1. What progress he has made in implementing the civil service reform plan. (126832)

In June, we published a plan with specific actions to tackle long-standing weaknesses in the civil service, to build on strengths and to address frustrations expressed by civil servants themselves. If effectively implemented, the actions will lead to real change, which is urgently needed. The pace of change now needs to increase. Yesterday, we published the digital strategy, which sets outs how we can save money while improving the delivery of public services. That is an example of civil servants enthusiastically embracing and driving radical reform.

Over the past decade, public sector productivity remained static while private sector productivity improved by a third. What steps is my right hon. Friend taking to ensure that the civil service learns best practice from business?

After the coalition Government formed, we put in place the efficiency and reform group, which is driving a much more business-like approach to those areas of activity that run across government: the procurement of common goods and services; property; the management and oversight of major projects; and information and communications technology infrastructure, which was wholly unco-ordinated. All this is driving savings in the cost of government, but we need to do much more. The key to that is developing much more interchange between the private sector and the civil service, which the head of the civil service is committed to driving forward energetically.

Will the Minister confirm that “reform” is not just code for privatisation, outsourcing and politicising the senior civil service? Will the civil service be retained as a neutral service to government, with proper ministerial responsibility?

There is no plan to change the basic rules of accountability, in the sense that there is a permanent, politically impartial civil service. However, there is a view, which I believe is shared right across the House, particularly by those who were Ministers in the previous Government, that responsiveness and effectiveness need to increase. That view is shared by the leadership of the civil service. One thing we are trying to do, through the civil service reform plan, is to respond to some of the frustrations expressed by civil servants themselves. They get very frustrated with the bureaucracy and the hierarchical nature of the service, as it is currently run.

13. I congratulate my right hon. Friend on his bold and imaginative reforms of the civil service, particularly the mutualisation of the civil service pension scheme. May I press him to look at other areas of the civil service where that successful approach may be adopted? (126846)

The movement towards mutualisation of public services is very powerful and is being looked at by other Governments, as well as our own. It is powerful because it enables entrepreneurial leaders in the public sector, of whom there are many, to take control of the services, innovate, do things differently and drive out cost. It is a powerful means of driving efficiency, for the taxpayer and for the user.

Today’s Institute for Government report reveals what it calls “fragile leadership” of the civil service reform programme. It is clear that the chaotic and expensive redundancy programme and the culture of blaming the service for blunders while Ministers get away scot-free is damaging morale. Even the right hon. Gentleman’s friends in the TaxPayers Alliance acknowledge that he is engaging in the costly practice of laying off staff while paying to recruit replacements. For all his bluster about savings, the Cabinet Office now has more staff than it had last year. When will he get a grip?

Coming from the Parliamentary Private Secretary to the previous Prime Minister, who presided over a massive explosion in the size of the state and the growth of inefficiency—who presided over the decade in which public sector productivity was flat while private sector productivity grew by 30%—that is pretty rich. The hon. Gentleman refers to the expensive voluntary redundancy programme that has taken place. Under the position that his Government left—until we reformed the redundancy scheme—it would have been impossible to pursue that at all. The civil service today is considerably smaller. There are plans in Departments to reduce the size further, but productivity is already improving considerably. I just wish it had started under the previous Government.