Conclusions and recommendations
Housing (PSA 20 and DSO 2)
1. We
commend the Department for the focus which it has maintained on
[the issues of chronic undersupply of housing and the effects
of the credit crunch] and for the progress which it has reported
up to now. However, we anticipate that future reports will show
much weaker progress as the effects of the credit crunch feed
through into reported figures for new housing completions. The
Department will need to continue to report clearly and honestly
on progress, both to ensure accountability for its performance
and to enable it to adjust its programmes appropriately to take
account of the effects of its policies. (Paragraph 12)
Planning (DSO 5)
2. We
reemphasise the importance of maintaining the supply of planning
skills to the achievement not only of the central aim of a decent
home for all but to a range of Government objectives. We call
for greater Ministerial focus on this area and hope that it will
result in improved performance being reported in the next Departmental
Annual Report. (Paragraph 18)
Fire and Rescue Services (DSO 6)
3. It
is clear from the National Audit Office's comments on the range
of projects undertaken in the Fire Service that project management
skills are lacking in the Department and that this is having a
serious effect on the achievement of the Department's objectives.
(Paragraph 24)
4. We commend the
Department and the Fire and Rescue Service for the progress which
it has made on the most important of its DSOs, reducing the incidence
of fires and the number of deaths and casualties from them. (Paragraph
25)
Efficiency targets
5. Last
year, we congratulated the Department on the achievement of its
SR04 efficiency targets, but said that we would "watch with
interest" to see whether it was capable of achieving the
further demanding targets which have been set for it in the CSR07
period. As is evident from the above, achievement of the Department's
overall target of £887 million in efficiency savings by March
2011 will be extremely challenging. Failure to do so will leave
a very significant hole in CLG's plans. We look forward to seeing
what contingency plans the Department has in place to identify
other sources of efficiency savings that will contribute to the
£887 million target, or otherwise to cover the shortfall
should they not be achieved. Meanwhile, we also look forward to
seeing the details of how the Department will achieve its target
for staff relocation, and the additional £100 million of
savings by March 2011 announced in the 2008 Pre-Budget Report.
(Paragraph 32)
Accountability and the Department's performance
in the round
6. We
share the Secretary of State's frustration at being unable—nearly
two years now into the Comprehensive Spending Review period—readily
to put our hands on a set of figures which show how well the Department
is doing. The most recent Autumn Performance Report offers a fuller
picture than did the DAR, but even now is still not complete.
If the system of setting, and reporting progress against, Public
Service Agreement and Departmental Strategic Objective targets
is to be worthwhile, much greater efforts need to be made to ensure
that information is available at a much earlier stage by which
to judge whether progress is being made. Otherwise accountability
for Departmental performance becomes impossible to maintain effectively.
(Paragraph 37)
Stakeholder engagement
7. We
welcome the steps which the Department has made, and continues
to make, to improve the way in which it engages with its stakeholders
in the formulation and delivery of policy. (Paragraph 49)
Departmental capacity
8. We
commend CLG for the action which it has taken to meet Ministers'
priorities in this difficult period. We also recognise the steps
which the Department has taken to strengthen its capacity and
equip itself to deliver on those priorities. We conclude that
we still have yet to see consistent and sustained evidence that
the Department possesses the full range of skills required for
the effective formulation and delivery of the policies for which
it is responsible. We expect to see further progress recorded
in the next Departmental Annual Report. (Paragraph 65)
9. The Department
can help itself in the task of improving its capability by improving
its workforce planning. Leaving staff in post for an average of
just 9 months before moving them on to something new is not a
sensible way to run an organisation. If our successors in the
next Parliament choose to repeat this exercise of examining the
performance of the Department next year, we would expect them
to look for evidence that this issue has been addressed. (Paragraph
66)
10. Meanwhile, the
issue of Ministerial turnover, though it is one which has an equally
negative effect on Departmental performance, is not one which
the Department itself has any power to address. For that, we must
appeal to the Prime Minister. We urge the Prime Minister to take
greater account of the prerequisites for effective government
when conducting Ministerial reshuffles. (Paragraph 67)
11. We urge both officials
and Ministers in the Department not to allow the challenges of
the economic downturn to distract them from long-term policy goals,
especially in housing. These are important issues for the future
of the country and will require considered and rigorous policy
formulation as well, in due course, as effective delivery. It
will also be crucial that the Department engage effectively with
its stakeholders, both within and outside Government, if the questions
which these issues raise are to be resolved successfully. (Paragraph
68)
The influence of CLG within and outside Government
12. Last
year we said that we looked forward to seeing further progress
towards seeing CLG develop its role as a "big hitter"
within Whitehall and elsewhere. The evidence we have taken for
this inquiry, including from the Department's most recent Annual
Report, shows that there remains some way to go before it can
be described as such. However, there is evidence of progress,
and further evidence that the Department's Ministerial leadership
is aware of what is required and is in a position to exert the
influence which is required to pursue CLG's policy goals effectively.
We look forward again to seeing further progress when we repeat
this exercise of looking at CLG's Annual Report next year. (Paragraph
79)
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