The Tory right declares war on Whitehall

A new report argues that the civil service is blocking radical public service reform.

When storm clouds are gathering over the world economy - when the BBC can run a survey of experts under the headline "has Western capitalism failed?" - it is expecting a lot for people to pay much heed to a parliamentary select committee report on civil service reform.

Nonetheless, this particular intervention by the public administration select committee is worth noticing, even if just in a short break between cold sweats about the imminent financial apocalypse.

The gist of the report is that the coalition's plans to reform public services are running up against a civil service culture of inertia and that they risk being smothered to death by bureaucracy. At the top of the list of ideas whose implementation is jeopardised, according to committee chair, Conservative MP Bernard Jenkin, is "the big society" - the prime minister's pet project. If there weren't so many scarier things going on this would surely have turned into a load of "MPs say Big Society won't work (again)" headlines.

Jenkin is on the right of the party and, from what I have seen, likes to think of himself as a provocateur but not a trouble-maker; an independent character but not an awkward-squaddie. This report is surely being packaged up and presented as a cache of ammunition to assist those inside Downing Street who argue that the government needs to press ahead much more boldly with the break-up of what they see as failed public sector monopolies. That faction sees Whitehall mandarins as the praetorian guard of outmoded statism.

Back in February, David Cameron was marching to that drum, promising to bring private or voluntary sector competition to every aspect of what the state does, sparing only the military and courts. But the anti-state maximalists (whose high priest is chief Cameron advisor Steve Hilton) were held back by an informal alliance of Lib Dems and sceptical Tory tacticians. They feared that a fanfare of noisy public sector radicalism would raise voter alarm, feed into an opposition narrative of slash-and-burn privatising fanaticism and generally cause more trouble than it would be worth. The whole NHS debacle seriously killed the mood for big public sector changes - not least by putting George Osborne, the most powerful figure in government after the PM, off the idea.

This division inside government produced, after much wrangling and delay, the white paper on Open Public Services. (It was launched in the middle of the phone-hacking furore in July, so no-one noticed.) The white paper promises lots of consultation and consideration of radical reforms, but few cast iron commitments. The whole process of getting even that far exhausted ministers. One very senior member of the cabinet described it to me as "the biggest coalition arm-wrestle" behind the scenes so far. Then there were riots, Libya to think about ... the whole thing just went off the boil.

But the Thatcherite purist end of the Conservative party hasn't forgotten and my guess is that this report is being framed as a way to get things boiling again. Jenkin has a piece plugging the report on ConservativeHome today. He also made a speech launching the report, which ended thus: "We are proposing a special inquiry into the role and functions of the Head of the Civil Service. What does that title mean? What should it mean? So watch this space!"

In the staid language of select committees that is a quiet declaration of war on Whitehall.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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Can Philip Hammond save the Conservatives from public anger at their DUP deal?

The Chancellor has the wriggle room to get close to the DUP's spending increase – but emotion matters more than facts in politics.

The magic money tree exists, and it is growing in Northern Ireland. That’s the attack line that Labour will throw at Theresa May in the wake of her £1bn deal with the DUP to keep her party in office.

It’s worth noting that while £1bn is a big deal in terms of Northern Ireland’s budget – just a touch under £10bn in 2016/17 – as far as the total expenditure of the British government goes, it’s peanuts.

The British government spent £778bn last year – we’re talking about spending an amount of money in Northern Ireland over the course of two years that the NHS loses in pen theft over the course of one in England. To match the increase in relative terms, you’d be looking at a £35bn increase in spending.

But, of course, political arguments are about gut instinct rather than actual numbers. The perception that the streets of Antrim are being paved by gold while the public realm in England, Scotland and Wales falls into disrepair is a real danger to the Conservatives.

But the good news for them is that last year Philip Hammond tweaked his targets to give himself greater headroom in case of a Brexit shock. Now the Tories have experienced a shock of a different kind – a Corbyn shock. That shock was partly due to the Labour leader’s good campaign and May’s bad campaign, but it was also powered by anger at cuts to schools and anger among NHS workers at Jeremy Hunt’s stewardship of the NHS. Conservative MPs have already made it clear to May that the party must not go to the country again while defending cuts to school spending.

Hammond can get to slightly under that £35bn and still stick to his targets. That will mean that the DUP still get to rave about their higher-than-average increase, while avoiding another election in which cuts to schools are front-and-centre. But whether that deprives Labour of their “cuts for you, but not for them” attack line is another question entirely. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.

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