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Thank you, Larry, for that introduction, and my heartfelt appreciation goes to the entire team at LSE for hosting us this evening. It is a pleasure to return! I am also grateful to all of you attending the Cabinet Secretary annual lecture, especially to the Prime Minister and the First Secretary of State, whose busy schedules make their presence here all the more valued.
Reflecting on my first day in the Civil Service, which was just over 26 years ago, I recall being shown to my office within the Lord Chancellor’s department. At that time, I held the title of ‘Grade 7’, which, according to the classification system in use back then, afforded me a whole office to myself, complete with a meeting table and six armchairs.
However, on my second day, I was informed by the facilities team that they had mistakenly assessed my rank, believing me to be a more senior ‘Grade 6’. By the end of that day, those six armchairs had been replaced with four armless chairs, a tangible reflection of my newfound lower status.
This anecdote is not meant to criticise the Civil Service of that era but rather to illustrate the environment in which we operated: one characterised by rigorous discipline and transparent traditions that allowed everyone to understand their standing, even down to the office furniture. Yet, it also highlights the rigidity of bureaucracy and the emphasis placed on hierarchy and procedure. Although no one intended to expend energy on rearranging furniture, this was the result of a set of rules designed to achieve something quite different.
My Journey in Public Service
In the year 2000, I graduated from LSE with a Master’s degree in economics, feeling somewhat uncertain about my career path. Just three months later, I entered the Department on a temporary economist contract, which my father, a physics professor, regarded as the proudest day of his life.
Before long, I became captivated by the complexity of issues at hand and felt a profound sense of purpose working for my country. This passion led me to remain in the Civil Service, where my studies in industrial economics and game theory under the tutelage of John Sutton provided an excellent foundation for a career in public policy, illustrating how individuals and organisations respond to various incentives and conditions.
Every challenge the state faces often revolves around establishing incentives and systems to influence behaviour. Like countless civil servants, I find immense fulfilment in addressing these issues for the benefit of citizens.
Over the past 26 years, the Civil Service has undergone significant transformation. It remains a remarkable institution, essential to the daily lives of individuals across the country, influencing education, employment, safety, tax, and travel. This purpose and impact drive my motivation, as well as that of many others, to excel in these roles. I also recognise the privilege and responsibility that comes with leading the dedicated individuals who carry out this vital work.
The Changing Landscape of Civil Service
My experience has allowed me to observe the realities of this work firsthand: from prisons to border control, and across operational fronts both domestically and internationally. My pride in the Civil Service is profound, but I am equally resolute in my belief that it must evolve.
This evening, I will discuss the theme of ‘Rewiring the State and the Future Civil Service’. I will outline the current position of the Service, highlighting the strengths and values that require preservation, while also addressing the unprecedented moment for change that we face now and the major transformations we have initiated to respond to this moment.
The Civil Service of tomorrow must differ significantly from that of today. While I firmly believe we should not settle for the status quo, it is equally vital to uphold the best traditions and values enshrined in the Civil Service Code. As we look to the future, we must also reflect on our past.
The Civil Service has been in a state of continual evolution since its establishment and formalisation in the 1854 Northcote-Trevelyan report, considered the foundational document of the impartial, permanent Civil Service. This report, commissioned by Gladstone during his tenure as Chancellor, recognised that outdated methods based on patronage could no longer govern a rapidly modernising world.
Historical Context and Modern Imperatives
The recommendations of Northcote and Trevelyan were significant: recruiting the best individuals through examinations, promoting based on merit, and standardising first appointments to establish the generalist concept. The Cabinet Office, created in 1916 under Prime Minister Lloyd George, aimed to streamline the war effort, led by Maurice Hankey as the inaugural Cabinet Secretary.
Over the decades, the landscape has evolved dramatically. The Haldane Committee of 1918 established departments based on service delivery, with a new emphasis on evidence-based policymaking. The 1943 Court of Appeal case introduced the Carltona principle, asserting that civil servants and Ministers share a singular legal identity. This principle remains foundational to the Civil Service’s operation today.
Numerous committees, reports, and initiatives have further defined and shaped the role of the Service, with the contributions of my 14 predecessors paving the way for the changes I will discuss tonight.
In 1996, the Civil Service Code, introduced under Robin Butler and subsequently updated under Richard Wilson, codified our core values: impartiality, objectivity, honesty, and integrity. However, these values must translate into effectiveness to legitimise an impartial Civil Service.
Addressing Contemporary Challenges
With the Constitutional Reform and Governance Act of 2010, these values were enshrined in law, reinforcing merit-based recruitment and competitive processes. As a result, the Civil Service has earned a reputation as one of the most admired globally, with approximately 50 countries modelling their civil services after ours. Nevertheless, we must consistently prove our value to successive administrations, as we serve Ministers and execute their agendas.
My role is to enhance the effectiveness of the Civil Service, and the transformation programme we have begun aims to establish a modern, world-class organisation renowned for excellence in service delivery and technological integration, earning the trust of both Ministers and the public.
The Prime Minister has challenged the Government to facilitate a radical shift in authority, resources, and accountability across the state, decentralising powers from central to regional and local government. This will lead to a streamlined, strategic Civil Service focused on challenges best addressed at a national level.
Today, when we refer to the Civil Service, we describe a vast, intricate ecosystem comprising over half a million individuals dedicated to public service, larger than any single private sector entity in the nation. The majority of our workforce is engaged in frontline delivery, with traditional ‘policymakers’ constituting just 7% of our personnel.
Urgency for Reform
In a 2024 Blavatnik Index assessing civil service effectiveness, we ranked joint sixth overall. I aspire for us to reach the top position. Other nations are actively restructuring their states for strategic agility, as seen in Singapore’s dismantling of traditional policy silos, South Korea’s reshaping of its executive branch, and Finland’s integration of citizen feedback into legislative processes using AI.
We must adopt equally bold strategies. I have heard the criticisms of the Civil Service, which, though familiar, are nonetheless important:
- Risk-averse and tame
- Reactive rather than strategic
- Siloed, lacking cross-boundary collaboration
Addressing these criticisms is essential. Throughout my 26 years in the Service, including nine as a Permanent Secretary, I have witnessed some of these issues firsthand, acknowledged improvements in others, and recognise my own culpability at times. I am determined to remedy these shortcomings.
Ultimately, such behaviours stem from systemic incentives and expectations. If we seek to change behaviours, we must also reform the underlying system.
Currently, nine months into my tenure as Cabinet Secretary, I am increasingly convinced that we are at a critical juncture for the country. We are navigating a period of significant global uncertainty, where technological advancements are transforming every aspect of life, and trust in institutions is eroding.
Five Imperatives for Change
The Civil Service must be reimagined, arguably in the most fundamental way since its inception, to effectively serve the Prime Minister and the Cabinet while delivering for the British public. I identify five converging imperatives that collectively present a compelling case for transformation:
- The rapid advancement of Artificial Intelligence;
- New global threats facing the UK;
- Declining public trust in institutions;
- The urgent need to enhance public service productivity; and
- Implementing the Prime Minister’s radical ‘devolution by default’ agenda.
Let us examine each of these factors in turn.
Firstly, the unprecedented technological shifts driven by Artificial Intelligence present both opportunities and challenges for the state. AI is evolving at an unprecedented rate, and its integration will fundamentally alter the Civil Service’s operations, from policymaking to direct service delivery.
The traditional model of state-administered, siloed services is no longer adequate. We now serve a public equipped with technological tools and capabilities previously unimaginable. The escalating demands for automated, high-volume services are already