are informed by scientific or inform. carbon reduction targets. On a evidence and strategic long- more technical level, our report term thinking. Science is often thought of as on distributed ledgers outlined a big body of knowledge, but their potential to transform the I started as GCSA on 4 April 2018. in reality that knowledge has private sector, policy-making emerged because of science. and public service delivery. This is my third – or maybe Science is a rigorous method, fourth – career. I trained an approach, for framing and as a doctor specialising in answering questions to increase PUTTING SCIENCE AT THE cardiovascular diseases, and understanding and help solve CENTRE OF GOVERNMENT – enamoured with research – problems, and one that can became an academic, eventually be supported by specialist If we are to strive for a better leading the department of technical know-how. and fairer society, then science Medicine at University College has its part to play. Science London. Subsequently I moved During my various introductory needs to be seen broadly, into the private sector as meetings across government I encompassing all its aspects, head of drug discovery and, met leaders who said (rightly) from the physical sciences later, head of research and that their departments were not to the social sciences and development for a global science-based. It’s not about humanities. Many of the most pharmaceutical company, and whether you need laboratories useful insights come when now this. – it’s about what problems you these different disciplines have and how the method of come together. Like my move from a life in the science and the thinking of a NHS and university sector to scientist or engineer can help Positioning scientific evidence become part of a multinational provide some answers, or some at the centre of government company in the private sector different approaches. This is a thinking can’t be the job of a discovering new medicines, form of diversity: as Desmond small group. It means harnessing the transition from GSK to Tutu has said, “differences the power of the network government took me out of are not meant to alienate or of over 10,000 government my comfort zone and into a separate, we are different scientists and engineers who new world. precisely in order to recognise work in a range of specialist, our need of one another”. deep specialist, policy, analytical What did I find? Well, for sure, and operational roles across the the Civil Service is full of clever whole of the UK. people who want to do the right HOW SCIENCE CAN HELP thing. But it’s clear that science I want to see more scientists in is not embedded in the system. At its best, science has played all Civil Service development We are relatively short of people a big part in developing cross- programmes, including trained in science, and the reflex government policy. Take for apprenticeships, the Fast to call for science to help solve example the way in which our Stream and senior development problems or give new insights report ‘Tackling Obesities: initiatives – because we is not well developed. There are Future Choices’ led to the very need more scientific thinking pockets of real excellence, and first obesity strategy in England: embedded in everything we do. some great examples where ‘Healthy Weight, Healthy Lives’ science is both called upon and its 2011 successor ‘Healthy and used. Probably the most People, Healthy Lives’. Similarly, striking example in my time so our 2017 report on the ‘Future far has been the central role of the Sea’ directly influenced that science advice played a wide range of government during the novichok poisonings activity – most notably the in Salisbury. But there are many other examples, where departments from DEFRA and DfT, to DHSC and MOD, draw on science and understand how it can and should be used. 28 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

EMERGENCY RESPONSE

The Government Office for recommendations on how to I also chair the Scientific Science, which I head, holds increase the UK’s attractiveness Advisory Group for a unique position in the Civil to science investment and Emergencies (SAGE). In an Service, with the ability to stimulate more growth from our emergency, we bring together work on issues that cut across universities, in support of our leading experts in relevant departmental boundaries, commitment to research and fields to provide science advice gathering evidence from all development investment of for COBR. sides of a debate. Part of 2.4% of GDP by 2027. our role is to be proactive, Almost on my first day, SAGE anticipating and understanding I also provide leadership and was convened to advise on the topical science and technology expertise on new and existing acute and long-term health risks issues. We are also often asked Industrial Strategy priorities, of the nerve agent poisoning directly by No.10, ministers and using our scientific and horizon- in Salisbury, and on the risk permanent secretaries to scanning capability within the to public health during the gather scientific evidence on Government Office for Science incident response and recovery. their behalf to inform their to recommend areas of focus As well as experts in their policy making. for additional grand challenges fields, I had the opportunity to and missions. work with other CSAs from the Here are just a few examples of Home Office, Defra and DHSC. where this has happened in my The departmental Chief The advice helped answer first few months, demonstrating Scientific Advisers (CSAs) operational uncertainties and to the importance of science and I meet weekly to share foster collaboration across the to government. intelligence and discuss CSA network, which covers all challenges. We pool our departments. expertise to reach a shared view INDUSTRIAL STRATEGY on a range of topics, from air More recently the government pollution to modern slavery to announced that additional Science is at the heart of the Brexit, and provide coherent environmental checks are to be government’s Industrial Strategy. action plans for departments. carried out in and around the With the rapid advances in Grenfell Tower site. This is to knowledge and the translation Modern slavery is another reassure the bereaved, survivors of that into innovative products, example of where science can and wider community that any it is essential that the UK make a difference in people’s environmental risks to public gets this right. We are at the lives. It has helped detect health will be fully assessed and very forefront of knowledge patterns of buildings that signal appropriate action taken. I have generation and have some of inappropriate activities, has been asked by the Secretary the very best universities and been used to track movements scientists in the world. We are of people, and has enabled an good, but not quite as good, understanding of the effects of at turning knowledge and slavery in childhood on brain technological advances into development. business advances, job creation and societal benefit.

