17 June 2005
Prime Minister Tony Blair this week confirmed Sir Gus O'Donnell as the new Cabinet secretary, ending speculation that the job would be offered to a surprise candidate.
The Cabinet Office confirmed on June 15 that O'Donnell, currently permanent secretary at the Treasury, would succeed the retiring Sir Andrew Turnbull as head of the civil service in August.
Whitehall sources told Public Finance that Blair delayed the decision to appoint O'Donnell while he considered alternatives, including permanent secretaries Sir Nigel Crisp at the Department of Health and Sir David Normington at the Department for Education and Skills.
O'Donnell enjoys a strong relationship with Chancellor Gordon Brown – who pushed for his appointment – and is widely respected across the high-grade civil service.
Blair said O'Donnell possessed a 'distinguished record' of achievement within government, having 'driven through real change and shown strong leadership at the Treasury'.
O'Donnell will oversee a period of radical reform across Whitehall, fronting the government's plan to cut the civil service by 84,000 posts and develop a more efficient use of resources. One source said he was a 'strong advocate' of the government's plan to make wider use of the private and voluntary sectors to deliver public services.
The Institute for Public Policy Research said O'Donnell's appointment provided a 'golden opportunity' to reform the civil service.
Guy Lodge, a research fellow at the IPPR, said: 'The new Cabinet secretary must champion and accelerate the pace of reform in Whitehall, making it his key priority.'
PFjun2005
