Whitehall in private sector shake-up plan
Up to 75,000 jobs at stake in coalition plans to move civil servants into 'John Lewis economy'
By James Ashton
Thousands of civil servants will be transferred into the private sector under a blueprint to shake up Whitehall that will be unveiled next month.
Plans to identify central government operations that can be spun out and commercialised could affect one in six civil servants, or 75,000 staff.
It is the next step in the Government's vision to foster a "John Lewis economy" of employee-owned businesses and reduce the bloated public sector. Chancellor George Osborne is expected to talk up the progress made in Whitehall reforms in his Budget on Wednesday.
New recommendations on spin-outs are due next month in a report by Stephen Kelly, the former chief executive of software provider Micro Focus. It is expected to say that there are numerous government operations that could be potentially commercialised, either through forging partnerships with outside firms or seeking capital injections.
The coalition is a fan of mutuals, claiming they are more productive than other companies, more resilient in a downturn and suffer from lower levels of absenteeism. Ministers want to lift their contribution to the UK economy from the current 2 per cent. With that in mind, Deputy Prime Minister Nick Clegg last week announced a review that could lead to tax breaks for employee-owned companies.
My Civil Service Pension (MyCSP), a Whitehall division that handles the retirement funds of 1.5 million civil servants, was selected last year as the first operation to be moved into the private sector. Ministers plan to sell a stake to a commercial partner but also hand shares to staff.
Francis Maude, the Cabinet Office minister, has led the charge to reduce central government costs, including a clampdown on the use of management consultants. But, the National Audit Office warned last week that even though Whitehall had slashed its annual wage bill by £400m by axing 17,800 staff, there was a risk staffing levels would have to be bolstered again unless working practices changed.
The Cabinet Office has recruited Ed Welsh from investment bank Rothschild to lead the work on using new business models such as mutuals.
"Introducing new models for delivering public services will increase the quality and value of services, and unlock growth, saving money for the taxpayer," Mr Maude said.
- 1 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 2 How to turn off/stop 'seen by' on Facebook: Disable it to make your chats seem less passive aggressive
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
- 5 Buckingham Palace guard who attacked passers-by in 'most most violent piece of CCTV footage' police officer had seen walks free
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
Rupert Murdoch berated Sun journalists for not doing enough to attack Ed Miliband and stop him winning the general election
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...