Public Administration - Fourth Report

SPECIAL ADVISERS: BOON OR BANE?

Here you can browse the report together with the Proceedings of the Committee. The published report was ordered by the House of Commons to be printed 28 February 2001.


CONTENTS

REPORT

SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS

ANNEXES TO THE REPORT

MINUTES OF PROCEEDINGS

 


FOURTH REPORT

The Select Committee on Public Administration has agreed to the following Report:—

SPECIAL ADVISERS: BOON OR BANE?

Context

1. In 1999 the Committee decided to carry out a wide-ranging inquiry into 'Making Government Work', looking at issues relating to the Government's Modernising Government and civil service reform programmes of the Government. We intend to report on these shortly. As we took evidence, we decided to separate out certain strands of the inquiry for particular attention. Special advisers was one of those we chose. Their role has become contentious, but we agree with one of our witnesses, Professor Anthony King, that advisers are too important to be the subject of party political controversy. [11] We hope we can contribute to sensible discussion of their role.

2. The question of what advice and support Ministers need and want, beyond that supplied by the permanent civil service, is central to the issue of special advisers that exercises so much parliamentary, public and media commentary. It is an issue that usually generates more political heat than useful light.

3. The use of special advisers is not new. The existence, since the Northcote-Trevelyan reforms of the 1850s of a civil service which was politically neutral and recruited and promoted on merit, and the absence of a cabinet system of ministerial advisers (such as prevails in many other European countries) or the wholesale change of administration (as happens in the United States of America) has led Ministers and Prime Ministers, certainly as far back as Lloyd George, to appoint confidants. These were people who shared and understood ministerial preoccupations and had political skills and contacts that civil servants lacked. Such people may either bring up-to-date specialist knowledge beyond that available in-house or help the Minister to stay in touch with the world beyond Whitehall (or both). The current system was formalised in 1974, when Prime Minister Harold Wilson decided to allow Ministers to appoint advisers on a regular basis. While many advisers are attached to individual Ministers, there have periodically been groups of them employed at 10 Downing Street to advise the Prime Minister of the day on wider policy issues.

4. Special advisers are part of a long-established tradition for widening the advice available to Ministers. In 1968, the Fulton Report on the civil service said of the tradition: 'We welcome the practice as a means of bringing new men and ideas into the service of the state'.[12] Since then, the explosion of think-tanks of assorted kinds has opened up new links between politicians and external sources of policy advice. Some want to take this process further, perhaps through a fully-fledged cabinet system or putting policy advice to government out to contract, but here we confine ourselves to the more limited terrain of special advisers.

5. According to the Ministerial Code, every Cabinet Minister may appoint up to two advisers, "political" or "expert". In practice, as the Neill Committee has pointed out in its Sixth Report (Reinforcing Standards), this restriction is not universally observed, particularly in the Departments with wider remits, and in response the Government have agreed to amend the Code accordingly. Ministers may also appoint an unspecified number of unpaid advisers, while the growth in the number of Parliamentary Private Secretaries (PPSs) in recent times (there are currently 53), has extended this support system to even the most junior Ministers (at the cost, some argue, of diminished parliamentary independence in relation to the Executive).

6. At 22nd January 2001 there were 78 special advisers in post, the pay costs for whom were estimated to be £4.4 million in the current financial year.[13] As of December 2000, forty advisers worked in Departments,[14] the remainder in Downing Street, where no limit applies. On 11 February 2000 of the advisers in Downing Street, 12 worked in the Policy Unit, 3 in the Research and Information Unit, 5 (including two from the Media Monitoring Unit) in the Press Office and 2 in the Strategic Communications Unit[15], figures confirmed by the Cabinet Office on 27 February 2001 as being still being broadly correct. Two advisers (the Prime Minister's Chief Press Secretary and his Chief of Staff) have authority over civil servants under the Civil Service Order in Council as revised in 1997; the Order contains provision that up to three may be in this position.

Conduct of the inquiry

7. We heard oral evidence specifically on special advisers from Lord Lipsey, Lord Blackwell and Dr William Plowden (former special advisers) and Professor Anthony King (Professor of Government, University of Essex) Lord Blackwell. Other relevant oral evidence, taken mainly in the context of our parallel inquiries into Making Government Work and the Ministerial Code, was heard (in chronological order) from: Sir Richard Wilson (Cabinet Secretary); Professor Robert Hazell (Director, Constitution Unit and Professor of Government and the Constitution, University College, London); Professor Peter Hennessy (Professor of Contemporary History, Queen Mary and Westfield College, University of London); Sir Peter Kemp (former Permanent Secretary and Foundation for Accountancy and Management); Professor Vernon Bogdanor (Professor of Government, Oxford University) ; Kate Jenkins (Kate Jenkins Associates); Lord Neill of Bladen (Chairman of the Committee on Standards in Public Life); Rt Hon John Major MP (former Prime Minister); the FDA (the trades union representing senior civil servants); Mr WR McKay, Clerk of the House of Commons and Mr Archie Cameron, Director of Operations, Fees Office; representatives of the firms of accountants PricewaterhouseCoopers, Hard Dowdy and Silver Altman; and from Ms Margaret McDonagh and Professor Keith Ewing for the Labour Party, Mr David Prior MP and Mr Stuart Harris for the Conservative Party and Mr Nigel Bliss and Mr Ben Williams for the Liberal Democrats; and from the Rt Hon Dr David Clarke MP, the Rt Hon Michael Heseltine MP and Lord Simon of Highbury. We received a paper from Leighton Jenkins (King's College, London)[16]. We are grateful to all those who have assisted us.

8. We note that Ministers in the Scottish Executive and Assembly Secretaries in the National Assembly for Wales have the right, under an Order in Council, to appoint, on a collective basis, a limited number of special advisers. It is not for us to consider these except for comparative purposes.

Issues

9. The whole question of the role of special advisers in government has been the subject of much attention and some controversy. A range of issues and concerns has been raised about them. Are they necessary? Who should pay for them? How many should there be? How are they appointed? What do they do? Are there different kinds? What is their relationship to permanent civil servants? How accountable are they? Such questions have helped to shape our inquiry. We do not claim to have given them all exhaustive treatment, but we have tried to examine those that seemed to us to have a particular significance for the conduct of government.

10. Special advisers have been among the subjects considered by the Committee on Standards in Public Life, in its first Report of 1995 and then in the Sixth Report, published in January 2000. The First Report recommended that they should be subject to the business appointment rules under which former civil servants are restricted in the employment they may take up after leaving the service. The Government accepted this recommendation. In its Sixth Report, Reinforcing Standards,[17] the Committee rejected the suggestion that advisers should be paid out of party funds and made a number of recommendations directed to limiting their numbers, regulating their conduct and extending parliamentary oversight. These recommendations have been largely accepted by the Government and will be incorporated in the proposed Civil Service Act. The subject of advisers figured prominently in the debate on the Report which took place in the House on 3rd July 2000.

11. Our interest in the subject of advisers differs somewhat from the Neill Committee's. Its focus was mainly in the ethical aspects of the issue, whereas we are also concerned with the part that special advisers play in the machinery of government. Our canvas is therefore broader. As will be seen, our conclusions also differ in some respects from those of the Neill Committee, most particularly on the matter of how any limitation on numbers is to be achieved, but we benefited greatly from the Committee's work.

Our approach

The value of advisers

12. Lord Neill reported that 'almost all witnesses made clear their view that special advisers were valuable components of the machinery of government'.[18] This conclusion reflected those of a number of studies over more than thirty years.[19] The Neill Committee itself commented: 'We believe that special advisers have a valuable role to play precisely because they are free to act and advise in a way that a politically-impartial civil servant cannot. None of our witnesses dissented from this general view. A former adviser, William Plowden, summarised their value: they can 'vicariously multiply Ministers' contacts with MPs, officials, outside interests and also with other Ministers, including the Prime Minister; evaluate proposals and advice coming up from officials; consult sources other than those favoured by officials; act as an informal sounding board for a Minister's ideas or anxieties'.[20] Enthusiasts of this view argue that special advisers form a useful counterweight to what is sometimes perceived as civil service inertia, but even the FDA, the civil service trades union representing the grades most likely to feel threatened by advisers, were sanguine about their use. In their view the arrangement brought general benefits all round though there were 'occasions when....you get problems with 'individuals'.[21] This is a useful reminder that whatever the benefits in principle much depends on the quality and contribution of individual advisers. The FDA also explained how the existence of advisers can help the smooth functioning of the civil service: 'Within the UK system, Ministers inevitably need certain tasks undertaking that, were they performed by civil servants, would take them across a political line. In practice the current system allows those functions to be undertaken by special advisers, thus preserving the impartiality of the civil service. Moreover, a special adviser performing their job effectively and reflecting the views of their Minister can assist greatly in the smooth running of the Department'.[22] Nor did they think there was anything exceptional about the way ministers in the present Government used advisers, other than that 'Some of them had placed slightly more emphasis on the role of special advisers in certain circumstances'.[23] They even agreed that the number per Minister might possibly be increased from two to three without resulting in a cabinet system.[24] Lord Lipsey reported the alarm of one Permanent Secretary, on being told that his incoming Minister proposed to work without a special adviser.[25] However, this general agreement on the value of advisers did not prevent concerns being expressed about some aspects of the present arrangements. We discuss these concerns shortly.