One of my early commissions was to provide advice on the missions outlined by the Prime Minister in her science policy speech at Jodrell Bank in May 2018. The Prime Minister also asked her independent advisory body, the Council for Science and Technology, which I co-chair, for its assistance in evaluating the UK’s industrial science capability. This was done with a view to making

Sierra Leonean Junior Doctor Marina Kamara and British Consultant Physician in Acute Medicine Terry Gibson discuss an ebola case Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 29

of State at the Ministry of Housing, Communities & Local Government to provide independent scientific assurance of the process. This will be done commercialisation of fusion through a science advisory technologies. A package group who will quality check the of support on quantum science doesn’t feature in your scientific methodology, testing technologies includes the policy development process, process and analysis of results establishment of a National then it should. Each department at each stage. Quantum Computing Centre has a chief scientific adviser. that will lay the groundwork Like me, they are scientists or Government’s response to necessary to try to create the engineers, but our job is not international emergencies also world’s first scaled universal science for science’s sake, it needs our support. During the quantum computer in the UK. is to assist policy. It’s worth Ebola outbreaks in West Africa underlining – science is a in 2014 and 2018, SAGE called I was also pleased to see method of solving problems, on historians, anthropologists, the Budget’s creation of a so bring scientists into your behavioural scientists, engineers, £50-million-per-year science teams. Take advantage of their mathematical modellers and fund to address the most training to bring some diverse, infectious-disease experts from pressing challenges innovative thinking to your around the world. In the Ebola in government. work. Speak to them about outbreak, it was the interplay how science and evidence can between anthropologists, Government is getting better at help inform your policy and infectious diseases specialists understanding where science assess the impact of the and epidemiologists that helped can help. Each department has policies you have introduced. identify the crucial importance now produced a statement of burial traditions in the spread of Areas of Research Interest, of disease from funerals. listing those places where science can help with the most important issues. FUNDING Hopefully it is clear why, if Science can also give departments the confidence to spend money on new areas. In the 2018 Budget our advice helped secure £20 million in 2019/20 for the UK Atomic Energy Agency to accelerate its groundbreaking work on the development and

Service personnel in protective gear in Salisbury during the clean-up operation after the nerve agent attack 30 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

LATVIA’S NEXT 100 YEARS: MODERNITY ROOTED IN HERITAGE

Baiba Braže, Ambassador of Latvia to the UK Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 31

he 2018 centenary of the select loyal and capable officers, a crucial role in preparing the Testablishment of the Latvian and on finding the resources successful campaign for Latvia’s republic provided Latvians with to maintain them. These tasks international recognition at the an opportunity to reflect on how were carried out in a legal Paris Peace Conference after far we have come as a nation and vacuum, with regulations on the the First World War. They then to look to the future. Civil Service and government negotiated international treaties, institutions yet to be adopted. prepared budgets and laws, Latvia’s successful development and laid the foundations for a is based on our own self- This was the situation in Latvia. successful state. This central confidence, the stability of An additional complication was role meant they were one of the international rules-based that hostilities on our territory the first targets for the Soviet system, and close alliances resulting from the First World and Nazi authorities during the with like-minded states. War continued until 1920. successive brutal occupations With 2 million people in a during and after the Second territory twice the size of Regulations for a new Civil World War. the Netherlands, there is no Service were adopted by the alternative to ensuring full provisional government in 1918. The only Civil Service institution equality, using all our human However, the recruitment of civil to function without interruption capital, while digitalising public servants was rather informal: for all 100 years was the services, providing education officials were appointed diplomatic service. This was for all and the freedom to do without formal procedures, possible because the Latvian business, supported by often without a written letter of Embassies in the US and the smart regulation. appointment. UK – who never recognised the illegal Soviet occupation Since the establishment of the In 1920 the Law on the Civil of 1944 to 1990 – continued to republic, Latvia’s Civil Service Service was adopted, facilitating perform limited state and civil has played an important a permanent public service. service functions during the role, ensuring international (Interestingly, it provided for occupation. This ensured de jure recognition, the continuity an official’s salary to be raised continuation of the Republic of statehood throughout the by 10% of the basic rate every of Latvia and supported its Soviet occupation, and the five years.) By the time the restoration in 1990 to 1991. country’s eventual rebirth as an Constitution was formally independent nation in 1991. adopted in 1922, a professional and well-regulated civil service was already established. THE CIVIL SERVICE: CONTINUITY AND Since then, the Civil Service STATEHOOD has often been the driving force behind the most In 1918, government institutions important developments for in newly established states had Latvia. Civil servants played to be created anew and in a hurry. Decisions had to be taken on which institutions and posts should be established, how to 32 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

