Labour should take up the mantle of radical civil service reform

Ed Miliband must help shape a cross-party agreement on the civil service that turns it into a tool to support social democratic governance in the future.

Civil service reform has traditionally been the business of well-appointed London seminar rooms: the kind of backroom issue that seems vitally important to ministers and mandarins, but has no resonance on the doorstep. The sheer lack of public interest means that the great departments of state have gone without serious reform for at least a quarter of a century and have consequently decayed until they can no longer bear the strain of modern government.

This situation may finally be about to change. Steve Hilton’s comments about the failings of the Whitehall machine, reported this weekend, seem to have catalysed the beginnings of a cross-party consensus for reform. Tony Blair has already joined the off-the-record voices of coalition secretaries of state in calling for serious change.

The coalition has undergone a Damascene conversion: in opposition, key figures tended to assume that the only problem with Whitehall was its mismanagement by Labour. The Tories are radically reducing the size of the civil service, but beyond this they have only offered micro-reform. Francis Maude once justified the creation of a weak Downing Street by reference to his own experience as a junior minister in the 1980s, a time when the gentlemen who ran departments were untroubled by overbearing Blairite management consultancy.

Given this background, it would be easy for Ed Miliband to take an oppositionalist stance and accuse the coalition of seeking to debauch the supposedly great traditions of Whitehall. His own experience as climate change secretary should tell him that this is a mistake. But if he needs any further convincing he should consult some of his fellow former Labour ministers, who tend to exhibit a mixture of exasperation and bitterness when talking about their former officials.

Labour’s goal should instead be to shape a cross-party agreement on the civil service that turns it into a tool to support social democratic governance in the future.

There are two problems that need to be addressed. The first is that the civil service lacks serious accountability. The current structures of Whitehall means permanent secretaries are accountable to their secretaries of state, who are in turn accountable to parliament. But in practice the demands of political neutrality mean that ministers cannot sack or discipline officials.

There are ways around this problem – at least one Labour secretary of state disliked their perm sec so much they refused to allow them into ministerial meetings for months on end. But this is a poor substitute for a properly organised system of clear performance goals and proper accountability for meeting them. Labour should therefore support a greater say for ministers in official appointments and performance reviews, and perhaps even the framing and publishing of performance agreements with permanent secretaries.

Any deal on civil service reform must also address the question of political advisers. The coalition has come to deeply regret its self-denying pledge to reduce the number of spads. The sheer complexity of modern government means that ministers need more advisers to help them master their briefs – think of  Hilton’s foot high pile of papers, representing a couple of days of civil service paperwork. Just as importantly, only a handful of senior officials can ever have significant exposure to their secretary of state, leaving many policy makers to frame their proposals by reading Michael Gove’s newspaper articles. Good political advisers are not the vampiric spin doctors of tabloid fable, but policy specialists who provide a link between ministers and their officials. There should be a lot more of them.

Addressing the accountability issue would ensure that ministers are able to push their policies through the Whitehall machine more effectively, but it is only half the challenge. To actually make change happen on the ground, you have to find a way to engage with NHS trusts, local authorities and schools. The second issue Labour must address is the absurdly siloed nature of Whitehall, where effective policy making too often comes second to maintaining the integrity of departmental baronies.

Most big policy issues cross departmental lines – helping a child out of poverty requires local authorities to work with the NHS, police and schools. But at the moment the fragmentation of Whitehall policy making makes coordination far too difficult, leading to poor outcomes and rampant inefficiency. For instance, a recent study from the Local Government Association showed that better integration of skills, social care and families policy could save more than £20bn over five years.

The solution is to reform Whitehall structures. One of the most persistent myths of British government is the idea that it has an overweening central triumvirate of departments – No 10, the Cabinet Office and the Treasury. The truth is that the PM can, if they wish to, wield a large amount of personal power, but the administrative support they receive from Downing Street and the Cabinet Office is unusually weak in international comparison.

So Labour should support a radical strengthening of the Cabinet Office to turn it into a Department of Strategy and Capability, which would be charged with civil service reform, coordinating policy in line with the government’s programme and ruthlessly managing a small number of cross-cutting goals. There could even be virtual ministries housed at the centre, which would commission policy advice from across departments and go beyond into the worlds of think tanks and academia. In a world where there will not be much money available, Labour should focus on five or six big challenges, rather than engaging in the sometimes undisciplined splurging of the Blair years.

Labour has a proud tradition of civil service reform. The Fulton inquiry of the 1960s was arguably the last radical attempt to shake-up the upper policy making echelons of the mandarinate. It is time for Miliband to take up the reformist mantle once again, and help forge a badly-needed consensus on how to modernise our once-great institutions of state.

David Cameron's former director of strategy Steve Hilton complained that "the bureaucracy masters the politicians". Photograph: Getty Images.