A misdirected attack?

13. The number of special advisers has almost doubled under the present Government, reflecting its expressed intention to strengthen the centre of government. The number of advisers, starting in single figures in the early stages of Mrs Thatcher's first administration, had doubled by the time of her resignation in 1990. A further doubling took place during the six and a half years of the Major administration, peaking at 38 in early 1997. In January 2001 there were 78. This increase has been the subject of some adverse comment: for example, Professor Hennessy referred to special advisers as being 'near rampant'.[26]

14. It is in No 10 Downing Street that the growth in the number of advisers has been most marked. Exact figures for earlier years are hard to come by, but according to Dennis Kavanagh and Anthony Seldon, from 1995 to 1997 there were six.[27] According to a diagram supplied to us by Sir Richard Wilson in February 2000[28] there were at that time 27 special advisers out of a total of 149 staff. They included the Chief of Staff and his deputy, the Chief Press Secretary, 12 out of 21 staff in the Policy Unit, five out of fourteen in the Press Office and two out of eight in the Strategic Communications Unit. It is in part these developments that have led some commentators, including Professor Hennessy, to talk about the development of a Prime Minister's Department that will not speak its name.[29]

15. We believe that much of the criticism of the use of special advisers, concentrating as it does on their numbers, is misdirected. If they really improve the machinery of government, then it is clearly sensible to have as many as the system requires. If they are ineffective, or even damaging, then it is sensible to cull them. The key question is not how many there are, but what contribution they make to effective government. When this is established, the further questions concern the framework and rules within which they operate. Although we accept the general evidence on the value of advisers, it would be useful to have more particular evidence. Unfortunately, because of the limitations on the information available, it has not been possible for us to explore this as fully as we would have liked.

16. Advisers are appointed by Ministers with the consent of the Prime Minister. This system, with no external checks, opens up the question of how it can be established that those appointed represent value for money and are not simply the recipients of patronage. As Professor King said: 'We are talking about seventy­one people, of whom roughly fifty are out there in special departments. Whether the special advisers ­ I pick these names at random ­ in the Department of Health and the Department for Education and Employment are performing effectively I simply do not know. I suspect nobody knows except the minister in each department. I have no reason to think that they are ineffective but I have no evidence with which to measure their effectiveness either'.[30] This is an important point, to which we return.

17. There are of course bound to be problems in assessing the effectiveness of people recruited to advise on policy. The Clerk of the House referred to a similar difficulty in relation to the employment of staff out of Short Money, that is financial assistance to opposition parties (see paras 40 to 53), as it is difficult to assess value for money received for expenditure on the development of policies which are not implemented.[31] The difficulties are apparent, but, as the case for special advisers depends on a view of their effectiveness, we would like to see this issue receive more attention. One place to start is to try to find out who they are.

Who are they?

18. Advisers are a kind of civil servant, but an anomalous kind. They do not have to be appointed on merit; their performance is not assessed by other civil servants; they are appointed personally by a Minister, with the approval of the Prime Minister; and they do not have to observe the normal civil service principles relating to political impartiality. Four documents govern their employment: the Ministerial Code, which authorises each Cabinet Minister to appoint up to two advisers (a limit not universally applied in Departments and which does not apply at all to No 10 Downing Street); the Civil Service Orders in Council, which first derogated from the requirement that all civil servants be appointed on merit and subsequently allowed up to three to be given authority over civil servants); the Model Contract for Special Advisers (established and published in May 1997 by the Labour Government) which is designed to set out what they may and may not do; and the Civil Service Code - to which, with the exception of the requirements relating to objectivity and impartiality - they are all subject.

19. Professor King thought that the status of advisers as being 'neither hog, dog nor mutton'[32] was the result of a historical accident and should now be reviewed. He observed that 'at the top of government in this country we have always had ministers or civil servants, and when special advisers appeared on the scene there seemed to be felt a need to assimilate them either to ministers or civil servants. They clearly could not be assimilated to ministers...therefore they were assimilated to civil servants and given civil servant-like status'.[33] He suggested that 'we should consider whether there should not now be accepted as being in government three groups of people- ministers, career officials and special advisers and whether there ought not to be for special advisers not merely their own model contract but rules governing their behaviour, statements governing their responsibilities and indeed statements of what they should not do and perhaps a separate code of ethics relating to them'.[34] Lord Lipsey took a similar view: 'What I think is the cause of a lot of our frustrations in this area is that we are trying to push everything into a box called "civil service as we have always known it" and some things do not get in that box. Rather than shove it into the box, I would rather see a new box in which it fits comfortably, which is open, above board and subject to public scrutiny'.[35] These are important points and we return to them later.

20. If judgements are to be made about the value of special advisers, it is necessary to have at least basic information about who they are and what they do. While the names of advisers and the broad salary bands which cover them are published,[36] not much other information about them is available. Parliamentary Questions to Ministers about the activities of special advisers tend to elicit responses along the lines of 'the travel is consonant with the Model Contract'. Professor King observed that 'we know a fair amount about how many there are in government at the moment and we know a good deal about what they are paid, but I do not think we know enough about who they are, their educational background, their career histories'.[37] We wrote to all Departments asking for this information, as well as for information about the policy areas covered by each adviser and the nature of their work. The responses we received were illuminating in their variety, both in terms of what was said and what was not said. The Department of Culture, Media and Sport, for instance, provided full details including hobbies and number of examination passes, while the Ministry of Defence replied that 'requests to Departments about the educational qualifications and career history of any civil servant would normally be turned down on the grounds that it is personal information between the employer and employee. If individuals choose to provide such information.eg entries in Who's Who, Whitehall Companion etc, then that is a decision for them. It is not, however, for Departments to make public information that has been given in confidence' (see Annex 1). The Department of Health provided the information while making it clear that this was because the individual had agreed that they should.

21. In some respects there is more transparency about advisers than there has been in the past (for instance, the Model Contract governing their employment is now published, though individual contracts are not). Yet in other respects there remains insufficient information available about them. As an example, we were not able to take evidence from any serving advisers. Our written request to the Cabinet Office for clarification on the general position on advisers giving evidence drew the response that it was open to the Committee to invite anyone they thought fit but that Ministers might nonetheless decide that the individual invited would not be the most appropriate person to appear.[38] This indication of advisers being off-limits was confirmed when our specific invitation to Jonathan Powell, the Prime Minister's Chief of Staff was turned down[39] and we were offered the Cabinet Secretary instead. When we put it to the latter that the Prime Minister's Press Secretary, also a special adviser, had given evidence in to the Committee in 1998, Sir Richard replied: 'I think Alastair Campbell's evidence, and your invitation to him, was framed in a way which was very directly relevant to the Government Information and Communications Service into which you were, at that time, conducting a review. In terms of what Jonathan Powell does ... that was in terms of his own role, in a way which I do not think you were examining Alastair Campbell'.[40] As we were examining the role of special adviser, this seemed to us to be an unconvincing reason for his non-appearance.

22. It may be that the work of advisers has changed somewhat since it was undertaken by the former advisers we interviewed (Dr Plowden, Lord Blackwell and Lord Lipsey). Certainly the FDA though it had, particularly in respect of the 'work done by Alastair Campbell and his team'. [41] However, our inability to take evidence from current advisers made it difficult for us to assess to what extent the role may have changed. This has made our work more difficult and less complete than it should have been. In the case of No 10 Downing Street, where the greatest number of advisers is to be found, the fact that the Committee's invitation both to the Prime Minister and to the Chief of Staff have been declined make it especially difficult for us to form a view about the role of advisers at the centre of government.

23. We note that the Seventh Report from the Treasury and Civil Service Committee in Session 1985-86[42] contained a list of special advisers with their previous or concurrent outside occupations. It seems strange that in this respect there is less transparency than 15 years ago notwithstanding the Seven Principles of Public Life, of which transparency is one, adumbrated by the Committee on Standards in Public Life. There may be privacy and data protection issues here, but the data subjects are able to give consent. In this instance there would appear to be a clear conflict between the principles of individual privacy and public interest transparency which may hamper attempts to join up government.

24. We believe that much of the controversy surrounding the use of advisers results from this lack of transparency. It is easy to complain that Ministers are allowing 'callow youths to usurp the functions of experienced officials'[43] if little information is made available as to who is advising Ministers. The issue of transparency, with the related one of accountability, is one to which we shall return at several points. We note the FDA's suggestion that individual Ministers should make clear the role they see particular special advisers undertaking, in effect a job description.[44] We believe that it is desirable, in the interests of transparency, that as much information as possible should be made available about people who are being paid out of public funds, consistent with respect for the privacy of individuals, and recommend that Departments should routinely provide as much information as possible about who advisers are and what they do.