The Civil Service was reinstated in 1991, when Latvia faced the immediate challenges of removing Russian troops, rebuilding a democratic, open and inclusive society, its reintegration into the North Atlantic community, restructuring the economy and state administration, and ensuring national security. Soviet structures were abolished and a new, modern Civil Service system was built. Some ministries, including those for was strengthening Latvia’s can only be compared with the the interior and the economy, independence and security. revolution in literacy and the underwent drastic reform, while access to knowledge triggered others, such as foreign affairs During this process, Latvia has by the invention of the printing and defence, were rebuilt from co-operated closely with its press in the 16th century. the scratch. international partners, including the UK, which has provided With the digital revolution, in This period was characterised know-how transfer since the Northern Europe, including the by huge national enthusiasm early 1990s (through Crown Nordic Baltic States and UK, and commitment. Many exiled Agents, for example), as well as we have the opportunity to Latvians, including many young training, scholarships, and UK take our countries and people people, returned from abroad civil servant secondments to to a qualitatively new level of to go into public administration, Latvia during our EU presidency. development. This will change politics and the private sector. everything – in education, higher Latvia was reborn, and it was OUR NEXT 100 YEARS education, on-the-job training, the strong foundations of and vocational training – with the 1918 republic that made Today, Latvia is as safe and horizontal links demolishing it possible – providing for the secure as it has ever been. Much the silos that isolate different continuation of democracy, of the credit for this goes to our groups, whether in the public an open economy, and allies and friends in the world, in and private sectors, academia, human rights. particular to the UK. or among NGOs and other sectors. The lack of recent experience Latvia faces a new set of tasks and institutional memory and challenges: notably, the How do we achieve that? Should was sometimes a challenge. need to maintain economic we regulate or not? What do However, it also allowed for growth and develop our people, we do at the EU level, and what more innovative thinking. The while ensuring security and the at the national? How do we Civil Service learnt as it worked, defence of the country. achieve co-operation between implementing the big political the big profit-driven technology goals. Not least among these Another challenge is our mobile companies? How do we keep was fully re-establishing the population: for example, some our populations, businesses and institutions of an independent 117,000 Latvians currently reside inventions safe? One answer is country, but they included in the UK. close international co-operation ensuring the withdrawal of – and I do hope that Brexit Russian troops, joining the The rise of digital technologies does not spoil our excellent EU and NATO, chairing the is a great opportunity, but co-operation with the UK at EU in 2015, joining the OECD requires a society-wide effort all levels. and preparing the centenary to give everyone the skills to celebrations. The ultimate exploit it. The current age of goal of all of those decisions opportunity in Northern Europe Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 33

an important role in motivating • significant reduction in and supporting everyone to bureaucratic procedures contribute. internally and in external communication with The recently adopted diaspora the public law (which came into force on 1 January 2019) is a prominent • use of modern technologies Geopolitics remains the greatest example of this drive for and innovative digital solutions challenge for Latvia, as for the universal engagement. in public administration, whole Euro-Atlantic community. in addition to the existing Today, targeted action by an The new law provides a legal services, including e-Latvia – aggressive Russia to undermine framework for state and relevant the online state service portal Western democracies and stakeholders to engage more – e-signature and e-health weaken the international rules- and create new platforms for based system, the development co-operation with Latvians There is a legend which says of modern technologies, a overseas. It is an important that Latvia’s capital, Riga, will borderless yet fragmented signal of how we want to never be ready, and that if information environment, and transform the relationship one day someone concluded citizens’ high expectations of between the state and our that it was, it would sink with their governments all demand a ever-more-mobile citizens, and all its people. This can also be national effort of resilience. a litmus test of the outward- applied to the development of a looking and open society we system of public administration And it is the public want to create. It is also relevant – it can never really be said administration that needs in the context of Brexit. Mobility to be ready. As the needs of to engage with civil society based on non-discrimination society and the state change, and individuals to facilitate and the portability of social it has to change and adapt in a resilience-building process security will be a crucial element order to serve effectively. throughout the country – not in maintaining the close least in creating greater ties between our countries public awareness of the and societies. importance of cyber security, and promoting media literacy The evolving approach is and critical thinking. the reason Latvia in 2018 introduced a new three-year Horizontal co-ordination within public administration reform government and society has programme. It has three main been the answer of choice directions: for Latvia. Ministries such as transport, welfare, health, • development of human and education, which are less resources, investment in involved in the traditional education and training of security areas, are now integral civil servants to limit the size to the whole government of the administration while resilience effort. At the same increasing its efficiency time, NGOs, interest groups and civil society activists have found their place in the picture. The Latvia 100 campaign has played 34 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

LATVIA TODAY

• 9th most literate nation in the world

• Women and men have equal rights to vote and be elected from the first day of foundation of Latvia in 1918

• Highest proportion of women in managerial positions (53%) in the EU and highest proportion of women among doctoral degree holders (60%) in the world

