How often do we see headlines telling of “the biggest shake-up in a
generation” inflicted by government on some institution or service ? Well now
the tables are turning: government itself is getting under way with its own long overdue
shake-up. Recall that in 2013 the First Lord of the Treasury was asked by
letter via my MP Who will mend UK Government ? I can now report
developments in the form of a
remarkable and unexpected NAO report about the Centre of Government (Cabinet
and Treasury) telling of tectonic shift under Westminster and Whitehall.
The issues raised with the C&AG (Comptroller & Auditor General
– NAO National Audit Office) were
summarised in the 5th June STAG UPDATE as follows it having been first suggested that the NAO (and PAC) themed investigations into Value for
Money hugely miss the point compared with system effectiveness, financial
literacy and decision alacrity: · The NAO does not seem to have access at
cabinet level. · There is no conventional unified financial
system excepting late coming WGA(Whole Government Accounts – see below) because
the Treasury has not had the knowhow and desire to build one. Parliament
has been slow to 'insist' possibly because of 'fear' of the Chancellor. · This deficiency sets a very poor example
down the line and is behind the non-observance of standard practice in
accounting to the people who have the universal franchise and bear the entire
burden of widespread taxation and the risk consequences of insolvency (cf
Greece). · The poor situation has been further
exposed in the run up to the general election as it became clearer that we are
rightly concerned about the deficit and debt, and spending 'regardless'. ·
That deficit and debt has been compromised
because management focus is confined to the cash flow timing with unrestrained
borrowing (PSBR – Public Sector Borrowing Requirement) as opposed to
the true expenditure deficit and financial dynamics of balance sheet and
budgetary control. ·
This in its turn reveals that there
is no clear and transparent financial scheme for devolvement (and the belief
that the meaningless 'austerity' is an option). This is relevant to all aspects
eg 'northern powerhouses', possible Scottish autonomy, city mayoralties. And
there is 'common parlance' reference to "local people" involvement
which in reality stops at councillors - who do not account to local
people. ·
A separate question was answered, over former
Treasury First Secretary Danny Alexander's signature, concerning
the OBR and its filling a vacuum in the Treasury. It did in effect state that
the 'independence' was to allow for the fact that Ministers could
not be trusted with forecasts. ·
A further separate question to Vince Cable
referring back to earlier correspondence on local funding method and lack of
LEP (Local Enterprise Partnership) accountability was directly but
incorrectly answered before he too fell at the election.
The Centre of government: the
NAO’s update overview of March 2015 is here http://www.nao.org.uk/report/the-centre-of-government-an-update/
Comments are: · I It says“the
centre’s role has evolved in response to austerity”. That is a strange
attribution when austerity, like value for money, is a subjectively felt
condition not a policy. Rather the role is having to evolve under pressure of
the uncontrolled and incorrectly defined deficit in need of the financial
system being built. ·
References
to the limited formal powers of the new Civil service Chief Executive from the
private sector, John Manzoni, are revealing but muted (paragraphs 9-12). One
can’t help wondering if there may be a titanic cultural clash, in the sense of
new wine in an old bottle, between Mr Manzoni and Head of the Civil Service (and
Cabinet Secretary) Sir Jeremy Heywood. There is obviously no hint of this
except possibly in paragraph 12. ·
It is highly
significant too that the recently appointed Treasury Director
General of Spending and accountant Julian Kelly now has the role of Chief
Financial Officer to “move finance in government towards the ‘strategic
business partner’ role it has in the private sector. The “partner” word
will sound strange to those of us from the business and industrial
sector. In fact all the references to CEO Manzoni’s work on
“cross-government” development anticipate private sector objective-led
structures which are naturally hierarchical for direction and reporting with
general and specialist function teams – finance, production, research, marketing,
HR and so on – organizationally integrated. ·
The
headings “Deeper change is needed in the next Parliament” and the
need for “clearer and more effective leadership from the centre” recognise the depth of the problem to be fixed. ·
Presumably
‘Civil Service Reform’ as earlier spoken of by House of Commons Select
Committee as a dire need will now evolve with that of “the Centre” in ways yet
to manifest themselves.
|