How many should there be?

25. Although we have argued that the question of the value of advisers is logically prior to the question of their number, the latter issue inevitably provokes much attention. We heard a variety of views about the appropriate number of advisers. Some witnesses thought that there were now too many, of the wrong kind, in the wrong places. The former Prime Minister, John Major was convinced of this: 'As far as departmental advisers were concerned, I was very disillusioned ... I would have cut back on advisers very dramatically. I think they got out of hand. I think there are too many of them. I think whatever their individual virtues, I think as a collective breed they cause more problems these days for government than they solve'.

26. Several witnesses thought the current number of advisers was about right. Professor King told us that he 'would not see a very strong case, as a general proposition, either for reducing or expanding the role of special advisers'[45]. Although a former member of the Committee on Standards in Public Life, he disagreed with its recommendation that the number should be limited. Dr Plowden thought that there was room for at least as many advisers as there are now[46]. We heard no argument for a substantial increase. Lord Blackwell suggested that too many might cut Ministers off, not only from the civil service but from each other and even from the Prime Minister; and that the appropriate number of policy advisers at No 10 Downing Street is the number which can comfortably be accommodated round a table and hold a single conversation because 'if you start having sub-departments at No10 you have just replicated the problem of having fragmented ministries'.[47]

27. However, Professor Bogdanor argued that the Prime Minister might need more, rather than fewer, advisers. He pointed out that 'at the present time there are three members of the Prime Minister's Policy Unit and two private secretaries dealing with education and health. These people also have other responsibilities. The Departments of Education and Health have I think nine special advisers between them and thousands of officials helping them. One will not get the dynamic for education or health reform unless one has a stronger centre of government'[48]. A former civil servant Kate Jenkins agreed, saying 'I do not think it is a sensible approach to get terribly worried about 10, 20 or 30 people being added to the Downing Street staff. What is of more concern is the question of, if you want to change an institution like the Civil Service, where the driving force has to come from. All my experience has been that it is the Prime Minister'.[49]

28. The Neill Committee recommended[50] that the Ministerial Code should be amended to reflect the fact that 'in certain circumstances a Cabinet Minister may appoint more than two advisers, and perhaps also to set out the circumstances in which this may be done' (Recommendation 18), that the Civil Service Act should contain an overall limit which could only be exceeded by authority of Parliament (Recommendation 19) that, pending the introduction of this legislation, Parliament should be asked to approve a limit (Recommendation 20) and that parliamentary approval be required for any increase in the number of advisers with authority over civil servants (Recommendation 21).

29. The Government response to the Neill Committee recommendations in this respect was somewhat ambiguous. It indicated its intention that the principle of a limit of two advisers per Cabinet Minister would remain in force, that it would explain the reasons for any departure from this, and that it had no plans to increase the number of advisers with authority over civil servants (and that the position on these should be clarified when the Ministerial Code is next revised). It agreed to include a limit on the number of advisers in the proposed Civil Service Act, but did not address the question of a debate in the House to approve a limit pending the introduction of the legislation. While it did say that 'the appointment of special advisers would continue to be regulated by the Civil Service Order in Council', this gives no additional reassurance as to the number of advisers without authority over civil servants. Furthermore, no firm indication was given as to when the civil service legislation might be introduced. Civil service legislation has long been promised, and we believe that its introduction is now urgent. We would expect to see it early in the next Parliament.

30. We are not convinced that a formal cap on the total number of advisers, as recommended by the Neill Committee, is the most sensible way to proceed. We believe that a better approach would be for Parliament to vote a sum of money for special advisers (as it does for Short Money). It would then be for a government to decide how it wanted to make best use of this allocation (for example between No 10 and the Departments, between particular Departments, and between policy advisers and political advisers). The present rules do not apply at all to No 10. Our approach would achieve the objective of limitation while allowing more flexibility in the deployment of special advisers and securing more accountability to Parliament. We therefore recommend that the limitation of special advisers should be governed by the sum voted by Parliament for this purpose.

Different rules for different tribes?

31. Not all advisers play the same role. Our witnesses agreed that useful distinctions could be drawn between different types. Professor King had a 'hunch' that 'there is, at least, analytic distinction between special advisers in the line departments and the people who now occupy some of the offices in No.10' and that the 'second group, the No.10 group, probably ought to be considered and looked at separately and possibly with different rules, and different indications of what was appropriate behaviour for them being worked out'.[51] He added that 'we make the distinction very familiarly between specialist policy advisers to ministers... on the one hand, and, on the other hand, political advisers in the narrower sense. Thinking about this... it occurs to me that one may want to distinguish in addition between all those special advisers who work in line Government departments and who have been there after all for quite a long time... and the special advisers who now work in No.10 who seem to me to be quite a different tribe of people.[52] The former Prime Minister, John Major, suggested that it was possible to distinguish between advisers in the Policy Unit, the structure in No 10 and the advisers to individual Ministers.[53] In a paper submitted to the Committee, Leighton Jenkins suggested that advisers could be classified as executive special advisers (Campbell, Powell), strategic special advisers working at No 10 Downing Street (in the Policy Unit, the Strategic Communications Unit and the Social Exclusion Unit), departmental special advisers, expert advisers, and 'czars'.

32. Much of the criticism we heard centred on the 'political' advisers. John Major told us: 'I think there are too many occasions when advisers, who have a certain amount of knowledge of their minister, talk to the media or others and it is then reported that happens to be the view of their minister. Whether it is or not, it is not for the adviser to do it and I think the proliferation of advisers is too great for the advantage. They may have been very useful to the individual ministers but I think they were becoming a significant handicap to the Government as a whole. When I look back with the wonderful wisdom of hindsight upon the 1990s I do wonder how many of the ministerial spats and difficulties that suddenly exploded in the media - unbeknown to me, that I was at terrible loggerheads with someone I was actually having lunch with at that precise moment, for example - came from political advisers'.[54] He subsequently clarified that it was the proliferation of advisers, not their existence, that he criticised. Michael Heseltine was even more forthright, declaring that 'all these special advisers, the political ones, are going to be the Achilles heel...of this Government before long...I would get them all out. Special advisers are quite different'.[55]

33. Despite such criticism, and the evidence that supports it, we accept that political advisers bring skills which Ministers require and provide an interface with the party in a way that civil servants cannot. As Dr Plowden put it in his memorandum 'If a Minister believes that a 26-year-old can help him with political advice and/or liaising with Millbank s/he is entitled to act on this belief. Events will show if it was misplaced'.[56]

34. Moreover, it is not always possible to distinguish between political and policy advisers. Although evidence suggests that where two advisers are in post there is a tendency to use one for political and the other for policy advice, as Dr Clarke indicated,[57] when we asked each Department whether this was so the replies suggested that it is not invariable practice.[58] Professor King agreed that there was 'overlap between the roles of providing policy and political advice'. Although the distinction between political and policy advisers is clearly a useful one, in practice there are policy-skilled political advisers and politically-informed policy advisers. It is for the government of the day, and for individual Ministers, to decide what particular mix of skills they require. Our recommendation (paragraph 53) would better enable this to be achieved.

35. It may be that an initiative taken in good faith after the last general election has been counterproductive. Sir Richard Wilson explained: ' Special advisers have sometimes been presented in the press as all being spin doctors. The truth is that there are differences between special advisers. Some of them are there to provide a link with the Labour Party of the kind that is described in the Model Contract, some of them do deal with the media, but some of them are what I would previously have described as expert advisers, and we abolished that distinction at the last election. There is a question, I think, as to whether we were right to do that because some of the special advisers have visibly no political role at all. To take the Drugs Czar, Keith Hellawell was recruited through a competition but counts as a special adviser, and he cannot possibly be presented as some kind of political spin doctor. The same applies to his assistant. There are a number of other special advisers, three economic advisers in the Treasury and a number of others, who I think have been brought in because they are experts. There are issues there which arise in relation to the questions you have asked which I think need to be addressed. I think we need to stand back and take a thought about how we handle the wish of governments to bring in experts and whether we can find ways of dealing with that. There is some confusion in the way we lump them all together'.[59] He also told us: 'there is no point in forcing someone into a Special Adviser mould when they could be recruited through normal Civil Service Commission processes'[60]. We do believe that this lumping together causes unnecessary difficulties and that there would be advantages in some attempt at separation. In particular, policy experts of the 'czar' type do not need to be fitted into the same mould as political advisers. If they are to play no political role, there seems no good reason why they should not be recruited under normal civil service procedures (which of course now provide for much more external competition of this kind) and we so recommend.

