ARB Board Meeting DCLG Update - May 2012 Richard Harral Department - PowerPoint PPT Presentation

ARB Board Meeting DCLG Update - May 2012 Richard Harral

Department for Communities and Local Government Eric Pickles Secretary Of State Grant Shapps Gregg Clarke Andrew Stunell Bob Neil Baroness Minister for Parliamentary Parliamentary Hannham Minister for Housing and Under Secretary Under Secretary Parliamentary Decentralisation Local of State of State Under Secretary and Government of State 2

DCLG / ARB accountability Parliament Cabinet (and PM) Secretary of State Sir Bob Kerslake Andrew Stunell OBE MP Parliamentary Under Secretary Permanent secretary of State Head of the Civil Service • Integration • Race equality Defined Accounting Officer for • Building regulations Architects Registration Board • Big Society, housing and regeneration • Architects regulation 3

DCLG Organogram DCLG BOARD Ministers Executive Team Non-Executive Directors Finance & Neighbourhoods Localism Corporate Group Group Services Group 4

Neighbourhood Group Organogram Neighbourhoods Group Climate Change & Building Regulations Welfare Reform Homelessness Sustainable Buildings & Standards Division Division & Support Division Bob Ledsome Programme HOMELESSNESS BRS ECONOMIC GREEN DEAL Management STRATEGY ANALYSIS Preventing EPBD / EPC BUILDING CONTROL Repossessions Analytical Support Development SYSTEM POLICY Strategy Interface on Rough Sleeping Code for Sustainable EPBD Universal Credit issues Homes and Housing and and Local Operations Standards Statutory Homelessness Government/Finance Interface on Budget Strategy & Delivery: Strategy and Measures: including Housing for BRS PROGRAMME Housing Benefit changes Programme Management Older People and Homelessness BUILDINGS Strategy & Delivery: Climate Change Adaptation REGULATIONS Supporting People 5

DCLG – Building Regulation and Standards Division Sponsor team primary responsibilities;  Facilitate communication between Government and Arms Length Bodies.  Build strong and positive relationships  Provide reassurance that governance measures in place and are proportionate to risks involved and statutory function.  Provide advice to Ministers  Appoint non architect members to the Board 6

Four external factors are driving change across the public sector The Coalition’s ambition of a smaller, more enabling State A fundamental shift of power and funding to individuals, local communities and neighbourhoods, and local councils The move to a smaller, more strategic Whitehall The Spending Review and action to tackle the fiscal deficit The changes in DCLG should be seen as part of a wider change across the public sector 7

Given these drivers, the scale of the change DCLG faces is unprecedented DCLG’s resource DEL will be reduced by 33% in real terms by 2014/15 A further £1.6bn is to be devolved to local government – which increases the reduction in DCLG’s resource budget to 51% DCLG’s capital spending will be reduced by 74% The number of ALBs will be reduced by two thirds The Government Office network was closed by the end of March 2011 Overall this may require an estimated 34% saving in the Department’s pay costs which equates to… …a reduction of 40% in the Department’s workforce taking account of the mix of jobs required for the future 8 NOTE: Figures as previously announced. Updates to be made available in due course

Last years priorities & progress Lots of change over last twelve months - Significant restructuring Current focus on being a stronger department. To do this we are focusing on; • Leadership • Influencing • People Development • Getting Basics right • Working more cohesively as One Department/One team 9

Change Across Government

Arms Length Body Reform Programme 1 Within DCLG:  Significant progress in reforming DCLG ALB landscape - The Department has closed or transferred 12 out of 27 bodies so far.  The ALB Reform and Governance team will continue to hold the ring on overall costs and savings – and liaison with the Cabinet Office.  DCLG central resource will continue to engage with and provide support to sponsors teams and ALBs, however, at this point reform of arms length bodies is increasingly less about big structural change and more about internal change management. 11

Arms Length Body Reform Programme 2 Across Government:  Institute for Government and the Public Chairs Forum (with strong support from Cabinet Office) have recently produced a report called "It Takes Two" on this subject. http://www.publicchairsforum.org.uk/images/uploads/it-takes-two.pdf http://www.instituteforgovernment.org.uk/sites/default/files/publications/it_takes_two_final_0.pdf  Recommends that the closeness of the relationship is determined by a risk assessment of a number of factors - strategic alignment, finance and performance management etc . To help sponsors and ALBs work through this, IfG/PCF have produced a supporting framework and diagnostic tool (the Relationship Web) which asks more detailed questions.  Recommended as the basis of triennial review process – will be looking to share development of that process with key partners over time. 12

It Takes Two – high level summary 1 Report recommendations include;  Importance of robust, clear and proportionate framework.  Development of differentiated and risk based approach to ALB and Departmental relationships.  Move towards standardised and stable data exchange Perhaps most importantly;  Trust and mutual respect fundamental in underpinning effective relationships  Both parties need to understand context and priorities from differening perspectives 13

Core values retained Shift towards building relationships is underpinned by drive towards efficiency;  Reforms and expected savings will still need to be delivered and the performance of Departments will continue to be monitored by Cabinet Office and the NAO (and ultimately Public accounts committee).  Cabinet Office also looking at Benefits Realisation Within DCLG, the Permanents Secretary’s priorities include;  Completing the Department reform programme and delivering the expected savings  Improving the effectiveness of the relationships between Dept and its NDPBs in line with It Takes Two 14

Revised Framework Document Need to consider recent It Takes Two report, but the current Draft includes key revisions to clarify existing working practice :  Spending Controls, including rules on lobbying & marketing.  Openness & transparency measures.  Clearer disclosure of risks  Integration of performance review expected of ALB’s  Triennial Review process 15

Triennial Review guidance  Framework sets out provisional dates.  CO guidance available on mandatory triennial review process for all Government Regulations and Regulators http://www.civilservice.gov.uk/wp-content/uploads/2011/09/triennial-reviews- guidance-2011_tcm6-38900.pdf  Triennial Review split in to two stages  Assessing retention of the regulatory function (typically 3 month review) Followed by:  Assessing the most appropriate regulatory Structure 16

Localism Bill Localism Bill includes measures worth mentioning;  ARB defined as competent authority under two European Directive (Qualifications Directive and Services Directive) - DCLG and UK Government accountable to European Courts.  Royal Assent given on 15 November 2011 and vast majority of the Act’s planned secondary legislation is already in force  Localism Bill sets out mechanism for Government Departments to pass on some or all of any fine levied by European Commission (’infraction penalties) for non compliance with European Law.  Intended to ensure that risks are shared and encourage responsible behaviour.  Safeguards in place to ensure that measures exercised responsibly. 17

Guidance on pay remits  Cabinet office has now issued guidance setting out process to develop business plans for pay remits over next two years.  Primary increase in overall pay bill limited to 1% per year .  Emphasis in longer term shift away from automatic contractual milestones towards performance related milestones,  Measures likely to come forward in near future to ensure all payments through departments and Government agencies NDPB’s are within PAYE system.  Shift towards ‘localised’ pay scale arrangements (unlikely to affect ARB). 18

Questions and answers - April 2011 Richard Harral