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The Civil Service Reforms of the 1980S The Civil Service Reforms of the 1980s edited by Dr Michael Kandiah & Professor Rodney Lowe CCBH Oral History Programme 2 The Civil Service Reforms of the 1980s © Centre for Contemporary British History, 2007. Not to be reproduced without permission. The Civil Service Reforms of the 1980s CCBH Oral History Programme Programme Director: Dr Michael D. Kandiah © Centre for Contemporary British History, 2007 Cartoon on title page from Campaign Report 9, 11 June 1981, The Council of Civil Service Unions All rights reserved. This material is made available for use for personal research and study. We give per- mission for the entire files to be downloaded to your computer for such personal use only. For reproduction or further distribution of all or part of the file (except as constitutes fair dealing), permission must be sought from CCBH. Published by Centre for Contemporary British History Institute of Historical Research School of Advanced Study University of London Malet St London WC1E 7HU ISBN: 1-905165-30-7 ISBN-13: 978-1-905165-30-8 The Civil Service Reforms of the 1980s Edited by Dr Michael Kandiah and Professor Rodney Lowe Seminar held 17 November 2006 at Churchill College, Cambridge This witness seminar was organised by the Centre for Contemporary British History, the Cabinet Office Histories, Openness and Records Unit and Churchill College Cambridge. It forms part of the official history of the Civil Service being written by Professor Rodney Lowe Centre for Contemporary British History 6 The Civil Service Reforms of the 1980s © Centre for Contemporary British History, 2007. Not to be reproduced without permission. Contents Contributors 9 Citation Guidance 12 Chronology 13 Session I: The 1981 Civil Service Strike Background Notes 17 Seminar Transcript 20 Session II: The demise of the Civil Service Department and the resignation of Sir Ian Bancroft as Head of the Civil Service, November 1981 Background Notes 55 Seminar Transcript 59 Session III: The Genesis and Initial Implementation of Next Steps Background Notes 97 Seminar Transcript 102 Comment by Sir Peter Kemp 143 8 The Civil Service Reforms of the 1980s © Centre for Contemporary British History, 2007. Not to be reproduced without permission. Contributors Editor: MICHAEL D. KANDIAH Director of the Oral History Programme, Centre for Contemporary British History Background notes: PROFESSOR Official Historian of the Civil Service since the Fulton Report RODNEY LOWE Witness details are given for their positions at the time of the events under discussion or other relevant position. Session I The 1981 Civil Service Strike Chair: BRIAN GILMORE, CB Principal, Civil Service College Witnesses: The Rt Hon LORD Cabinet Secretary, 1979-87. ARMSTRONG OF ILMINSTER, GCB, CVO LESLIE CHRISTIE Assistant General Secretary of the Society of Civil and Public Servants LORD CHRISTOPHER CBE General Secretary, Inland Revenue Staff Federation, 1976-89 MIKE FOGDEN Chairman, First Division Association, 1980-3 SIR ALISTAIR GRAHAM, Kt Deputy General Secretary, Civil and Public Service Association, 1982-6 SIR JOHN HERBECQ, KCB Second Permanent Secretary, Civil Service Department, 1975-81 SIR JOHN HOSKYNS, Kt Head, No 10 Policy Unit, 1979-81 The Rt Hon LORD WILSON Deputy Secretary, Cabinet Office, later Cabinet Secretary and OF DINTON, GCB Head of the Civil Service, 1998-2002 10 The Civil Service Reforms of the 1980s Session II The demise of the Civil Service Department and the resig- nation of Sir Ian Bancroft as Head of the Civil Service November 1981 Chair: DR WILLIAM PLOWDEN Director-General, Royal Institute of Public Administration Witnesses: The Rt Hon LORD Cabinet Secretary, 1979-87, Joint Head of the Civil Service ARMSTRONG OF OF ILMINSTER, GCB, CVO The Rt Hon SIR JOHN Principal Private Secretary to Home Secretary, 1978–80; Assist- CHILCOT, GCB, PC ant Under-Secretary of State, Director of Personnel and Finance, Prison Department, 1980–4; Under-Secretary, Cabinet Office (MPO), 1984–6 JEREMY COLMAN Private Secretary to successive heads of the Home Civil Service, 1980–2 SIR JOHN HERBECQ, KCB Second Permanent Secretary, CSD SIR JOHN HOSKYNS, Kt Head, No 10 Policy Unit CLIVE PRIESTLEY, CB Chief of Staff to Derek Rayner, Efficiency Unit, PMO, 1979-83 SIR ADAM RIDLEY, Kt Special Adviser, Treasury, 1979-84 The Rt Hon LORD Minister for Housing, 1987-8, later Head of the Office of Public WALDEGRAVE OF Service and Science, 1992-4 NORTH HILL, PC SIR CLIVE WHITMORE Principal Private Secretary to the Prime Minister, 1979-82 GCB, CVO Session III The Genesis and Initial Implementation of Next Steps Chair: PETER RIDDELL Political Editor, The Times Witnesses: The Rt Hon LORD Cabinet Secretary and Head of the Civil Service, to 31 Dec 1987 ARMSTRONG OF ILMINSTER, GCB, CVO IAN