• Almost everyone is bilingual, and more than 60% speak three languages

• Responsible for the first Minox camera, first drone jump, quantum computing, Europe’s first computer vision sports laboratory, LATVIA 100 wind tunnels that allow people to fly In preparing for the centenary, it expressions, the achievements was clear that it should be used of science, innovation in the arts • In the top 10 countries to reflect the country as it is and creative industries, and our globally for fixed internet and to help shape its future. natural landscape. speed, and the top 20 for mobile internet speed The Latvia 100 celebration, Countless groups and under the slogan ‘I am Latvia’, organisations – from • The government portal was designed to make every businesses to NGOs, to choirs, Latvija.lv provides hundreds member of the community feel fraternities, firefighters, of digital services to anyone a sense of personal engagement gardeners, and communities with Latvian ID anywhere and identity with the nation. It of friends and neighbours – in the world to pay taxes, had a particular focus on the organised and participated in communicate with local and young and how they relate to events, as part of a genuine central government, apply Latvian statehood, our cultural nationwide movement. for permits, make payments, heritage and its contemporary and so on

• The national ID card is not only a digital ID, but also a travel document and safe electronic signature Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 35

FOUNDING PRINCIPLES • Transparency – information • The European dimension – on income disclosed to the our EU Council presidency in The Latvian public public, with close scrutiny by 2015 broke down silos within administration is built on the Anti-corruption Bureau, the Latvian public sector, certain principles. State Revenue Service, State involving the private sector, Controller, and the media academia, NGOs, and the • Efficiency – a relatively media – among our significant small national civil service, • Mobility – merit and talent- achievements as president conducting the full spectrum based career growth, allowing were: launch of the EU of government services responsible higher-level Energy Union; the agreement positions been taken by abolishing mobile roaming • Equal opportunity – gender capable younger professionals charges; the drafting of GDPR; balance, including in senior the launch of the Digital positions; fair social security • Language skills – a Single Market strategy; guarantees, including multilingual workforce and completion of the maternity and paternity leave (English a requirement) Network and Information Security Directive • Neutrality – civil servants even at senior level are generally unaffected by changes in government 36 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

SPOTLIGHT: CIVIL SERVICE AWARD WINNERS 2018 THE ANNUAL CIVIL SERVICE AWARDS RECOGNISE INSPIRATIONAL INDIVIDUALS AND INNOVATIVE PROJECTS AND ENCOURAGE BEST PRACTICE. SOME OF THE 2018 WINNERS TALK ABOUT THEIR WORK AND WHAT WINNING MEANS TO THEM.

Emily Tofield receives the Communication Award on behalf of the MOJ Prison Officer Recruitment Team

PRISON OFFICER RECRUITMENT TEAM, MINISTRY OF JUSTICE, and innovative technologies. WINNERS OF THE 2018 CIVIL These include ‘gamification’, an SERVICE COMMUNICATION automated sifting tool, which we based self-selection tool, which AWARD applied in January 2019 on our allows candidates to get a better high-volume campaigns. understanding of the role, our The entire Ministry of Justice Work also continues to increase Success Profile has helped us team, from HR to MoJ Digital the diversity of new recruits to to better understand what the to analytical services, as well as support HM Prison & Probation prison officer of the future communications colleagues, were Service’s commitment to ensure looks like. delighted with the award. the workforce is reflective of the working population and that we This award demonstrates what One of the most important attract the right people with the can be achieved when you aspects of winning an award is right skills. have a multi-disciplinary team that it sets up expectations that of ‘brilliant’ civil servants who the team will continue to excel. Focus also remains on supporting used collaboration and open, retention through the offer of honest communication achieve We continue to identify ways to a prison officer apprenticeship a common purpose – while improve aspects of the prison and the implementation of embodying the Ministry of officer recruitment process the new Civil Service Success Justice’s value of ‘Together’. and recruitment performance Profiles [as covered in issue indicators, including the overall 17 of CSQ]. Coupled with the Keith Coni, MoJ Marketing and time-to-hire, and to test new implementation of a new web- Communications Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 37

3. The work continues! RACE DISPARITY UNIT, as prison violence, educational Ethnicity Facts and Figures CABINET OFFICE, WINNERS attainment and home ownership. is a permanent live website, OF THE 2018 CHRIS MARTIN You can see the data at https:// which changes as the data POLICY AWARD www.ethnicity-facts-figures. changes in the real world. service.gov.uk In addition to adding new We were absolutely delighted data, we have significantly that our team in the Race We were the first two members improved the website’s digital Disparity Unit (RDU) was of staff in the unit when it was set capability and have worked awarded the 2018 Civil Service up in September 2016. It has been with departments to deliver Chris Martin Policy Award. a great experience in lots of ways, strong policies across a range but there are three things we of topics, including education The RDU was announced by the particularly enjoy about working and employment. Prime Minister in 2016. The aim in RDU: is to challenge ethnic disparities Our team loves new challenges, – differences of treatment or 1. In government terms, the Race and we have ambitious plans outcome affecting people of Disparity Audit was a genuine for the year ahead. Our forward different ethnic backgrounds – start-up – there were no priorities include working with by shining a light on them with people, structures, precedents, departments to achieve greater government data. offices (or money) when we policy change and impact in started! We were literally the real world, improving the All the data we have published handed a six-page policy experience for users of the can be found on our pioneering paper and asked to make website, and harmonising how website, Ethnicity Facts and it happen. government classifies ethnicity. Figures. The website currently covers more than 160 topics 2. The RDU is a fantastic multi- There’s even a spin-off strand, across public services and disciplinary team, bringing #3OD, to share our learning on national life, on issues as diverse together people from data, improving access to open data digital and policy backgrounds and encourage open dialogue for to build something new. We open democracy. all learn from each other and have gained valuable skills We have had tremendous across these three expert help from many people across areas – and we challenge government and beyond. You each other a fair bit too! So, know who you are and we look although the award was for forward to working with you in policy, it was really an award the next phase! for our whole team. Marcus Bell, Director, and Zamila Bunglawala, Deputy Director, Race Disparity Unit

