Break up the Treasury, give ministers more say in hiring mandarins and bring in a head of the Civil Service from the private sector to make government work more smoothly, review says

The Treasury could be stripped of some of some of its powers and ministers handed greater control over the hiring of mandarins under plans for a major overhaul of Whitehall

Former minister Lord Maude is said to have recommended that the Treasury’s role in setting budgets for government departments be hived off to a new ‘budget ministry’, while retaining tax responsibilities.

In a wide-ranging package of reforms he has also suggested the current top job in the Civil Service – Cabinet Secretary – be abolished and split into two roles.

One would be a permanent secretary within Government in No10, while the other would run the Civil Service, and go ideally to someone from the private sector.

Lord Maude, who first mooted similar reforms when he was a Cabinet office minister more than a decade ago, was reported by the Times to have said ministers should have more control over appointing senior mandarins.

But he also suggested ministers but should themselves face more scrutiny of their performance from colleagues and subordinates.

No10 declined to comment on leaks today when asked about the proposals, though Lord Maude spoke about his proposals at the Tory Party Conference earlier this month, where he said the current structure was ‘archaic’ and needed to learn from systems in the US and France.

Former minister Lord Maude is said to have recommended that the Treasury’s role in setting budgets for government departments be hived off to a new ‘budget ministry’, while retaining tax responsibilities.

‘The cabinet secretary is not the same as a powerful change manager,’ he told a fringe event attended by the Guardian. 

‘A dedicated head of civil service needs to be properly empowered.’ 

The Times reported that the report has been submitted to Cabinet Office minister Jeremy Quin but is facing ‘institutional resistance from Whitehall.

In April this year Lord  Maude called for a ‘much more robust culture’ in Whitehall in the wake of Dominic Raab’s resignation as Deputy Prime Minister over bullying.

He claimed ‘there will be more cases’ like Mr Raab’s when ‘frustrations boil over’ without a shake-up of the civil service.

In an article for the Observer, he wrote: ‘We need a much more robust culture, with less groupthink, more rugged disagreement, and the confidence to both offer challenge and to accept it.

‘That includes accepting candid feedback. Today there is no external accountability for the quality of advice, other than to ministers.

‘There could be value in regular external audits, conducted by qualified outsiders, with published results. This would reward officials who get it right, and provide a stimulus to the rest.’