BEESLEY Deputy Head, Unit supporting Lord Rayner (Prime Minister’s Adviser on Efficiency), 1981-3; Under Secretary and Official Head of the Prime Minister’s Efficiency Unit, 1983-6 © Centre for Contemporary British History, 2007. Not to be reproduced without permission. The Civil Service Reforms of the 1980s 11 PROFESSOR PETER Queen Mary, University of London HENNESSY SIR ROBIN IBBS, KBE, Kt Prime Minister’s Adviser on Efficiency and Effectiveness KATHARINE M. JENKINS Head of the Efficiency Unit and joint author of Next Steps SIR PETER KEMP, KCB Second Permanent Secretary and Next Steps Project Manager, OMCS, 1988-92 SIR ROBIN Deputy Secretary, Department of Trade and Industry, 1984-92 MOUNTFIELD, KCB SIR AUGUSTINE (GUS) Cabinet Secretary, 2005- O’DONNELL The Rt Hon LORD Labour Party member of the Treasury and Civil Service Select RADICE, PC Committee, 1987-96 The Rt Hon LORD Minister for Housing, 1987-8, later Head of the Office of Public WALDEGRAVE OF Service and Science, 1992-4 NORTH HILL, PC The Rt Hon LORD WILSON Deputy Secretary, Cabinet Office, later Cabinet Secretary and OF DINTON, GCB Head of the Civil Service, 1998-2002 © Centre for Contemporary British History, 2007. Not to be reproduced without permission. Citation Guidance References to this and other witness seminars should take the following form: Witness name, in ‘Witness Seminar Title’, seminar held [date of seminar], (Centre for Contem- porary British History, [date of publication], [full internet address of seminar]), page number of reference [use the number given in the header at the top of the page referenced]. For example, Lord Armstrong of Ilminster’s comments on civil service morale should be foot- noted as follows: Lord Armstrong of Ilminster, in ‘The Civil Service Reforms of the 1980s: The 1981 Civil Serv- ice Strike’, seminar held 17 November 2006, Centre for Contemporary British History, 2007, http://www.icbh.ac.uk/icbh/witness/civilservicereforms, p.42. For Harvard reference style, use (CCBH Witness Seminar, date of publication) in the text, and the following style in the bibliography: ‘Witness Seminar Title’, held [date of seminar], Centre for Contemporary British History, [date of publication], [full internet address of seminar]. For fuller guidance on the citation of all types of electronic sources, please refer to the H-Net Guide at: http://www2.h-net.msu.edu/about/citation/general.html Chronology 1934 First government agency established, the Unemployment Assistance Board 1935 Feb Ministers suspend UAB benefit scales due to demonstrations and Parliamen- tary pressure 1955 Priestley Commission – pay comparability introduced 1961 Plowden Report: first highlights the importance of management at the centre and ‘down the line’ 1962 First pay pause – public sector only 1968 Fulton Report: attack on the ‘cult of the amateur’ Civil Service Department created 1969 Jan Staging of pay awards In Place of Strife published CPSA becomes first union to adopt a strike policy 1970-4 Creation of departmental agencies under Heath Government: Executive responsibilities ‘hived off ’ to agencies e.g. CAA (1971) as well as creation of departmental agencies e.g. Defence Procurement Agency (1971) and PSA (1972). Labour government continues trend towards hiving-off e.g. MSC (1974) which assumed responsibility for Training and Employment Services Agencies 1971 CPSA establishes a fighting fund 1972 Union refusal to process pension award Industrial Relations Act 1973 Feb One day strike (CPSA, SCS, C&E) 1974 Development by CSD/Treasury of financial information system 1976 Pay Research suspended (until 1978) 1977 Jan Creation of Bureau of the Budget out of Treasury narrowly defeated Jul English Committee recommends closure of CSD 1979 Lord Rayner heads Efficiency Unit, situated in No 10 ‘Lasting reforms’ programme seeks improved management through changes in administrative culture and constitutional framework Feb One day strike Apr Settlement (9 per cent + staging) May Election of Mrs Thatcher and the Conservatives Creation of the Efficiency Unit Nov MINIS introduced in DoE 14 The Civil Service Reforms of the 1980st 1980 May 1 Cabinet approves 630,000 manpower target (from 708,000) Council of Civil Service Unions formed Inflation at 22 per cent May 6 Rayner’s ‘lasting reforms’ agreed and MINIS circulated to Cabinet Permanent Secretaries’ less than successful dinner with the Prime Minister July ‘Big 4’ recommend abolition of CSD and Mrs Thatcher conditionally agrees Oct 27 Government unilaterally abandons pay comparability Oct Annual Rayner scrutiny programme endorsed by Cabinet ‘Operation backtrack’ Hawtin-Moore Report rejects CSD-Treasury merger Nov Mrs Thatcher rejects merger Dec Treasury Select Committee (Du Cann) rejects merger Mrs Thatcher considers creation of a Prime Minister’s
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