Marcus Bell (third right) holds the Chris Martin Policy Award, flanked by members of the Race Disparity Unit and presenter Chris Wormald, Permanent Secretary, Department of Health & Social Care (second left) 38 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

Charlotte Dring (right) with award presenter Sue Owen, Permanent Secretary, Department for Digital, Culture, Media & Sport

CHARLOTTE DRING, WINNER OF THE 2018 CIVIL SERVICE DIVERSITY AND INCLUSION AWARD

I remember the moment I found out I had made it into the Civil Service. I was sitting in the car with my mum and sister when I decided, for the 20th time that There are many achievements day, to check my Fast Stream over these past six years that account for any updates. When I’m proud of, but definitely up Through this network we created I saw the message saying I’d there is work with other brilliant a space for people to share passed the assessment centre I civil servants to champion social their experiences, increased didn’t dare believe it was real. I mobility and get it firmly on understanding of what social tentatively shared the news with the agenda. mobility is and why it matters, my mum, saying I needed to and supported around 10 check, double check, maybe even When I first joined the Civil departmental networks to grow triple check for sure. Service, I felt I didn’t fit in in the first year alone. Today there because of my background. Six are nearer 30 networks across Fast-forward six years and I did a years on and I couldn’t feel more the Civil Service and its agencies. similar reality check as I stepped different. Through championing on stage to collect the 2018 Civil social mobility across the Civil On a personal level, speaking Service Diversity and Inclusion Service, and talking about why at events such as International Award – I had a quick pause and it’s important, I have met so many Women’s Day and Senior Civil looked up at the screen to make great people, including those Service basecamp really boosted sure it was definitely my name up I worked with to establish the my confidence. I now have no there and that I hadn’t got a little Cross-Government Social Mobility doubt that I fit in, and that, really, carried away! Network. I probably always did. Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 39

I am very much indebted to Sharing experiences and learning the person who nominated me is so important, and this award for the Civil Service Award, has shone a spotlight on social the judging panels and, most mobility and why it matters. That, importantly, those I worked with for me, is the greatest part of it all. along the way to achieve all we did together. Charlotte Dring, Ministry of Housing, Communities & Local Winning the award has only Government strengthened my determination waardrdsds to do more, and I have since AwardsAwA spent time talking with people looking to set up new social mobility networks both inside and outside the Civil Service. 40 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

IN CONVERSATION WITH… MARK CARNEY, GOVERNOR OF THE BANK OF ENGLAND

Whatever form and path Brexit takes, the Bank will take all the necessary steps to achieve its objectives as the UK leaves the EU

© Bloomberg Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 41

WHAT ATTRACTED YOU A good question is also how I TO THE ROLE OF THE ended up as a central banker GOVERNOR OF THE BANK in the first place. It was not OF ENGLAND? my original plan. I studied economics and initially worked When I was first approached, as an investment banker, moving I was attracted by the scale of jobs every 18 to 24 months the challenges of sustaining the across three continents. I found nascent UK recovery, helping to the issues I most enjoyed were The report sets out six reform the UK financial system where the public and private scenarios, illustrating what could and modernising the Bank sectors intersected. So, when happen – not necessarily what is of England. the opportunity at the Bank of most likely to happen – under a Canada came up I jumped at it. range of key assumptions. These During my time as the Governor scenarios are calculated for the of the Bank of Canada, I I have been privileged to learn policy-relevant timelines for the always looked at the Bank of from remarkable people, and it’s Bank – up to five years. As such, England with admiration. Over through these partnerships and they are not assessments of its 324 years, it has constantly by following what interested me the relative long-term merits of demonstrated both intellectual most that I ended up being in different trading relationships. leadership and dedication to the right place at the right time, public service. For centuries, first at the Bank of Canada and The six scenarios range from it has been at the centre of now at the Bank of England. a smooth transition to an the global financial system. arrangement in which the The quality of the organisation YOU RECENTLY RELEASED A UK retains a ‘close economic has always been evident in REPORT ON THE POTENTIAL partnership’ with the EU international fora, and being IMPLICATIONS OF EU (including comprehensive at the heart of the world’s WITHDRAWAL ON MONETARY arrangements for free trade pre-eminent financial centre AND FINANCIAL STABILITY. in goods and some trade in means there is no match WHAT ARE THE MAIN business and financial services) for the importance of the MESSAGES IN THAT REPORT? to a disorderly no-deal, no- issues the Bank tackles, and transition scenario. The latter the intellectual and practical The report was our response is underpinned by worst-case policy challenges it faces. It to a request from the House of assumptions, including that was an unrivalled opportunity Commons Treasury Committee the UK loses the existing trade to refresh and modernise the for the Bank of England to arrangements it currently has organisation to get the most out publish analysis of how Brexit with non-EU countries through of it, building on those historical will affect the Bank’s ability membership of the EU, that and extensive strengths.My to deliver its objectives for the UK’s border infrastructure experience here has exceeded monetary and financial stability. does not cope smoothly with all of my initial expectations. new customs requirements for some time, and that there is a pronounced increase in the return investors demand for holding sterling assets.

