New Arrangements for the Roles of the Head of the Civil Service and the Cabinet Secretary
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House of Commons Public Administration Select Committee Leadership of change: new arrangements for the roles of the Head of the Civil Service and the Cabinet Secretary Nineteenth Report of Session 2010-12 Report and Appendix, together with formal minutes and oral and written evidence Ordered by the House of Commons to be printed 17 January 2012 HC 1582 Published on 20 January 2012 by authority of the House of Commons London: The Stationery Office Limited £17.50 The Public Administration Select Committee (PASC) The Public Administration Select Committee is appointed by the House of Commons to examine the reports of the Parliamentary Commissioner for Administration and the Health Service Commissioner for England, which are laid before this House, and matters in connection therewith, and to consider matters relating to the quality and standards of administration provided by civil service departments, and other matters relating to the civil service. Current membership Mr Bernard Jenkin MP (Conservative, Harwich and North Essex) (Chair) Alun Cairns MP (Conservative, Vale of Glamorgan) Michael Dugher MP (Labour, Barnsley East) Charlie Elphicke MP (Conservative, Dover) Paul Flynn MP (Labour, Newport West) Robert Halfon MP (Conservative, Harlow) David Heyes MP (Labour, Ashton under Lyne) Kelvin Hopkins MP (Labour, Luton North) Greg Mulholland MP (Liberal Democrat, Leeds North West) Priti Patel MP (Conservative, Witham) Lindsay Roy MP (Labour, Glenrothes) The following member was also a member of the Committee during the inquiry: Nick de Bois MP (Conservative, Enfield North) Powers The powers of the Committee are set out in House of Commons Standing Orders, principally in SO No 146. These are available on the Internet via www.parliament.uk Publications The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including press notices) are on the Internet at http://www.parliament.uk/pasc. Committee staff The current staff of the Committee are Martyn Atkins (Clerk), Charlotte Pochin (Second Clerk), Alexandra Meakin (Committee Specialist), Paul Simpkin (Senior Committee Assistant) and Su Panchanathan (Committee Assistant). Contacts All correspondence should be addressed to the Clerk of the Public Administration Select Committee, Committee Office, First Floor, 7 Millbank, House of Commons, London SW1P 3JA. The telephone number for general enquiries is 020 7219 5730; the Committee’s email address is [email protected]. Leadership of change: new arrangements for the roles of the Head of the Civil Service and the Cabinet Secretary 1 Contents Report Page Summary 3 1 Introduction 5 2 The combined role of Cabinet Secretary and Head of the Civil Service 7 The role of Parliament in changes to Civil Service structures 9 3 Implications for the Head of the Civil Service and for the Civil Service 10 The proposed arrangements 12 Access to the Prime Minister 15 4 Time commitment of the Head of the Civil Service 18 A full-time Head of the Civil Service? 22 5 Leadership at the top of the Civil Service 26 Lines of accountability for Permanent Secretaries 26 Effect on Civil Service reform 30 Staffing and offices for the new Head of the Civil Service. 33 The role of Permanent Secretary of the Cabinet Office 34 6 Conclusion 36 Conclusions and recommendations 38 Appendix 1: Letter from Sir Bob Kerslake to Mr Bernard Jenkin MP, Chair of PASC 43 Formal Minutes 45 Witnesses 46 List of printed written evidence 46 List of Reports from the Committee during the current Parliament 47 Leadership of change: new arrangements for the roles of the Head of the Civil Service and the Cabinet Secretary 3 Summary The Civil Service faces a period of radical change as it strives to meet the Government’s objectives to devolve power out to communities and citizens, and to reduce costs. We have identified leadership as one of the key principles for achieving this transformation within Whitehall, and the retirement of Sir Gus (now Lord) O'Donnell as Cabinet Secretary and Head of the Civil Service has made timely a consideration of how the Civil Service should be managed. Whilst this report is mainly concerned with the Civil Service, we recognise that changes in the governance of the Civil Service can have implications for the much wider role of the Cabinet Secretary, who is concerned with the totality of government. This we shall monitor and return to, if necessary, in due course. We have sought to consider what form the leadership at the top of the Civil Service should take to implement a change programme across Whitehall, to break down departmental silos and overcome bureaucratic inertia. Our work on Civil Service reform has shown that the size of this task should not be underestimated. The Government proposed dividing Sir Gus O'Donnell’s role into