My right honourable friend the Lord Chancellor and Secretary of State for Justice has made the following Written Ministerial Statement.

The Lord Chief Justice and I are today issuing the following joint Statement.

We have been exploring the most appropriate arrangements for the future operation of HMCS following the creation of the Ministry of Justice.  Following an open and constructive consideration of a number of possible models, we have agreed the main principles of a partnership between the Lord Chancellor and Lord Chief Justice in relation to the governance, financing and operation of HMCS. We hope that the steps necessary to launch a new model for HMCS, based on these principles, will be complete early in the new financial year.

The courts are by their nature a shared endeavour between the judiciary, which is responsible for the judicial function to deliver justice independently, and the Government, who have overall responsibility for the justice system within the framework and resources set by Parliament. Within this overall structure the Lord Chancellor and the Lord Chief Justice have specific, but different, roles. These were described in part in the concordat finalised in January 2004 between our predecessors as Lord Chancellor and Lord Chief Justice.

Our recent discussions have built upon this work. 

The new arrangements for HMCS will structurally embed the spirit and principle of partnership that already exists. The detailed structure of the partnership and its governance will be set out in a framework document for HMCS, which will be laid before both Houses when it is finalised, together with the consequential amendments to the concordat.

While we shall not be intervening in the day-to-day operational decision-making of HMCS, we will jointly agree:

the aims and objectives for HMCS; and

the priorities for, and division of, funding within HMCS.

The main principles of this new and unique partnership (which will take the form of an agency) are that:

the leadership and broad direction of HMCS will be in the hands of a new board of 11 members which will hold HMCS (the chief executive and the executive team) to account for the delivery of the jointly agreed aims and objectives.  It will be chaired by an independent non-executive who will be neither a judge nor a civil servant and who will have a key role to facilitate the working of the partnership;

the other members of the board will be three judicial representatives, a representative of the Ministry of Justice, two non-executive directors and four executive directors (the chief executive of HMCS, its finance director and two others);

the chief executive will have day-to-day responsibility for the running of HMCS.  He will be the HMCS accounting officer, via the Permanent Secretary. The chief executive will work under the general direction set by the board and will be held by it to account for the delivery of the efficient and effective operation of the courts in accordance with the framework document, the budget and plans we shall have agreed;

a joint duty for all HMCS staff to the Lord Chancellor and the Lord Chief Justice for the effective and efficient operation of the courts; the staff will continue to be line-managed within HMCS;

an open and transparent means of settling the budget for HMCS which includes greater judicial engagement in the resourcing of the courts through the HMCS board. The process will include:

the HMCS board having responsibilities for considering and approving HMCS resource bids and for developing the budget and plans for the operation of the courts; and

greater clarity in the role of the Lord Chief Justice when representing the views of the judiciary on the provision and allocation of resources, which will enable him to communicate the views of the judiciary to the Chancellor of the Exchequer, as well as the Lord Chancellor, when the Government are settling spending review negotiations. 

a clearer relationship between HMCS and the judiciary, reflecting the new partnership model, operating not only at the centre but also at regional, area, and local level;

a joint examination of how we can improve performance and efficiency across all aspects of the operation of the courts, including the contribution the judiciary may properly make to that while respecting its independence as a body and in respect of individual decisions;

specific provision will be made in the framework document for arrangements in relation to the court estate, IT, HR and policy issues.

We will be working out the detail of these new arrangements over the coming weeks, which will be reflected in the recruitment of the appointments necessary to launch the new partnership.