Last week I attended a meeting of the industry forum, a progressive think tank that discusses crucial business and economic issues often addressed by Labour politicians and MPs under Chatham House rules. This one was different for two reasons. It was “on the record” and it was addressed by a former Tory minister, Francis Maude, one of the founders of Policy Exchange, a Conservative think tank and traditionally to the right of the party.
But before anyone on the left start to think this is another example of Sir Keir Starmer’s lurch to the right, this was an unusual and useful meeting of minds.
Lord Maude has recently conducted a thorough and detailed independent review of the governance and accountability of the civil service for the government – not the most sexiest of subjects. But its important findings have been spurned by the present Tory government.
To my mind there is a lot to be learned from this review for both Labour, the Liberal Democrats and the Green Party. It is quite clear from the latest interviews with Labour’s shadow chancellor, Rachel Reeves, that she believes that if Labour win the next election it is going very difficult for them to spend more cash on the day to day running of public services. Labour needs to make sure it doesn’t waste a penny of taxpayer’s money and Lord Maude’s proposed reforms could help them achieve this.
What Lord Maude frankly exposes is that Whitehall is directionless. Yes there are theoretical controls – the PM is technically responsible for running the civil service. But there is no system of delegating this power to either civil servants or ministers.
Centre of Whitehall is unwieldly
The result in his words: ” The centre is now unwieldy, with confusion about where responsibilities lie and a lack of clear lines of accountability. Other jurisdictions with similar systems provide signposts to improved arrangements.”
Why this is important is that it means there is a lack of overall control on how large areas of government spending are made and how effective the policies implemented by governments are in practice. One only has to read my articles in Byline Times to see legions of exposures by the National Audit Office of waste, inefficiency and bad decision making which could have saved the taxpayer billions.
Lord Maude’s proposals include merging the Cabinet and the Prime Minster’s office into one powerful body – so a future PM will have much greater control over the direction of the government – and a new Office of Budget and Management to bring together cross Whitehall projects which tend to fall into a void because of Whitehall’s silo mentality.
The head of the civil service should also be a full time job so he or she can concentrate on bringing about all these reforms and so should the First Civil Service Commissioner who should be in charge of a wider programme and be able to hold the head of the civil service to account and make an annual report to Parliament.
Every minister should get a letter telling him or her clearly what their powers are and what they should expect from civil servants.
Not a lot of this is radical stuff. Australia, Canada, Ireland and New Zealand already have similar systems because they are more modern democracies than the UK.
Labour are about to start talking to the civil service under the usual courtesy given to opposition parties before a general election. This would be an ideal situation to raise this. I would also suggest that the Shadow Cabinet should have a session with Gareth Davies, the head of the National Audit Office, to draw on the independent body’s wealth of experience of what went wrong in the past and how they could avoid such pitfalls in the future. Voters will depend on Labour getting it right.
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