Executive Agencies (Hansard, 23 July 2002)

§ Lord Macdonald of Tradeston

The Government have published the report of the review which was jointly sponsored by the Cabinet Office and the Treasury. Pam Alexander led the review. Copies of the review's report and recommendations have been placed in the Libraries of the House.

The review has far-reaching implications for improving the delivery of central government services. It concludes that the agency model has been a success in improving, and in some cases transforming, services 69WA and functions delivered by central government and has brought customer focus and a performance culture into the Civil Service. However, it finds that agencies have in some cases become detached from Ministers and from departments' increasing focus on strategic aims; controls over processes have reduced effectiveness and responsiveness without providing a shared strategic direction.

The report makes 12 recommendations to achieve and maintain strategic connection and improve service delivery. These include:

departmental leadership which values equally policy and delivery skills and agency management with a clear understanding of ministerial objectives;

simpler governance structures providing strategic direction from departments and external challenge from non-executive directors on management boards;

alignment of departmental and agency key targets and a cycle of reviews to ensure that structures and processes across departments support the achievement of key objectives; and

maximum use of financial and managerial delegations to support responsive, flexible and effective delivery.

The Cabinet Office and Treasury will be working with departments to put the review's recommendations into effect over the coming months as part of the wider drive to improve the effectiveness of public services and place a culture of delivery at the heart of government.