The implications of Brexit for the appropriate path of monetary policy will depend on the balance of their effects on demand, supply and the exchange rate. The Monetary Policy Committee [MPC] judges that the monetary policy response to EU withdrawal, whatever form EU withdrawal takes, will not be automatic and could be in either direction. 42 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

Although the nature of EU The Financial Policy Committee THE BANK OF ENGLAND HAS withdrawal is not known at [FPC] judges that the UK BEEN PREPARING FOR A NO- present, and its impact on the banking system is strong DEAL BREXIT SINCE 2016, DO balance of demand, supply and enough to serve UK households YOU THINK THAT THE WORK the exchange rate cannot be and businesses even in a DONE BY THE BANK SINCE determined in advance, under disorderly Brexit, and that the THEN WILL HELP PROTECT all circumstances the MPC will major UK banks have ample FINANCIAL STABILITY? respond to any material change liquidity to withstand a major in the outlook to bring inflation market disruption. The FPC has The job of the Financial Policy sustainably back to the 2% worked with other authorities to Committee [FPC] is to protect target while supporting jobs ensure most risks of disruption financial stability. Since the and activity. to cross-border financial referendum we have been doing services have been addressed. everything we can to ensure Securing an implementation the financial system is ready for period will minimise the near- Whatever form and path Brexit Brexit, whatever form it takes. term financial stability and takes, the Bank will take all the November’s Financial Stability economic risks of a disruptive necessary steps to achieve its Report detailed the FPC’s work withdrawal from the EU outlined objectives as the UK leaves since the referendum, which falls above by providing time for the EU. into four areas: authorities, infrastructure providers, financial and non- However, monetary and financial • The committee has stress- financial businesses time to stability are necessary but not tested banks to the most address cliff-edge risks. sufficient conditions for long- severe scenarios in the report, term prosperity. The economic and judged that even in these The Bank of England – alongside consequences of Brexit over worst-case outcomes banks other domestic authorities and the longer term will depend would be able to continue financial companies themselves on the nature of the UK’s lending. Today, UK banks – has put extensive contingency future trading relationships, hold three and a half times plans in place to support other government policies, the more capital than they did institutional resilience and readiness of each sector for before the global financial market functioning in the Brexit, as well as the reaction crisis, and even a shock as event that the UK leaves of households, businesses and large as that would leave the the EU without an financial markets, and ultimately major UK banks’ aggregate implementation period. the ingenuity and enterprise of CET1 capital ratio at twice the British people. its pre-crisis level. Globally, the resilience of the financial system has increased too: for the world’s largest banks, the requirements and buffers for common equity – the most loss-absorbing form of capital – are now ten times higher than the pre-crisis standard. Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 43

• Banks also have ample liquidity to withstand a major market disruption and could survive many months without any need to access wholesale funding or foreign exchange markets. They hold more than £1 trillion of high-quality liquid assets, which is more than four times more than before the crisis, and can access an additional £300 billion of liquidity through the Bank of England’s regular facilities. The Bank can lend in all major currencies, if required.

• Since 2017 the FPC has published its assessment of the risks of disruption to financial services provided across the UK-EU border and a checklist of actions required to reduce those risks. We have been working through these actions with ONE OF THE HM Treasury, the Financial RECOMMENDATIONS IN SIR Conduct Authority [FCA] and MICHAEL BARBER’S PUBLIC our counterparts in Europe to VALUE REVIEW WAS THE reduce these risks. CREATION OF A ‘PUBLIC VALUE FRAMEWORK’ TO • The FPC is committed to the HOW DOES THE BANK WORK MEASURE THE LIKELIHOOD implementation of robust WITH OTHER AREAS OF THE THAT PUBLIC SPENDING prudential standards in the GOVERNMENT ON BREXIT? WAS DRIVING UP IMPROVED UK, and in this context has OUTCOMES IN PEOPLE’S considered how it would We work most closely with LIVES. HOW DOES THE maintain its ability to manage colleagues at HMT and the FCA, BANK OF ENGLAND ENSURE UK financial stability risks as is usual for issues relevant IT DELIVERS VALUE FOR under a range of possible to financial stability. This is MONEY? future relationships with the formalised by their membership EU in financial services. The of the FPC, but filters down We have held our headcount UK is home to the world’s to working level as well, and nominal budget flat for two leading international financial where we have regular years, and managed that while centre, and with assets information exchange. meeting major new demands around ten times UK GDP, arising from the decision to the scale of activity in the UK Our work on Brexit has also leave the EU. The Bank receives financial system is unmatched benefited from conversations no direct taxpayer funding or in other jurisdictions. with other government grants from government. This confers a special departments. responsibility on the Bank At the heart of the Bank’s to ensure that the system Brexit is unique, and one of current strategic plan, Vision is robust to a wide range of the key uncertainties is the 2020, is an initiative to ‘do potential domestic and extent of short-term disruption what matters most’. This means global shocks. as the UK withdraws from the prioritising work within our flat deep and complex trading nominal budget constraint that relationship it currently has makes the biggest contribution with the EU. In addition to the to the Bank’s mission, and so survey conducted by the Bank’s maximises value for money agents, we had conversations while containing costs. with various experts to improve our understanding of possible Every year the Bank’s governors causes of disruption and decide its strategic goals, which mitigation across sectors. are the key changes we need to make today to deliver our core functions more effectively