The case of No 10

36. The advisers at No 10 Downing Street are another category again, or even a set of sub-categories. The origins of the Policy Unit lie in the Political Unit established by Harold Wilson in 1974 (but foreshadowed in 1964-70) to offer more policy and political advice to the Prime Minister than was available from the career civil service. It originally consisted of eight outsiders. Mrs Thatcher initially reduced the number to three but by 1983 the Unit had grown back to eight, comprising a rough balance between civil servants and outsiders. Tony Blair has increased both the size and the influence of what is now called the Policy Unit. According to Dennis Kavanagh and Anthony Seldon, the Unit combined the roles of 'a think-tank (working up policy and seeking ideas from outside the policy specialist) and a French-style cabinet (reinforcing the political direction of the Prime Minister...a Unit member sat on each of the twenty or so departmental review teams set up under the Comprehensive Spending Review and attended Blair's meeting with the minister to agree the terms of the department's final allocation'.[61] Almost all the senior members are outsiders.[62] The strength, though not necessarily the composition, of the Unit is consistent with the Government's emphasis on 'joining up' government.

37. The strength of the Policy Unit concerned some witnesses, particularly Professors Hennessy and Hazell. The latter commented: 'Peter [Hennessy] is quite right about emphasising the importance... of the Policy Unit in No 10 as being one of the nodal points in the special adviser network, that too has doubled. It used to consist of about eight and a mix, roughly equal proportions, of outsiders and civil servants. It has doubled, there are now some 14, but they are almost all outsiders... That is one of the main reasons why the Policy Unit does not integrate well with the rest of Whitehall, it links to the other special advisers in the Departments'.[63] However, even John Major, who was critical of departmental special advisers, told us that he would have strengthened the Unit somewhat, even if not to the same extent and with a mixture of civil servants and outsiders.[64] The Government Reply to the Sixth Report of the Committee on Standards in Public Life made it clear that the government has no plans to increase the size of the Unit. It is difficult to judge the extent to which the Policy Unit, in its present size and composition, brings greater strategic direction and better co-ordination to the operation of government.

38. The total number of advisers in No 10 Downing Street, with their responsibilities, is set out in Appendix 5 to the Minutes of Evidence. We were also supplied with an organogam[65]. Many work in the area of communications. These posts would not appear to be very dissimilar from positions in the Government Information and Communications Service and we question whether they really need to be filled by special advisers. The whole area of communications is a difficult one, especially the line between effective communication of policy and party propaganda. There might seem to be advantages for government in having special advisers in this area but such advantages will soon disappear if the information disseminated comes to be seen as partial or unreliable. We hope to return to this subject. Meanwhile, we recommend that the Government consider whether these posts really need to be classified as special adviser posts or whether they too could be subject to open competition.

39. Discussion of special advisers, centring as it so often does on their role in 10 Downing Street, tends to open debate on whether there should be or indeed is (by stealth according to Professor Hennessy, 'de facto' according to Dr Plowden[66]) a Prime Minister's Department. In our view it would be much better if there were less coyness in engaging in what is a perfectly proper debate on this matter. A Prime Ministers's Department may or may not be the most appropriate means to strengthen strategic capacity and co-ordination in British government, but the issues are important and deserve to be explored. We plan to return to this matter in reporting on our current inquiry into Making Government Work.

The Short Money connection?

40. Special advisers assist Ministers at public expense. Opposition parties represented in the House of Commons receive financial assistance for the conduct of their parliamentary business. This money is known as 'Short Money' after the Leader of the House who introduced it. A connection between special advisers and Short Money was drawn first by Lord Neill, who said 'one of the things I had been thinking about myself was whether you could have a type of Short Money scheme for special advisers'.[67] Lord Lipsey offered a proposal: 'There is money for the Opposition, Short Money... what I think is uncomfortable about the present situation is that special advisers, and here I really refer to the political breed of special advisers, are paid just like they were any other civil servant out of the same pocket without any discrimination. What I would like to see is, as it were, a vote of Short Money for Government where it is not very much money but it would be subject to proper parliamentary control and scrutiny and would send a signal to people that these people are something really quite different from the normal Civil Service'.[68] We decided to investigate further the suggested analogy between expenditure on Short Money and special advisers, the cost of each now being broadly equivalent since the Government's substantial increase in Short Money funding for opposition parties which the House agreed in May 1999. As a matter of courtesy, since the matter affects the House, we wrote to the Speaker, and the correspondence is printed as Annex 3 to this Report.

41. We held one evidence session on Short Money. We took evidence from the Clerk of the House (Mr William McKay) and the Head of Operations, Fees Office (Mr Archie Cameron), from the accountants who provide the audit certificates in respect of Short Money for the three largest parties, and from representatives of the parties themselves. We included the Labour Party in our evidence because, although not currently in receipt of Short Money, they did receive it until 1997 and they and their auditors were in a position to tell us their impression of the system and how they had handled it.

42. The representatives of those parties who gave us evidence on 15th November did not see a parallel between Short Money and special advisers. Ben Williams, for the Liberal Democrats said: 'I am not convinced that there is a parallel between the increase in the number of special advisers and the funding available to the parties through Short Money'. Margaret McDonagh, for the Labour Party, said: 'It is not something that we have debated but I support the position of both special advisers and the allocation of Short money to opposition parties. However, I do not think they are in any way linked. Special advisers are there to give political advice to Cabinet Ministers'. David Prior MP, for the Conservatives, specifically denying the suggestion that special advisers and Short Money could be equated, said: 'The purpose of Short Money is to enable the opposition party to try and level the playing field against the government so that we have some real effort to hold them to account, given the tremendous resources that they have with press officers and the like' and 'Short Money ... is nothing to do with special advisers. Special advisers are in addition to that.'[69]

43. The evidence we heard about Short Money revealed some concerns about the method of accounting for it. As the sums involved are now substantial, we believe these concerns deserve the attention of the House.

44. The payment of Short Money is governed by Resolution of the House. The latest Resolution, passed in May 1999, increased the overall amount payable by 270 per cent, (the cost in 1999-2000 was £4,863,000,[70] with a maximum for 2000-2001 of £5,012,182[71]) and altered the payment basis. Whereas previously it had been necessary for the parties to put in a claim, payment is now made by the Fees Office provided that within nine months after the end of the financial year a certificate from the firm of accountants appointed by the party is received stating that 'the financial assistance received and claimed was expended on expenses incurred exclusively in connection with the party's parliamentary business'. If no certificate were received, no more money would be paid. The National Audit Office scrutinises all certificates as part of its annual audit of the Members' Salaries etc Vote Appropriation Account, but does not take its audit beyond this.[72] The Clerk of the House and the Head of the Fees Office made it clear that they were bound by the terms of the Resolution of the House and could not go beyond it.[73]

45. There has been some discussion as to what, exactly, constitutes 'parliamentary business', which Parliament has identified as the purpose of Short Money but which none of the Resolutions have attempted to define. According to Brian Taylor of PricewaterhouseCoopers, who were appointed to audit Short Money for the Conservative Party after the 1997 General Election, 'we approached the Fees Office in the first year that we were asked to sign an opinion of the use of Short Money. We gathered from that there was no definition, which is why we then asked the party to form a definition, which was very open and was made part of our opinion that we gave. What we recommended to the party was that, rather than having their own definition being attached to our opinion it would be far better to have something that had been sanctioned by the Fees Office. It was the party who approached the Fees Office to discuss whether that could be achieved'.[74]

46. The Fees Office Memorandum continues the story: 'the auditor for the Official Opposition's Short Money account expressed difficulty in certifying that Short Money had been spent on parliamentary business. In response to this, a definition was drafted by the Fees Office and circulated for comment and final approval by the Official Opposition, the Accounting Officer and the National Audit Office. This definition has now been agreed and included in the "Notes for the Auditor" which form part of the re-written audit certificate. Parliamentary business for the purpose of Short Money is now defined as: Research associated with front bench duties, developing and communicating alternative policies to those of the Government of the day, and shadowing the Government's front bench. It does not include political campaigning and similar partisan activities, political fund raising, membership campaigns or personal or private business of any kind'.[75] The Clerk of the House said that he thought that rather than defining 'parliamentary business' the House authorities had attempted to describe it.[76]

47. There was some disagreement as to whether, and if so when, the expanded description of 'parliamentary business' had been conveyed to the other parties. The representatives of the Labour and Liberal Democrat parties told us in our evidence of 15th November that they had only just heard of it,[77] but Mr Cameron told us, in a note subsequent to the meeting that 'all parties had been informed in August 2000 when the new pro-forma audit certificate and the new Notes for the Auditor were sent out from the Fees Office'.[78]

