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

ARB Board Meeting DCLG Update

Richard Harral

• May 2012

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Department for Communities and Local Government

Eric Pickles Secretary Of State Grant Shapps Minister for Housing and Local Government Gregg Clarke Minister for Decentralisation and Andrew Stunell Parliamentary Under Secretary

• f State

Bob Neil Parliamentary Under Secretary

• f State

Baroness Hannham Parliamentary Under Secretary

• f State

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DCLG / ARB accountability

Andrew Stunell OBE MP Parliamentary Under Secretary

• f State
• Integration
• Race equality
• Building regulations
• Big Society, housing and

regeneration

• Architects regulation

Sir Bob Kerslake Permanent secretary Head of the Civil Service

Defined Accounting Officer for Architects Registration Board

Parliament Cabinet (and PM) Secretary of State

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DCLG Organogram

DCLG BOARD Ministers Executive Team Non-Executive Directors

Neighbourhoods Group Localism Group Finance & Corporate Services Group

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Neighbourhood Group Organogram

Neighbourhoods Group

Welfare Reform Division Homelessness & Support Division Building Regulations & Standards Bob Ledsome Climate Change & Sustainable Buildings Division

Programme Management Analytical Support

Interface on Universal Credit issues and Local Government/Finance Interface on Budget Measures: including Housing Benefit changes and Homelessness

HOMELESSNESS STRATEGY Preventing Repossessions Strategy Rough Sleeping and Statutory Homelessness Strategy & Delivery: Housing for Older People BUILDING CONTROL SYSTEM POLICY Code for Sustainable Homes and Housing Standards BRS PROGRAMME BUILDINGS REGULATIONS

GREEN DEAL EPBD / EPC Development

Strategy and Programme Management

EPBD Operations

BRS ECONOMIC ANALYSIS Strategy & Delivery: Supporting People Climate Change Adaptation

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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

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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

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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 The number of ALBs will be reduced by two thirds A further £1.6bn is to be devolved to local government – which increases the reduction in DCLG’s resource budget to 51% The Government Office network was closed by the end of March 2011 DCLG’s capital spending will be reduced by 74% 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

NOTE: Figures as previously announced. Updates to be made available in due course

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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

Change Across Government

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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.

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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.

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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

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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

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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

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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

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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
• r 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.

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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).

Questions and answers

Richard Harral

• April 2011