© Simon Dawson, Bloomberg 44 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

that in relation to other central BAME background. banks the Bank already employs a smaller proportion of its staff Our 2017 graduate intake in central services than came from 35 different UK the median. universities, and from a wide range of degree disciplines – © Bloomberg More broadly, achieving only around half of our new value for money requires a graduate entrants have studied culture where local areas and economics. Of those newly hired individuals are empowered to the graduate programme in the future. These feed into to both take and challenge in 2017, 44% were female, 22% local priorities, and since 2017 decisions. This is supported by BAME and 53% were from lower this process has been overseen our Vision 2020, which includes socio-economic backgrounds. by a Director of Priorities and initiatives around more effective This direction of travel is Resources and a network of decision-making, unlocking encouraging, but we do not local prioritisation managers. potential and enabling stronger yet consider it job-done, and All areas have three-year collaboration. will continue to set ambitious business plans, which are goals as well as strengthen our renewed annually and reviewed WHAT ARE THE GREATEST external accountability. for smaller changes on a CHALLENGES IN MAKING quarterly basis. THE BANK A MORE DIVERSE We value diversity for at least AND INCLUSIVE PLACE, AND three reasons. First, a public Ultimately, this means we need WHAT ARE YOU DOING TO institution needs to reflect to be streamlined and efficient. TACKLE THEM? the public it serves. Second, Our Cost Containment Group diversity helps build the trust promotes cost-containment Promoting diversity and we need to deliver our remits. initiatives and facilitates inclusion has been a top Third, it is well established that temporary re-allocations of strategic priority for the diversity leads to more creative budget and headcount. And Bank’s executive team and thinking and reduces the risks of we have recently refreshed Court of Directors since I groupthink and bias. our policies on procurement, became Governor. travel and expenses. Our The Bank defines diversity as delivery of value for money The strategy is working and both ‘who we are’ (identity is regularly assessed by the we have made considerable diversity) and ‘how we think’ National Audit Office [NAO], progress. We now have (cognitive diversity). And and the most recent NAO 31% female and 5% BAME we have stressed that, while report acknowledges the representation at senior levels, diversity is a reality, inclusion Bank’s ongoing efforts and compared to 17% and 2% five is a choice. Inclusiveness forward agenda to transform its years ago. Of our 622 new hires unlocks the true value of an provision of central services. The last year, 43% were women organisation’s diversity: through NAO recognised, for example, and over 25% came from a inclusion, people can realise Issue 19 – February 2019 | CIVIL SERVICE QUARTERLY 45

We are on the cusp of a fourth industrial revolution, with the potential to transform their full potential. So our fundamentally the commitment is not only about meeting targets. We are also nature of work and focusing on building a culture that values diverse ideas, commerce encourages open debate, and empowers people at all levels to take the initiative.