48. The current system is open to the criticism that it places the onus on the political parties rather than on either House authorities or firms of accountants to say that the money has been properly spent, although it is not clear that the previous system was much more transparent. When we suggested to Mr McKay and Mr Cameron that previously they would have seen detailed claim forms, they explained that this was not the case.[79] Mr Cameron explained that even the requirement to produce a contract of employment would not of itself provide conclusive evidence that someone was carrying out the work.[80] They felt that detailed claim forms would help, but were doubtful how much. The firms of accountants also agreed that demanding the submission of more detailed claims would probably create a good deal of work without greatly improving the system. According to Robert Ward of Silver Altman, auditing for the Liberal Democrats, 'it would involve a lot of administration and it would obviously make our task easier. Where do you stop? Are you going to insist that every claim is backed up with an invoice? There has to be an element of trust at some stage'.[81]

49. Nonetheless, all the witnesses thought there was room for more guidance. Mr Ward said, and the other two firms agreed, 'I think probably a more detailed definition of what expenditure is acceptable and what expenditure is unacceptable would be adequate'.[82] The Clerk of the House thought the system could be improved, first by moving the House to clarify the resolution and second, possibly by getting more details and assurances from the parties.[83] Furthermore, he would 'welcome from whatever source- whether the House or the political parties - some more precision, some more reassurance which ran right through the system, as indeed I see in the present suggestions in the Political Parties, Elections and Referendums Bill for policy development. There is an audit structure there.'[84]

50. We suggested to the political parties that it might be appropriate to publish the accounts of how they spent Short Money. All agreed in principle.[85] We note that the Official Opposition[86] and its auditors[87] were unable to give a categorical assurance that its Short Money funding was used exclusively for parliamentary business. We have further concerns that, after an approach by the Party to the Fees Office, a description of parliamentary business was arrived at, without consideration by the House, which seems to allow more latitude in how this money is spent. In particular we are not clear how 'communicating alternative policies to those of the Government of the day' (which is permitted under the expanded description) is different from 'political campaigning' (which is not).

51. We believe that there is an urgent need for stricter regulation as to what Short money may be spent on and more transparency as to how it has been spent. We understand that it will be for the Leader of the House to bring forward an amended Resolution for adoption by the House. We asked the Clerk of the House to draw her attention to the evidence we took and he undertook to do so.[88] We hope that the Leader of the House will take an early opportunity to table an amended resolution so that the House can agree more precisely on what Short Money may be spent and how it is to be accounted for.

52. Special support for public funding for parties in government and special support for parties in opposition are clearly beasts of the same field. Nothing we heard in our evidence on Short Money dissuaded us from our view that it might be possible to put advisers and Short Money on a more open and equal footing. We put to Sir Richard Wilson and also to the FDA witnesses the suggestion that the time had perhaps come to separate special advisers from civil servants and to pay them from a separate fund. Both disagreed. Sir Richard said 'I think the taxpayer benefits and the Government benefits, because if they are the best person for the job the public can be satisfied that the resources are not being used for the benefit of a political party. For the rest, taking Special Advisers as a whole, I think the disciplines which we have for the Civil Service are good ones. I think that Parliament and you as a Select Committee can get some reassurance that the disciplines as they are defined in the Model Contract and in the other provisions of the Civil Service Guidance provide you with some reassurance that the role of Special Advisers is not going wrong or getting out of hand. I do not know that I would advise you to dispense with that kind of assurance. If you had a group of people funded from a pot who were not in any way civil servants, you would not be able to look to me as Head of the Civil Service for the kind of assurance you have been looking to me for just now. You would be basically strengthening the Government of the day and the political party in power and I am not sure that is actually the alteration to the checks and balances which this Select Committee is looking for. But it is not for me to advise you; I am trying to think my way into it'.[89]

53. These are clearly important considerations. However, much of the anxiety about the 'political' special advisers turns on the extent to which partisan activities are paid for by the taxpayer and strain civil service rules. The advantage of considering special advisers and Short Money together is that it opens up a new approach. It would be possible to fund both political support to Ministers and parliamentary support to opposition parties out of a common pot , with agreed rules for both. Instead of regarding the political advisers to Ministers as a special kind of normal civil servant, with all the attendant difficulties, it might be more honest to recognise them as a distinct category, paid for in a particular way and with distinct contracts governing their activities. We do not think this necessarily means a loss of discipline; but it would represent a gain in honesty and transparency. We recommend that consideration be given to the establishment of a separate fund out of which both those advisers whom it was not possible to recruit under civil service rules and Short Money payments to opposition parties could be funded. Such a fund would be commensurate with the total sum now paid annually to non-expert special advisers and in Short money. We recognise that this would necessitate a change in the accounting procedure in that it would probably no longer be appropriate for the Clerk of the House to be involved. If money for special advisers were voted in a block in this way, it would act as a discipline insofar as governments would have to decide how it might most usefully be deployed.

The appointment process

54. Unlike civil servants, most advisers do not have to be recruited on merit or after competition and this in itself can cause problems, even for Ministers. The Lord Chancellor has been taken to an industrial tribunal (unsuccessfully) by women alleging sex discrimination because they did not have the opportunity to apply for the post of his special adviser. The principle of appointment on merit is a safeguard against patronage and its abuse, and it is not clear to us that special advisers should be entirely exempt from its application.

55. We accept that an adviser must be personally congenial to the Minister, but see no reason why this cannot be combined with a basic merit test under Nolan procedures. Sir Richard Wilson's point about the public needing reassurance that they are 'the best person for the job'[90] is relevant here. There could and should also be advertising of the posts (as is done by the National Assembly for Wales[91]) while giving the Minister the final choice between the suitably qualified candidates. Such steps would provide some degree of assurance on the qualities and qualifications of the advisers paid for out of public funds without unduly restricting ministerial freedom. We recommend accordingly.

Special advisers and civil servants

56. Much criticism of the use of special advisers, and in particular of the increase in their numbers, centres on their likely effect on the wider civil service. Some witnesses thought that they might threaten, or were already threatening, that objectivity which many believe to be one of the qualities which set the British civil service apart from almost every other and which is held to be one of its chief virtues. Most of our witnesses paid at least lip-service to this ideal and, while most said there was not (yet) any evidence that this neutrality was being affected, there were some expressions of unease.

57. Professor Hazell was one of those who thought increased numbers had led to a change of role: 'I think this is a step change compared with previous administrations. I know that others often say there have always been special advisers going back to Lloyd George, and it is true, but the numbers are much greater. They have doubled since 1979...That doubling has led for the first time to there being a sufficient critical mass of special advisers that they have started to form an alternative network. As a result, there is much less sharing of information with the Civil Service and much less sharing of information between Departmental Ministers and their civil servants in their Departments and also with other Government Departments, which is the old classic role of a private office'.[92] Lord Lipsey agreed that there might come a moment when advisers reached such a critical mass but believed that 'we are no-where near it at the moment'.[93]

58. While Lord Neill's main concern was with probity, he expressed some concern about the number of advisers, arguing that numbers and role were inextricably linked .[94] In his report he referred to 'the argument that if the numbers of this type of public servant, and their degree of influence, rise to a point where the influence of the "objective" public servants is outweighed, the effectiveness of the principle of objectivity in public life is diminished'.[95]

59. Professor Hennessy was also concerned that the proliferation of special advisers would undermine the neutrality of the Civil Service. In his evidence to the Neill Committee he suggested that 'any signs of professional detachment on the part of career civil servants can all too easily be interpreted as 'not-one-of-us-ery' by the evangelists of the Blair project who, not surprisingly, fill the considerable number of special adviser posts in the various parts of No 10'.[96]

60. Those of our witnesses who, with Professor Hennessy, felt that special advisers posed a threat to the Civil Service feared greater politicisation of the policy-making process. Professor King was unsure that this would necessarily be a bad thing, drawing a distinction between politicisation and corruption: 'I would not insist on the point, but you could have a greater degree of politicisation without having corruption. After all, our system with civil servants playing such a large role within government policy-making is an unusual one as the world goes. In most countries there is a greater degree of politicisation. That is separate from the issue of corruption. Does our system need to be more politicised? That does seem to me to be a matter, largely, for empirical judgment'.[97] It is certainly the case that the UK is unusual in the extent to which civil servants engage in policy formulation and, according to Sir Robin Mountfield, 'the UK remains one of the very few major civil services in the world which is genuinely politically neutral, right to the most senior appointments.'[98]

61. The suggestion that the number of advisers is now sufficient to have an adverse effect on the permanent civil service was strongly rejected by Sir Richard Wilson, arguing that '70-odd advisers could not swamp the senior civil service of 3,700 people'.[99] The argument that advisers are few in number compared to the rest of the Civil Service is plausible as far as Departments are concerned, but becomes less convincing in the case of the No 10 advisers. 'Give me a fulcrum, and I will move the earth' remains a telling observation.

