Next Steps (Hansard, 9 December 1993)

§ Mr. Waldegrave

The Government today published the fourth next steps review—Cm 2430. It brings together information on the 92 agencies within government, and the executive organisations of Her Majesty's Customs and Excise and the Inland Revenue which now constitute 60 per cent. of the civil service.

Within central Government, agencies are leaders in delivering the citizens charter commitment to customer service and value for money. The review highlights how the focus on the needs of users has been reinforced and gives examples of what individual agencies have achieved. It reports on the steps taken to enable agencies to deliver improved performance, better value for money and greater openness and accountability by, for example, clarifying the responsibilities of Ministers and chief executives, increased delegation, and sharpening the aims and objectives of agencies; financial arrangements and pay and grading systems which are tailored to the work of individual agencies; and the application of the competing for quality initiative.

The arrangements are therefore now in place to enable agencies to deliver real benefits to customers and the taxpayer and these are becoming increasingly evident. The review reports for Parliament and the public on the targets set for agencies and their performance against them in 1992–93 and lists key targets for 1993–94. In 1992–93 agencies met around 77 per cent. of their key targets. This represents a small improvement over the proportion of targets met last year. In general, targets have been made progressively tougher year on year. However, further progress will have to be made, particularly in the area of efficiency. There is a continuing need for Ministers to ensure that the targets they set are challenging and that they have appropriate arrangements in place for overseeing the performance of their agencies. For both tasks they may need to draw on expert advice.

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The Government's aim is that every public service should be provided in the most appropriate and cost-effective way. All the executive functions of the civil service are therefore being tested against the following criteria: first, whether they need to continue to be performed at all; secondly, whether they need to remain the responsibility of Government; thirdly, whether they should be market tested or contracted out; and, fourthly, whether they should become the responsibility of an agency within Government, itself subject to the Government's competing for quality initiative. The review reports substantial further progress in this work.

Once established, agencies are subject to a systematic periodic review, normally after three years of operation. The review lists the current position on these reviews. The Government want to ensure that, in this process, the widest possible range of views are taken into account. In future, therefore, we have decided that reviews will be publicly announced, including through the next steps review, to enable all those with an interest in the agency and its work to contribute to the discussion of its future organisation and status.