The challenge is evident in the history of the Bank. Our first female court member, Frances Heaton, was only appointed We launched our inclusion in 1993, while our first BAME strategy in 2017. We anonymise member, Lord Morris, followed all CVs, strive for balanced five years later. And I am the shortlists and interview panels, 120th in a very long line of male and have run pooled recruitment LOOKING FORWARD, WHAT governors of the Bank. Ten years for the last three rounds of OPPORTUNITIES DO YOU SEE ago our graduate intake was senior appointments. We have IN THE UK ECONOMY AND IN drawn from just 11 universities, launched a Career Returners FINANCIAL SERVICES? and there continues to be programme to attract and limited diversity in both US and support professionals returning We are on the cusp of a fourth UK economics departments. to the workforce. And we have industrial revolution, with launched a variety of mentoring the potential to transform Our strategy to tackle these schemes to help individuals fundamentally the nature of challenges is therefore achieve their goals, learn from both work and commerce necessarily focused on both others, build relationships and through advances in artificial building a pipeline for a increase their confidence. intelligence [AI], automation, diverse set of future senior interconnectedness and appointments, as well as To broaden the diversity of our machine learning. The economy broadening the diversity of our talent pool, we now recruit from is reorganising into a series talent pool for school leavers more UK universities – recent of distributed peer-to-peer and graduates. graduates have come from 40 connections across powerful different universities, up four networks – revolutionising We are taking a wide range times as many as a decade how people consume, work of measures. ago – from a wide range of and communicate. degree disciplines, and in 2016 As part of our 2014 Strategic we launched a Central Banking The financial implications of Plan we set ourselves stretching Qualification to train employees these developments are only targets: 35% female colleagues from non-economics or beginning to be realised, but in senior roles by 2020, 13% technical backgrounds. We have they are likely to be immense. BAME colleagues in senior roles launched an education outreach As regulators, we have a by 2022, 50% female and 20% programme, ‘econoME’, which responsibility to set a policy BAME representation below includes free classroom agenda that allows innovation senior management level by materials and we are committed in finance to flourish and 2020. And we have explicitly to visiting 200 schools a year. financial stability to prevail. And linked values – Collaborative, We also run structured work a financial system built for the Inclusive, Empowering, Decisive experience programmes for fourth industrial revolution will and Open – to performance young people from lower socio- help to support and smooth the management and employees’ economic backgrounds, and an transition in the wider economy. rewards. Our executive directors African-Caribbean Scholarship have specific performance Programme to support students The use of AI in finance has the objectives linked to diversity, from Black or Mixed African or potential to improve customer and all managers take inclusive Caribbean backgrounds through choice, services and pricing, leadership training. their undergraduate degrees. reduce transaction costs, 46 CIVIL SERVICE QUARTERLY | Issue 19 – February 2019

improve diversity in the system the Bank are supporting the careers are usually those who and increase access to credit private sector by encouraging have continued to pursue their for households and businesses. disclosure of climate-related interests, stayed true to their Recognising this, banks have risks and opportunities through values, and given back to invested $10 billion in AI since the G20 Task Force for Climate- their communities. 2010, and that is expected related Disclosure. to quadruple by 2020. The The next generation will go financial sector is the largest The list does not end there. through their careers in a world customer of AI. The Bank’s Future of Finance of tectonic shifts, including project is exploring what the unprecedented globalisation For its part, the Bank is financial system of tomorrow of trade, capital and ideas, as upgrading our RTGS [real- well as the beginning of the time gross settlement] Fourth Industrial Revolution. system – the backbone of The good news is that amidst every payment in the UK – this uncertainty lie great to take advantage of these opportunities for the next new technologies. The new generation to build the new RTGS will be able to interact The good news is economic and social engines of with distributed ledger that amidst this our shared prosperity. technology, can be accessed uncertainty lie great by non-bank payment To navigate these opportunities, service providers, and will opportunities for the I recommend ‘the 3 Ps’, which capture richer data on every next generation to build have served me well: purpose, payment. This will not only partnerships, perspective. lower the cost and increase the new economic and the speed of payments, social engines of our Define your ‘purpose’ and stick but has the potential to be to it obsessively. Remember that transformative beyond the prosperity true purpose, including that of financial sector. The more business, must be grounded in seamless payments are – the objectives of clients, society including cross-border – the and humanity. As economist more UK households and John Kay has observed, “Profit businesses will benefit from is no more the purpose of the new global economy. might look like, and what business than breathing is the And richer, standardised data that means for our priorities purpose of living.” will support greater choice and now and in the future. The competition in financing for project is digging further into In a world of division, corporate end-users, particularly a range of issues, including ‘partnerships’ will bring small and medium businesses the implications of an ageing breakthroughs. Select your [SMEs]. population, big datasets, teams wisely and recognise the integration of emerging that while diversity is a reality, These new technologies could markets into the global financial inclusion is a choice. Take it. also promote inclusive growth system, the transition to a by supporting free, efficient low-carbon economy, and all And maintain ‘perspective’. and sustainable movement of of the opportunities financial While you should always capital between jurisdictions technologies could provide to marshal your facts, you must which will, in turn, support UK households and businesses. also engage people’s intuitions trade, investment and jobs. and win their trust. Do this These benefits would multiply WHAT ADVICE WOULD through empathy and be open if delivered alongside services YOU GIVE TO AMBITIOUS to dialogue. Remember Henry trade liberalisation, which CIVIL SERVANTS ASPIRING Ford’s advice that, “The secret has the potential to increase TO ACCELERATE BOTH of success is to see things from productivity growth, reduce THEIR PERSONAL another person’s point of view.” excess imbalances, and make AND PROFESSIONAL free trade work for all, DEVELOPMENT? Finally, it is important to including SMEs. remember the role that chance Experience has taught me that plays in all of our lives and the Finally, challenges can also the road ahead will not be responsibility that comes with create opportunities. Mobilising straight, and it is unrealistic to good fortune. cross-border private sector map out the decades ahead. investment is the only solution As John Lennon said: “Life is to financing global development what happens to you while needs and protecting the global you’re busy making other commons from threats such as plans.” But I have found that climate change. The G20 and those most pleased with their

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