62. The organogram of the No 10 staff provided to us by Sir Richard Wilson following his evidence[100] shows Jonathan Powell as Chief of Staff at the apex, with lines going directly up to him from the Policy Unit, the Press Office and the Principal Private Secretary. Not having been able to secure an interview with the Chief of Staff, we asked the Cabinet Secretary what his role was. In answer to the question 'Is Jonathan Powell in charge at No 10?' Sir Richard replied 'Yes'. He is the Chief of Staff.[101] Subsequently he explained 'what the chart shows you is that Jonathan Powell has lines going to him from the Press Office and Alastair Campbell's side of the business. The Policy Unit, which are all the political advisers and civil servants in that area, also come under this umbrella. Then the rest of Number 10, which is the Private Office itself, the Garden Room, the honours and appointments side and operation of the day­to­day management of Number 10, they come under the Principal Private Secretary. What I am saying to you is that the truth is that the two of them share out the work in that way.'[102] This reply introduced ambiguity about the lines of accountability which the Cabinet Secretary's organogram[103] had appeared to clear up. It is clearly an extremely significant role for a special adviser to play.

63. Some witnesses thought that advisers were taking over roles which had traditionally been fulfilled by civil servants and that this was questionable. Professor King offered anecdotal evidence 'that several people, people going to see ministers from local authorities or interest groups or whatever, have told me that rather to their surprise they found themselves talking to a special adviser rather than, as they used to, either to a minister or an official'.[104] Lord Neill also commented on the possible doorkeeper role of advisers. The FDA were also concerned about the possibility of advisers acting as gatekeepers, Jonathan Baume saying that it is 'not appropriate, I think, on reflection, that a special adviser acts as the gatekeeper to a Minister; the core of the way the Civil Service is structured, the constitutional precedents, all our understanding is that the relationship is between the civil servant and the Secretary of State, the Prime Minister, and that is something we think is important, if we are to use the special adviser system effectively.[105] If communications traditionally received by civil servants were being intercepted by special advisers this would not be good practice, but the FDA had not been given instances of this having happened. They had advertised in the union's journal for examples but had received none.[106] Lord Lipsey had heard of 'special advisers having more say than strictly desirable in the drafting of answers to parliamentary questions'.[107] In his evidence to the Neill Committee, Lord Butler of Brockwell, a former Cabinet Secretary, told the Neill Committee that it would not be appropriate for advisers to usurp the role of the private office.

64. The amendment of the Civil Service Order in Council to allow up to three advisers to exercise authority over civil servants, something formerly forbidden, has caused particular comment. It was an innovation introduced at the suggestion of the FDA, but they have subsequently changed their minds. We asked them to explain why. They said that their original position had been that it would be helpful to the new Government ('it goes back on to transition issues'). They now thought that, while they made no complaint that either post-holder had abused his authority, the experiment should reach a natural conclusion at the next General Election. This was partly because they did not think it was necessary, partly because it contributed to misconceptions about the relationship between the Press Secretary and the Government Information and Communication Service and partly because it set a dangerous precedent. Mr Campbell's authority now derived from the fact that he represented the Prime Minister rather than his possession of executive powers.[108]

65. As far as the Chief of Staff was concerned, the FDA were slightly uneasy about this role being performed by an adviser at all. They also felt that the role of the Chief of Staff was in itself problematic: 'The fact that, in effect, you now have two people working in tandem, the Heywood role, the Powell role, without going into all of the nuances, I do not think seems to be the ideal way to run Number 10; one can question whether that has been overall of benefit to the Prime Minister, and only the Prime Minister can answer that'.[109] On balance they felt that 'if you start evolving a pattern whereby even a small number of special advisers take on executive powers, you are setting a precedent that could then be widened'.[110]

66. We share the reservations about special advisers exercising executive powers. It was meant to be a helpful development (just as the shift of the Chief Press Secretary from being a civil servant to being a special adviser could be seen as serving the cause of honesty) but it has unhelpful implications for established relations within government. The role of special advisers should add to the effectiveness of these relations, not compromise them. Not only should the experiment not be extended but the existing arrangements should be reviewed.

67. Special advisers should certainly not be in a position to influence the careers of permanent civil servants. The FDA evidence was interesting on this point. Jonathan Baume told us that he had it on good authority that special advisers had in some circumstances been present when Ministers interviewed candidates for civil service jobs and that they had access to civil service personnel files. Unfortunately he had received the information in confidence and did not feel able to pass on the details.[111] Pace Lord Lipsey,[112] we cannot think that there can ever be justification for advisers to have any say in the careers of permanent civil servants. Such a development would threaten the key civil service principle of promotion on merit.

68. We asked the FDA what they would do if examples of abuse came to their attention. They explained that matters would need to have reached an extreme pass for them to want to say anything publicly. Their preference would be 'to raise that with the appropriate people within the civil service and if needs be with Ministers themselves'.[113] One consequence of the professional inclination of the service to consume its own smoke is that it is difficult for outsiders to know if there really is a problem. A proper vigilance is therefore the appropriate stance.

69. A particular area of potential tension between advisers and civil servants arises in respect of the Government Information and Communication Service and we return to this when considering the terms of employment of advisers (paragraph 76).

70. It is not unknown for special advisers to become established civil servants. In 1995 Peter Levene (now Lord Levene of Portsoken ), who had been special adviser to Michael Heseltine the Secretary of State for Defence, was made Chief of Defence Procurement in 1985 (an appointment which caused some controversy). Terry Burns, now Lord Burns, who had been Chief Economic Adviser to the Treasury and also Head of the Government Economic Service from 1980 to 1991 became Permanent Secretary at the Treasury in 1991 (though the Chief Economic Adviser might be thought of as policy rather than a political adviser). More recently Geoff Mulgan, formerly an adviser to the Prime Minister, was appointed to head the Performance and Innovation Unit at the Cabinet Office, and David Blunkett's special adviser has also become a civil servant. These recent appointments were made under the normal civil service appointment process.[114] The appointment of Ed Balls as Chief Economic Adviser to the Treasury while remaining political adviser to the Chancellor has been the subject of some comment. As Treasury Adviser he is supposed to offer impartial economic advice while as a political adviser he does not have to observe the Civil Service rule of political neutrality.[115] We see no difficulty in these appointments, (as long as they are made under the normal civil service process) as greater movement, both inwards and outwards, is one of the aims for the civil service. However, appointments of this kind do raise questions about whether at least some expert policy advisers should not be recruited as civil servants in the normal way.

71. There is a further question concerning the subsequent career history of special advisers. In view of the restrictions placed on former civil servants in terms of what they may do when they leave the service, and the fact that following the First Report of the Nolan Committee advisers were brought within these same Business Appointments procedures, it would be interesting to learn what monitoring the Cabinet Office carries out to ensure that former advisers do not use knowledge gained in government in an inappropriate way. The routine publication of information about subsequent employment would be one way to provide reassurance on this point.

What are the boundary lines?

72. Special advisers are paid out of public funds and there must therefore be accountability to Parliament for them. We asked Sir Richard Wilson where the ultimate accountability to Parliament for the work of an adviser lay and he replied 'With the Prime Minister...I support him on that'. When asked if he acted as the eyes and ears of the Prime Minister in that regard he replied that 'he certainly had a responsibility'.[116] He confirmed that Parliament would be entitled to look for an answer from him if advisers had broken the rules. The Cabinet Secretary apart, witnesses felt that special advisers were insufficiently accountable, either individually or collectively, to Parliament. Professor Hazell said 'special advisers generally do need to be subject to rather greater control and accountability'.[117] The Neill Committee found that whereas all the other actors, both Ministers and civil servants, were subject to some kind of code ....the special advisers were subject to nothing other than their contract of employment'. This led the Committee to conclude that 'because of the dual nature of a special adviser as a personal, political appointee of a Minister but subject also to control by the Permanent Secretary through adherence to the Civil Service Code, the lines of accountability and ownership can appear less than clear'.[118] We agree.

73. The Government's response to the Neill Committee explained that 'Special advisers are civil servants. They are subject to the same rules of conduct as other civil servants as set out in the relevant staff handbook, with the exception of the rules relating to political impartiality and objectivity. The appointing Minister appoints on behalf of the Crown, administration of the contract falls to the Permanent Secretary, acting on behalf of the Minister. Cases of difficulty or disagreement should be submitted to the Prime Minister for decision'. We received no evidence on any such cases of difficulty, but it is clearly important that there should be a proper procedure for dealing with them if they do occur.

74. As for the Model Contract for Special Advisers, the Neill Committee found a number of faults with it as a means of holding special advisers to account. For one thing, it is not applied unchanged to all advisers and 'it is understood that there are variations from the model contract in the individual contracts of a number of special advisers' and 'there is no way of confirming whether these variations are minor or substantial' and so 'there is no single public point of reference for anyone seeking to hold a special adviser to account'.[119] He also pointed out significant omissions from the Contract, including the absence of any reference to media contacts, and noting that nowhere in either Contract or Civil Service Code is there any reference to a requirement on advisers to refrain from asking civil servants to do anything which would compromise their neutrality. We further note that the Model Contract states that an adviser may take a grievance either to the Minister or to the Permanent Head of the Department, which seems to us ambiguous. The Neill Committee's preferred solution (Recommendations 22 to 25) was a Code of Conduct for special advisers which would 'Consolidate the appropriate elements of the Civil Service Code, the Model Contract and paragraph 56 of the Ministerial Code, which sets out the duty to uphold the political impartiality of the civil service and other obligations'.[120] This Code would be included in the proposed Civil Service Act and would be enforced by the permanent Heads of Department. We endorse the Neill Committee's recommendations on the need for a Code of Conduct for Special Advisers.