three separate posts: Head of the Civil Service, Cabinet Secretary and Permanent Secretary of the Cabinet Office. Sir Bob Kerslake, Sir Jeremy Heywood and Ian Watmore have been appointed to these posts respectively. Sir Bob will have direct responsibility for Civil Service reform, with Mr Watmore reporting to him. We are concerned that this could lead to weaker leadership and disperse power at a critical time of change in government. The Civil Service needs to have clear and effective leadership and a strong reforming head to make the necessary changes. We are disturbed that all four surviving former Cabinet Secretaries have expressed deep reservations. We therefore believe it would be right for the Government to monitor these changes and review their effectiveness in due course. Sir Bob Kerslake has been given the responsibility of leading the Government’s reform programme in Whitehall. To achieve this, the Head of the Civil Service must have the seniority and access to the Prime Minister to fulfil the essential role of speaking truth unto power. As one of the checks and balances on executive power, the Civil Service, through its head figure, must have parity of status with the Cabinet Secretary. We have recommended that the Head of the Civil Service regularly meet the Prime Minister and Deputy Prime Minister, and should as a matter of course attend Cabinet, and be placed at the Cabinet table on an equal footing with the Cabinet Secretary. We hope that Sir Bob Kerslake’s appointment will be a success and that the new structure will be made to work effectively. However the risk of unequal status with the Cabinet Secretary, and limited access to the Prime Minister remain a concern. While the evidence 4 Leadership of change: new arrangements for the roles of the Head of the Civil Service and the Cabinet Secretary from Sir Bob Kerslake was persuasive on these points, we will monitor closely how this post works in practice, and we recommend a full review of the new structure by July 2012. We are also not convinced that the role of Head of the Civil Service can be combined with that of a permanent secretary in a major government department. The demands on Sir Bob Kerslake by the Head of the Civil Service role are extensive. In practice there is a strong case for a full-time Head of the Civil Service. We found that the Head of the Civil Service role has grown substantially since the posts of Cabinet Secretary and Head of the Civil Service were combined in the early 1980s. While the post has always been held as a part- time role, in conjunction with another senior Civil Service post, the transformational change required and the challenges facing the Civil Service are of such magnitude that it is necessary to consider whether what has served in the past is suitable for the future. We have recommended that the July 2012 review we propose should also assess whether a full-time Head of the Civil Service is required, and whether it would be appropriate to combine the roles of Permanent Secretary of the Cabinet Office and Head of the Civil Service in one post. This would place responsibility for Civil Service reform solely with one individual in the stronger centre of government which we consider is needed to drive Civil Service reform. Leadership of change: new arrangements for the roles of the Head of the Civil Service and the Cabinet Secretary 5 1 Introduction 1. The Civil Service is one of the United Kingdom’s great institutions. It is not merely the administrative function of government: it is one of the vital checks and balances in the UK’s largely unwritten constitution. Its impartiality and objectivity are supposed to be its hallmark. Senior civil servants are responsible for advising Ministers on appropriate procedures and legal and ethical practices. They must be independent enough to speak truth to power. No two roles are more important in this respect than those of the Cabinet Secretary and the Head of the Civil Service, roles which have in recent years been vested in one person. 2. The retirement of the Head of the Civil Service and Cabinet Secretary, Sir Gus (now Lord) O’Donnell, was announced on 11 October 2011.1 On the same date, significant changes to the staffing at the top of the Civil Service were announced. Whilst this paper deals mainly with those changes we recognise that they could impact on the wider role of the Cabinet Secretary, who is concerned with the totality of government. This we shall monitor and review in due course. 3. Sir Gus retired on 31 December and has been succeeded as Cabinet Secretary, but not as Head of the Civil Service, by Sir Jeremy Heywood, formerly Permanent Secretary at 10 Downing Street.2 Sir Bob Kerslake has been appointed Head of the Civil Service, a post he will hold in conjunction with his current post, that of Permanent Secretary at the Department for Communities and Local Government.