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IFG - Calls for constraints on PM’s power to restructure Whitehall

Prime ministers should have to show that changes to the civil service’s departmental structures serve the public interest rather than narrow party-political or personnel management goals, according to a new report from independent think tank the Institute for Government (IfG).

The report, Reshaping Government, argues that rushed departmental changes often leave little legacy beyond enormous disruption and a large bill for the taxpayer. Although reforms can work well when built around clear business needs – it cites as an example the 2001 creation of the Department of Work and Pensions – they are often carried out too fast and for the wrong reasons.

To ensure that these expensive and time-consuming organisational reforms produce more effective government, the IfG argues, the PM should be required to produce a supporting business case and a clear estimate of costs before implementing changes, and a specialist unit should assist with changes. There should also be an opportunity for select committees to scrutinise the proposals, and Parliament should be given a vote on substantial restructures.

Meanwhile, the government should explore and develop other to improve collaboration across departments without structural change – for example, by reforming spending review processes; reinvigorating cross-Whitehall performance management; using cross-departmental goals, budgets and teams; deploying specialist skills on a more cross-departmental basis; and building up capacity around the prime minister.

Tom Gash, the IfG’s Director of Research, said:

“When money is tight, there can be no justification for ill-thought-through restructuring that costs millions and helps no one. The next government must seek genuine reform of Whitehall – and that doesn’t mean chopping and changing departments. It means dealing with Whitehall’s inability to focus on long-term priorities and its weakness in co-ordinating policy across departments.”

Ian Watmore, the former Permanent Secretary of the Department for Innovation, Universities and Skills – founded in 2007, and merged with another department just two years later – commented:

“‘Machinery of government’ changes should only be considered when the end result is truly strategic; when the business case is compelling in the long term; and when the short- to medium-term dips in performance and increases in cost are properly understood. If all three of these are not in place then I would say: No, think about it hard; and then say No again. I strongly welcome the recommendations of the IfG report today.”

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