75. In Session 1997-98 we produced a Report on 'The Work of the Government Information and Communication Service (GICS)'[121] . In that report we examined concerns that had been expressed as to whether the Prime Minister's Chief Press Secretary had been using his office to forward the interests of the Government in a way inappropriate to someone paid from public funds as a special adviser. We found no evidence to substantiate this at that time and nor was any submitted when we took further evidence from the service in May last year.[122] Since then Alastair Campbell has been reminded by Sir Richard Wilson of the relevant guidelines. In our 1997-98 Report we said 'it is difficult to avoid some advantage naturally accruing to the party in power from the use of public money to present the Government's policies in their best light'. That remains the intractable fact. We note that the FDA told us in the course of this inquiry that it was not a completely new concept having a special adviser in the role of Chief Press Secretary and that it was not necessarily inappropriate to do so.[123] Whether it is wise for a government to fill the post in this way is another matter. We welcomed then and welcome now Sir Richard's repeated assurances that he remained vigilant to ensure that advisers do not overstep the mark, but we note that the GICS handbook says little or nothing about the Service's relation to advisers and recommend that the next edition should set out the relationship in more detail. Tensions in this area are inevitable, which is why continuing vigilance is appropriate in policing the boundary line.

76. Last Session we followed up our Fourth Report of Session 1997-98 by taking further evidence from the Head of the Government Information and Communication Service, Mike Grannatt. We asked him whether there was tension between advisers and his officers. He replied that it varied, saying 'there are Departments, and I have worked alongside special advisers in such Departments, where the relationship has been very good and very productive. Occasionally special advisers feel very strongly that a particular course should be pursued in the communication sense and will argue the case pretty strongly with the communication people and the decision will then go to Ministers'[124]. We believe that, though we heard no evidence of specific problems, there is a need for particular vigilance in this area and we particularly endorse the Neill Committee's criticisms of the Model Contract insofar as it fails to mention relations between advisers and the GICS, and believe that the proposed Code of Conduct for Special Advisers should give clear guidance on this matter.

77. The Government gave a qualified acceptance to the Neill Committee's recommendations on this matter. It agreed to a separate Code but felt that a separate Model Contract would still be necessary, which seems to us to be sensible. It agreed that 'pending the introduction of the Civil Service legislation the Government will amend the Civil Service Order in Council after the next election to give legislative backing to the current Code and will ensure that the new arrangements make clear where special advisers are and are not covered by standard civil service terms'[125]. It gave no undertaking, however, that there would be full parliamentary consideration of the proposed Code in the period before the civil service legislation is introduced. We would expect to see a draft of the Code at an early stage. We welcome the Government's invitation to us to comment on the proposed Special Advisers Code although such an invitation should not be seen as a substitute for a full parliamentary debate, which should take place at the earliest opportunity.

78. The services of advisers (apart from the unpaid ones) are provided at public expense, and restrictions are placed on their political activities. In particular, advisers are prohibited from taking part in the work of their party's national organisation; and although they may continue, during elections, to give specialist or political advice to their Ministers, they must be careful not to take any active part in the campaign going beyond the provision of such advice and they 'must not take public part in political controversy...and they would not normally speak in public for their Minister or Department'.[126]

79. Professor King raised the question of whether it was true, 'as is sometimes alleged, that some part-time special advisers are taking advantage in the rest of their time of knowledge and contacts gleaned as special advisers? Is it the case that special advisers are spending their time on party political matters at the taxpayers' expense, which they ought not to be doing?'.[127] This suggestion was made particularly in the context of part-time advisers, but it could equally apply to full-time ones. This appears to be a very grey area, policed only by the permanent civil service. We asked Sir Richard Wilson about a recent, well-publicised case where the Chief Press Secretary had been involved in the defection of a prominent member of the Official Opposition to the Labour Party. Sir Richard explained that when the first meeting had been mooted it had not been clear what the object was, so that it had been held in No10, during office hours. Subsequent meetings had been held off the premises in Mr Campbell's own time. Sir Richard added: 'my concern is that the resources of the state are not to be used for party political purposes. The tax-payer is paying Alastair Campbell to work for the Government as the Government, not the Labour Party. My concern therefore is that in his hours at work he is doing work for the Government qua Government. What he does in his own time to support the Labour Party is his own business, as he is entitled to do'.[128]

80. The distinction between an adviser on duty and an adviser off-duty is a fine one to draw, especially in the context of a 24-hour news culture. It is hard to see how an individual could erect sufficient Chinese walls between what he or she knows and does through current employment and through other means. Mr Campbell's intention to resign his employment as soon as a general election is called to work full time for the Labour Party, then return to his post in the event of a Labour victory, is one example of the difficulties. The question is whether there could be a better system. We asked Lord Neill whether it might be possible to distinguish between the work done by advisers for the government and work done for the party and pay them pro rata. He said that he did not know what each of the advisers in post during his inquiry actually did, not having seen their individual contracts, so he did not know how much party work they did but he thought that, for practical reasons, such a scheme would be hard to implement. He said 'I would need to see more evidence as to how it could be done, how it would be workable, how you could partition a day of a special adviser, so much was party political and so much was not. The telephone would ring: "Am I allowed to take another call today? Is that a party political call?" I am not making a joke of it, but it would be incredibly difficult to draw a line, a division such as you suggest'.[129] Such difficulties are inescapable. They would, of course, disappear if advisers were paid out of party funds, but this would be at odds with our view that policy and political advice to Ministers is a proper activity that is appropriately funded by the public purse. Moreover, other difficulties would arise. Tensions and boundary disputes are inevitable, which is why proper policing and codes of conduct are important.

Conclusion

81. All the available evidence suggests that special advisers can make a positive contribution to good government. In particular, they broaden the range of policy advice upon which Ministers can draw. None of this need be threatening to the traditional role of the civil service. Advisers should be seen as augmenting this role, not diminishing it. However, we believe that it is time to put the position of special advisers on a firmer footing. This means recognising them as a distinct category; funding them in an appropriate way; appointing them on merit; and putting a proper framework of accountability around their activities. This is what our recommendations are designed to achieve. Special advisers are now an established part of government. The time has come to recognise this in the way they are treated.

SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS

(a)We recommend that the limitation of special advisers should be governed by the sum voted by Parliament for this purpose (paragraph 30).
  
(b)We recommend that wherever possible special advisers who are to play no potential role should be recruited under normal civil service procedures (Paragraph 35).
  
(c)We recommend that the Government consider whether staff working in the area of communications really need to be classified as special advisers or whether they could be subject to open competition (paragraph 38).
  
(d)We hope that the Leader of the House will take an early opportunity to table an amended resolution so that the House can agree more precisely on what Short Money may be spent and how it is to be accounted for (paragraph 51).
  
(e)We recommend that consideration be given to the establishment of a separate fund out of which both those advisers whom it was not possible to recruit under civil service rules and Short Money payments to opposition parties could be funded. (Paragraph 53).
  
(f)We recommend that special adviser posts should be publicly advertised and the Minister given the final choice between suitably qualified candidates (paragraph 55).
  
(g)The experiment of giving up to three special advisers authority over civil servants should not be extended and the existing arrangements should be reviewed (paragraph 66).
  
(h)We agree with the Neill Committee that the lines of accountability, and overlap in respect of special advisers can appear less than clear (paragraph 72).
  
(i)We endorse the Neill Committee's recommendations on the need for a Code of Conduct for Special Advisers. (Paragraph 74).
  
(j) We particularly endorse the Neill Committee's criticisms of the Model Contract insofar as that fails to mention relations between advisers and the GICS, and believe that the proposed Code of Conduct for Special Advisers should give clear guidance on this matter (paragraph 76).
  
(k)We welcome the Government's invitation to us to comment on the proposed Special Advisers Code although such an invitation should not be seen as a substitute for a full parliamentary debate, which should take place at the earliest opportunity (paragraph 77).

