A shift is underway in how government delivers, from where decisions are made to how public money is spent.
As Andy Burnham promises “growth in every postcode”, delivery is set to become more decentralised; with procurement used as a mechanism to support local economic growth, powers shifting from central to local government, and science and tech linked to domestic business growth.
These reforms have strong implications for the Civil Service’s relationship both with local authorities and with suppliers.
Below is an overview of some of the major changes to government delivery announced since the new cabinet was inaugurated last month.
English mayors given more control over finances and policy
Regional mayors are to start receiving a share of income tax and business rates as part of a push for local authorities to move away from a dependence on Whitehall grants.
These measures constitute part of “the largest package of financial powers ever offered to English mayors”, with the government promising to “extend the benefits of devolution across the whole UK” going forward. The reforms will be gradually implemented starting from next spring, with further details to be outlined in the budget.
In addition, local leaders are to have greater control over policymaking in certain areas involving transport, housing, employment, and public services.
This includes the control over rail and bus services, construction of homes, and funding and employment support for 16-19 year olds. A “local first” principle, which would oblige ministers who seek to conserve certain powers in Whitehall to justify their decision, is also to be introduced.
What this means: As funding and decision-making move closer to mayors, many civil servants will collaborate more closely with local government on different priorities.
Government suppliers pushed to support British jobs
Government is also changing how it assesses businesses bidding for public contracts to encourage the creation of high-quality local jobs and widen opportunities for young people.
Under the new plans, the benefits a prospective supplier would bring to the local community will carry twice as much weight for contracts worth £5 million or more, accounting for 20% of the score when bids are evaluated.
Companies which create jobs that pay above minimum wage, “treat workers properly”, and offer training to tackle local skills gaps - such as by offering 45 days of work experience - will also receive extra credit.
In addition, businesses are encouraged to target support towards young people not in education, employment or training (NEETs), care leavers and individuals with long-term health conditions.
However, in a move to reduce “red tape” for small businesses and civil society organisations, these secondary requirements will only apply to contracts worth over £1 million. Smaller organisations are also expected to benefit from simplified rules.
This comes as the government announces its plan to use its £90 billion in purchasing power as a level for economic growth by working closely with local and mayoral authorities to ensure that regional priorities are being centred when contracts are awarded.
What this means: For government, procurement will become a more explicit tool of local economic policy; for suppliers, demonstrating where and how they create good jobs and skills opportunities will increasingly be a part of winning major contracts.
Upgrade to government cloud procurement framework to benefit both public sector and British SMEs
The UK’s public sector cloud procurement framework has received a significant upgrade, with its newest iteration facilitating the buying process for public sector customers and expanding opportunities for British SMEs.
“G-Cloud 15”, launched by Government Commercial Agency, brings together three previously separate frameworks into a single streamlined agreement, enabling public sector services to buy all their cloud services together.
It features both a modernised classification system and comprehensive supplier evaluation, making it easier for public sector organisations to identify the best-suited supplier for them. Buyers will also be able to conduct more thorough tests at call off and run competitions for their needs.
Rather than having to wait several years if they miss the original window, new and growing businesses are permitted to join the framework during an 18-month re-opening period, as well as at regular intervals throughout its four-year duration.
What this means: Public-sector buyers should gain a simpler and more competitive route to cloud services, while smaller suppliers have more opportunities to enter the market and compete without needing the resources of a large bid team.
Changes to the machinery of government reflect new priorities
The first week of Andy Burnham’s premiership saw the announcement of significant changes to the machinery of government, cementing devolution as key government priority, and science, technology and AI as drivers of economic growth.
This began with the establishment of the much publicised No 10 North, which took over oversight of local economic growth from HM Treasury and MHCLG, as well as devolution strategy from MHCLG.
No 10 North, alongside No 10, will be housed in the new Office for the Prime Minister and Cabinet (OPMC), established to widen the operation around the Prime Minister and ensure that the Government’s strategic priorities are delivered effectively. The OPMC will also house core Cabinet Office functions, including a new AI Taskforce.
The Department of Digital, Culture, Media and Sport, as well as the Department for Business, Innovation, Science and Trade (BIST; formerly the Department for Business and Trade) have been expanded in recognition of the relationship between culture and technology, and the economy and innovation respectively.
This expansion has in large part been enabled by the redistribution of the responsibilities of the Department for Science, Innovation and Technology, which has now been abolished.
As part of the government’s reindustrialisation agenda, BIST will concentrate on new and emerging sectors, providing throughout the process of business development, from early-stage research to the foundation and scaling of innovative firms.
Further changes include the establishment of a “OneGov Delivery Agency”, to manage operational services at arms length, and the redistribution of a number of Cabinet Office functions to other departments, including the Office for Equality and Opportunity and the Public Sector Fraud Authority.
What this means: These changes redraw the map of government, shifting responsibilities, decision-makers and routes into government. ____
Overall, these reforms represent a shift in where government decisions are made and how public spending is expected to support wider priorities.
Civil servants can expect to work more closely with mayoral and local government as well as with a wider range of small and medium sized businesses. For suppliers, meanwhile, success will depend increasingly on understanding government’s new priorities, and demonstrating the contribution they can make to them.