Next phase of austerity will be tougher, Kerslake warns

26 Sep 14
Sir Bob Kerslake, the outgoing head of civil service, has warned that the next government will face a more difficult task in cutting the deficit from 2015 as many easier savings have already been made by the coalition.

By Richard Johnstone | 26 September 2014

Sir Bob Kerslake, the outgoing head of civil service, has warned that the next government will face a more difficult task in cutting the deficit from 2015 as many easier savings have already been made by the coalition.

Sir Bob Kerslake

Kerslake, who left his post earlier this month, said that austerity was one of the major drivers of the changes being introduced by the Civil Service Reform Plan. This is intended to improve commissioning, contracting and digital skills in government

‘Put simply, the world is changing rapidly and we need to change with it,’ Kerslake said in his valedictory remarks at an event at the Institute for Government think-tank.

‘If we want to stay relevant and respected we have to understand these changes and their implications for us.’

The need for austerity would likely continue for the length of the next parliament to 2020.

‘The first five years have been challenging but the second five years are likely to prove even harder for three reasons,’ he stated.

‘Firstly, the easier savings have already been made. Secondly, we are likely to be doing it against a background of a growing economy and greater competition for good staff.

‘Thirdly, the sense of urgency that underpinned the first savings programme will be reduced. In reality, the task is not yet complete. But this will be hard to explain to those in the public sector, including our own staff, who are looking for some relief.’

However, he added the civil service had ‘excelled’ in the face of the austerity challenge, managing to implement a big programme of savings at the same time as undergoing cuts itself.

‘Achieving this has not just tested our resilience but our leadership, delivery, contracting and technical skills.’

The other factors leading to a need for change in the civil service were a requirement to focus government on economic growth and to retain public trust

‘There are still big economic challenges in a global economy that remains pretty uncertain,’ he said.

‘This is of course a big issue for the “economic” departments in government. But every department has a role in creating a pro-growth environment. It requires a complete change of mindset on everything from regulation to procurement to investment decisions.’

Although the civil service was ‘in a good place’ on public trust, Kerslake warned it still needed to be more responsive when the government was seeking to persuade people of the need for radical change
‘The civil service is not and never was broken,’ he said.

‘But if it wants to stay relevant and be the best it can be, it must continue to reform.’

A Two Year On update to the reform plan, to be published soon, would point to ‘accelerated progress and real change happening on the ground’.

Key areas where progress has been include improvements in skills, functional leadership, accountability and the digitisation of public services.

However, Kerslake said his ‘to do list’ of unfinished business included deciding the future organisational model of the civil service amid the forthcoming cuts.

Improvements are also needed to Whitehall’s ability to deal with cross-cutting issues so that initiatives such as the Troubled Families Programme and the local growth deals can be built on with further devolution.

‘There is still a working assumption that Whitehall knows best,’ he stated.
‘I am not starry eyed that everything done locally is done well. There have been serious failures there as well. But the sucking up of power crowds out the space for ministers and civil servants to focus on the things that only they can do.’


Spacer

CIPFA logo

PF Jobsite logo

Did you enjoy this article?

AddToAny

Top