Wednesday, October 04, 2023

Time to push the "cut Civil Servants" button again, it seems...

I am a civil servant. Yes, I admit it, albeit perhaps not what some might expect. I serve the Government, whether or not I agree with its policies, because that is my function. I will deliver my designated role with as much enthusiasm and skill as I possess, as my job is to ensure compliance with the law of the land as far as is possible. I even argued in my younger days that, if Government wants to reduce the number of civil servants, it's not for us to argue - it's for the Government to justify what will probably happen next, i.e. a collapse of service quality or compliance function.

And, after many, many years doing so, I am quite cynical about what elected politicians say as opposed to what they actually do when push comes to shove.

So, if it is to be the case that the Government intends to save money by freezing the size of the Civil Service, you might not be surprised if I greet the announcement with a slightly jaundiced gaze. Not because I oppose the idea that we need to deliver public services more efficiently - we do, and should. The problem is, in the nicest possible way, politicians and their enthusiasm for new laws - to be seen to be doing something.

Passing legislation, any legislation, tends to require someone to implement it, or enforce it, or support the public or businesses to understand it. That someone is almost certainly going to be a public servant, i.e. someone like me. You can contract it out, but private sector organisations have to compete in the free market for qualified staff, something the public sector increasingly doesn't bother to do. That costs and, once you've built in a profit margin (and private companies are seldom altruistic enough to want to provide a service at a loss), you may find it to be more expensive, especially if demand is not quite what you expected. A public servant can be reassigned to other work, whereby a contracted-out service will expect to be paid on the basis of the contract, not necessarily actual demand.

And, if a contracted-out service fails, or the contractor decides to walk away, Government is the provider of last resort.

Compliance is important too. Passing laws and then not seeking to ensure compliance tends to mean that bad actors won't, tilting the playing field against those who do comply. In areas of tax, as opposed to spend, you might actually want to increase the number of staff tasked with addressing attacks on the system, which can run to billions of pounds in lost revenue. 

But there is an easy way to cut civil service numbers. Digitise services so that most people deal with the issues using computers or smartphones rather than through talking to people. And, most radically, stop passing new laws and use the existing ones more effectively, even simplifying legislation where possible. Now, some things that matter might slip through the net, things that politicians think are important, but that might be a price worth paying. And the public might not appreciate having to deal with a Chatbot or guidance written by technicians for technicians.

Alternatively, you could look at public servants as part of the cost of managing an efficient economy. So, employing a few more civil servants to process asylum claims as a quicker rate would almost certainly reduce the number of asylum seekers requiring accommodation by the State, and bring about a modest reduction in overall expenditure, for example.

Freezing civil servant numbers is a blunt tool, albeit an easy to understand one. And there is no harm in asking departments to consider whether they can do what they do with less people or, if they do cut posts, indicate what won't or can't be done. For, if a minister pulls a lever of power, expecting something to happen, they might be unpleasantly surprised to find that there's nobody at the other end to carry out their wishes.

So, if it's a headline they're after, the Government have probably got one. They'll have unsettled most of the Government Departments in the process, something which tends not to aid productivity, but then most people will remember the headline rather than the results...

2 comments:

Frank Little said...

There is another backlog which can be cleared by redeploying "surplus" civil servants. The rip-off merchants who took advantage of their contacts with the Johnson ministry during the Covid-19 emergency have not been pursued for recovery of taxpayer money, mainly because of the understaffing of HMRC. Who knows? The extra staff may even pay for themselves.

Mark Valladares said...

Frank, good to hear from you, and trust that you’re well.

I tend to the view that compliance work has tangible effects in terms of tackling fraud and, less common, error, but also intangible effects in terms of deterring potential wrongdoers. Danny Alexander agreed with that idea a decade ago, and it would be nice to see another Government endorse this.