Simon Parker is director of the New Local Government Network

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Find the EU renegotiation demands dull? Me too – but they are important

It's an old trick: smother anything in enough jargon and you can avoid being held accountable for it.

I don’t know about you, but I found the details of Britain’s European Union renegotiation demands quite hard to read. Literally. My eye kept gliding past them, in an endless quest for something more interesting in the paragraph ahead. It was as if the word “subsidiarity” had been smeared in grease. I haven’t felt tedium quite like this since I read The Lord of the Rings and found I slid straight past anything written in italics, reasoning that it was probably another interminable Elvish poem. (“The wind was in his flowing hair/The foam about him shone;/Afar they saw him strong and fair/Go riding like a swan.”)

Anyone who writes about politics encounters this; I call it Subclause Syndrome. Smother anything in enough jargon, whirr enough footnotes into the air, and you have a very effective shield for protecting yourself from accountability – better even than gutting the Freedom of Information laws, although the government seems quite keen on that, too. No wonder so much of our political conversation ends up being about personality: if we can’t hope to master all the technicalities, the next best thing is to trust the person to whom we have delegated that job.

Anyway, after 15 cups of coffee, three ice-bucket challenges and a bottle of poppers I borrowed from a Tory MP, I finally made it through. I didn’t feel much more enlightened, though, because there were notable omissions – no mention, thankfully, of rolling back employment protections – and elsewhere there was a touching faith in the power of adding “language” to official documents.

One thing did stand out, however. For months, we have been told that it is a terrible problem that migrants from Europe are sending child benefit to their families back home. In future, the amount that can be claimed will start at zero and it will reach full whack only after four years of working in Britain. Even better, to reduce the alleged “pull factor” of our generous in-work benefits regime, the child benefit rate will be paid on a ratio calculated according to average wages in the home country.

What a waste of time. At the moment, only £30m in child benefit is sent out of the country each year: quite a large sum if you’re doing a whip round for a retirement gift for a colleague, but basically a rounding error in the Department for Work and Pensions budget.

Only 20,000 workers, and 34,000 children, are involved. And yet, apparently, this makes it worth introducing 28 different rates of child benefit to be administered by the DWP. We are given to understand that Iain Duncan Smith thinks this is barmy – and this is a man optimistic enough about his department’s computer systems to predict in 2013 that 4.46 million people would be claiming Universal Credit by now*.

David Cameron’s renegotiation package was comprised exclusively of what Doctor Who fans call handwavium – a magic substance with no obvious physical attributes, which nonetheless helpfully advances the plot. In this case, the renegotiation covers up the fact that the Prime Minister always wanted to argue to stay in Europe, but needed a handy fig leaf to do so.

Brace yourself for a sentence you might not read again in the New Statesman, but this makes me feel sorry for Chris Grayling. He and other Outers in the cabinet have to wait at least two weeks for Cameron to get the demands signed off; all the while, Cameron can subtly make the case for staying in Europe, while they are bound to keep quiet because of collective responsibility.

When that stricture lifts, the high-ranking Eurosceptics will at last be free to make the case they have been sitting on for years. I have three strong beliefs about what will happen next. First, that everyone confidently predicting a paralysing civil war in the Tory ranks is doing so more in hope than expectation. Some on the left feel that if Labour is going to be divided over Trident, it is only fair that the Tories be split down the middle, too. They forget that power, and patronage, are strong solvents: there has already been much muttering about low-level blackmail from the high command, with MPs warned about the dire influence of disloyalty on their career prospects.

Second, the Europe campaign will feature large doses of both sides solemnly advising the other that they need to make “a positive case”. This will be roundly ignored. The Remain team will run a fear campaign based on job losses, access to the single market and “losing our seat at the table”; Leave will run a fear campaign based on the steady advance of whatever collective noun for migrants sounds just the right side of racist. (Current favourite: “hordes”.)

Third, the number of Britons making a decision based on a complete understanding of the renegotiation, and the future terms of our membership, will be vanishingly small. It is simply impossible to read about subsidiarity for more than an hour without lapsing into a coma.

Yet, funnily enough, this isn’t necessarily a bad thing. Just as the absurd complexity of policy frees us to talk instead about character, so the onset of Subclause Syndrome in the EU debate will allow us to ask ourselves a more profound, defining question: what kind of country do we want Britain to be? Polling suggests that very few of us see ourselves as “European” rather than Scottish, or British, but are we a country that feels open and looks outwards, or one that thinks this is the best it’s going to get, and we need to protect what we have? That’s more vital than any subclause. l

* For those of you keeping score at home, Universal Credit is now allegedly going to be implemented by 2021. Incidentally, George Osborne has recently discovered that it’s a great source of handwavium; tax credit cuts have been postponed because UC will render such huge savings that they aren’t needed.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.

This article first appeared in the 11 February 2016 issue of the New Statesman, The legacy of Europe's worst battle