Next Steps Programme (Hansard, 26 February 1996)

§ Mr. Freeman

The Government today published the sixth Next Steps Review—Cm 3164—which was laid in both Houses. It brings together information on the 109 next steps agencies and the executive organisations of HM Customs and Excise and the Inland Revenue established in Government at the end of 1995. Two out of three civil servants work under next steps arrangements.

The review has been developed from being a report on the next steps project to one that focuses on agency performance. It shows that in different areas and in different ways, many next steps agencies are delivering services to improved standards with increased efficiency and effectiveness.

For the first time, as announced in the second competitiveness White Paper "Competitiveness: Forging Ahead", the review includes results for each agency against its key targets over the last three financial years as well as the performance targets set for 1995–96. This indicates trends and facilitates comparison.

The individual commentaries on each agency include new features, such as whether the agency is involved in a private finance initiative project; its progress in securing investors in people accreditation; comment on external responses to completed prior options reviews; and more consistent coverage of market testing initiatives. The competing for quality returns reveal for the first time results for individual agencies. Between April 1992 and March 1995, agencies reviewed £1.3 billion of activities under the competing for quality programme, half of all the activity reviewed in the civil service. Agencies produced annual savings of £313 million, nearly 60 per cent. of the civil service total savings. This represents an average saving of 24 per cent.

Taken together, the individual entries in the review report on more than 1,400 key performance targets. Of these, the overall proportion met by agencies rose to 83 per cent. in 1994–95. This shows a continuing trend of improvement over the three preceding years when the results were 80 per cent. in 1993–94, 77 per cent. in 1992–93 and 76 per cent. in 1991–92.

Within government, agencies continue to be at the forefront of implementing the principles of the citizens charter. Sixty two charter marks are now held by agencies, 310W HM Customs and Excise and Inland Revenue, reflecting the commitment of agency chief executives and their staff to high standards of customer service.

While improvements in performance and standards of service are being achieved, the data contained in the review also show that there is scope to do more. The Government's policy is to seek continuous improvement; and building on the present level of experience of target setting and monitoring, agencies will be required to demonstrate that they are delivering genuinely challenging levels of performance. Ministers will take an even closer interest in ensuring this is so.

The year ahead will see most remaining candidates established as agencies. By 1997, assuming that currently identified functions are all launched as agencies, I expect around three quarters of civil servants will be working under next steps arrangements. That is a significant achievement and a tribute to the way in which staff at all levels have committed themselves to change and to improved performance. The benefits for taxpayers, customers and staff are set out in the review and are clear to see.