Annex 1

Analysis of Departmental replies

Name of Department
No of
Special
Advisers
Information received/declined/unavailable
MAFF
2
Age, names and work history supplied; no CVs. Responsible for policy advice.
DCMS 
2
CVs received. Political advisers rather than technical experts.
Ministry of Defence 
2
CVs declined; areas of policy interest given. Declined to provide career history and personal details since they are confidential between employer and employee.
DfEE 
5
Areas of responsibility given; no CVs. 4 political advisers;1 policy expert. (2 part-time).
DETR 
5
Name, and area of responsibility given.
FCO 
2
Brief career history supplied. Both policy advisers.
Home Office 
2
Role and biog details supplied including press release announcing appointment of Special Adviser to Home Secretary. 1 political adviser; 1 policy adviser.
Lord Chancellor's
Department
1
CV supplied. Recruited for technical expertise but also undertook political liaison role.
DfID
1
1 position vacant. No distinction drawn between technical expert and political adviser role. Declined to provide career history and personal details since they are confidential between employer and employee.
DSS
2
Areas of policy interest covered; biog details not supplied. Declined to provide career history and personal details since they are confidential between employer and employee.
DTI
2
Areas of interest given; advisers provide policy and presentational advice. Declined to provide career history and personal details since they are confidential between employer and employee.
Cabinet Office and
10 Downing Street
30
Names, titles and responsibilities provided; declined to provide career history and personal details since they are confidential between employer and employee
Scotland Office
2
Names and titles provided. Responsibilities for policy and presentation; declined to provide career history and personal details since they are confidential between employer and employee. (Volunteered 1 further adviser part-time and unpaid).
Leader of the
House of Lords
2
Names and policy areas covered; declined to provide career history and personal details since they are confidential between employer and employee.
Govt Chief Whip
2
Names given; areas of responsibility not given. Declined to provide career history and personal details since they are confidential between employer and employee.
Leader of the House
2
Names, age, educational qualifications and brief career history supplied.
Wales Office
2
Both policy advisers. Declined to provide career history and personal details since they are confidential between employer and employee.
DoH
2
Areas of responsibility given as 1 policy adviser and 1 political and presentational adviser; CVs provided with agreement of advisers
HM Treasury
8
List of names, job titles and areas of responsibility given. Policy advice and media relations.
Total
76
 


 

Letter of reply from Sir Richard Wilson, KCB 1 August 2000

Thank you for your letters of 19 and 20 July seeking information on the age and career history of Special Advisers along with a description of their individual work responsibilities.

All special advisers are appointed under terms and conditions set out in the Model Contract for Special Advisers. As requested, I enclose a list of the special advisers working in No 1 and the Cabinet Office together with a breakdown of their individual responsibilities. Sir Richard does not feel however that he can agree to provide information relating to the educational qualifications and career history of the individuals concerned. This is personal information between the employer and employee which we would not supply about permanent civil servants, and it is not for departments to make public information that has been given in confidence.

Sir Richard Wilson, KCB
1 August 2000


SPECIAL ADVISERS IN No 10 AND THE CABINET OFFICE AND THEIR RESPONSIBILITIES


No 10
Jonathan Powell Chief of Staff
Kate GarveyDiary
Anji HunterPresentation and Planning
Fiona MillarAssistant to Mrs Blair
  
Policy Unit
David Milliband Head of Policy Unit
Andrew Adonis Education, Freedom of Information,
Robert HillHealth, Social Services, Drugs
(shared with Liz Lloyd)
Peter HymanCommunications Co-ordinator
Roger LiddleEurope, Defence
Liz LloydHome Affairs, MAFF, Drugs
(shared with Robert Hill)
Geoff MulganInequality, Social Exclusion, Welfare to Work, Family, Urban Policy, Voluntary Sector
Geoffrey Norris Trade and Industry, Employment, Planning, Food Safety
James Purnell DCMS, Internet, Modernising Government
Ed RichardsStrategy Development
Derek ScottEconomy (including EMU)
Carey Oppenheim Welfare Issues, Child Policy, The Elderly, Women
  
No 10 Press Office
Alastair Campbell
Hilary Coffman
Phil Murphy
Carl Sobhan
Chris McShane
  
Strategic Communications Unit
Phil Bassett
David Bradshaw
  
Research and Information Unit
Bill Bush
Katherine Rimmer
Bob Bartram
  
Cabinet Office
Nigel WarnerDrugs, GMOs, Regulation, Rural Issues
Andrew Lappin Modernising Government, Civil Service, IT, Social Exclusion, Equality
Keith Hellawell UK Anti-Drugs Co-ordinator
Mike TraceDeputy UK Anti-Drugs Co-ordinator


Annex 2

Letter from Sir Richard Wilson, KCB of 4 August 2000 about the role of special advisers

I have seen your letter of 17 July to Jonathan Powell, inviting him to give evidence as part of the Committee's inquiry into the role of special advisers. Mr Powell has consulted the Prime Minister who has asked me to reply to you.

The convention is that civil servants account to Parliament on behalf of their Ministers. They have no formal accountability of their own to Parliament (unless they are Accounting Officers) and they do not give evidence on their own behalf. The Government does not therefore consider it appropriate for Jonathan Powell or any other special adviser to give evidence essentially about themselves and their own role, particularly alongside Lord Blackwell who as former civil servant will only be able to provide evidence in a private and personal capacity.

The Prime Minister has therefore asked me to say that he would wish me to give evidence instead of Jonathan Powell and any other serving special adviser whom the Committee may wish to invite, and to answer any questions which the Committee may have on the government's policy on the role of special advisers including the exceptional status of Jonathan Powell and Alastair Campbell. You may wish to add this to the items for the hearing arranged for 1 November which already includes special adviser issues. If there are specific additional areas in relation to special advisers which the Committee would like to address, it would of course be helpful if you could give me a broad indication beforehand of what they are.

Sir Richard Wilson, KCB
4 August 2000


Annex 3

Letter from Tony Wright, MP to Madam Speaker of 29 June

I write to bring to your attention an issue that the Select Committee has today resolved to investigate.

The Committee had already decided to inquire into the role of special advisers. It has now resolved to add an examination of Short Money to this inquiry, believing that this fits naturally into the general issue of public resources for adviser support to parties (whether in government or opposition). Our evidence session with Lord Neill helped to persuade the Committee of this linkage.

The Committee has therefore taken the view that this matter falls properly within its terms of reference, but felt that it would be appropriate to inform you of its decision.

Tony Wright, MP
29 June 2000


Letter from Madam Speaker to Tony Wright, MP of 5 July 2000

Thank you for your letter of 28 June about the decision of your committee to add investigation of Short Money to the proposed inquiry into the role of special advisers.

I am grateful to you for letting me know what has been decided. It is for committees to interpret their own orders of reference, subject only to further direction from the House. Thus, though I am of course interested in the decision, I think the initiative properly lies with your committee and not with me.

Madam Speaker
5 July 2000


PROCEEDINGS OF THE COMMITTEE RELATING TO THE REPORT

WEDNESDAY 28 FEBRUARY 2001

Members present:

Tony Wright, in the Chair

Mr David LepperMr Andrew Tyrie
Mr Michael TrendMr Brian White
Mr Neil Turner

The Committee deliberated.

****

Draft Report (Special Advisers: Boon or Bane?), proposed by the Chairman, brought up and read.

Ordered, That the draft Report be read a second time, paragraph by paragraph.

A paragraph- (Mr Michael Trend) - brought up and read, as follows:

"Despite much excellent work which has gone into this report, the Committee's inquiry into special advisers has been fundamentally compromised. The terms of reference of the Committee set out in Standing Order No 146 are 'to consider matters relating to the quality and standards of administration provided by Civil Service departments, and other matters relating to the Civil Service'. While Short Money is a proper area of investigation by another House of Commons Select Committee, the Select Committee on Public Administration has clearly and mischievously operated outside its terms of reference in investigating Short Money. We can only conclude that this was done by those motivated by narrow party political considerations".- (Mr Michael Trend.)

Question put, That the paragraph be read a second time.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraphs 1 to 11 agreed to.

Paragraph 12 read as follows:

"Lord Neill reported that 'almost all witnesses made clear their view that special advisers were valuable components of the machinery of government'. This conclusion reflected those of a number of studies over more than thirty years and the evidence we received did nothing to contradict it. None of our witnesses dissented from this general view. A former adviser, William Plowden, explained their value: they can 'vicariously multiply Ministers' contacts with MPs, officials, outside interests and also with other Ministers, including the Prime Minister; evaluate proposals and advice coming up from officials; consult sources other than those favoured by officials; act as an informal sounding board for a Minister's ideas or anxieties'. Enthusiasts of this view argue that special advisers form a useful counterweight to what is sometimes perceived as civil service inertia, but even the FDA, the civil service trades union representing the grades most likely to feel threatened by advisers, were sanguine about their use. In their view the arrangement brought general benefits all round though there were 'occasional problems with individuals'. This is a useful reminder that. Whatever the benefits in principle. Much depends on the quality and contribution of individual advisers. The FDA also explained how the existence of advisers can help the smooth functioning of the civil service: 'Within the UK system, Ministers inevitably need certain tasks undertaking that, were they performed by civil servants, would take them across a political line. In practice the current system allows those functions to be undertaken by special advisers, thus preserving the impartiality of the civil service. Moreover, a special adviser performing their job effectively and reflecting the views of their Minister can assist greatly in the smooth running of the Department'. Nor did they think there was anything exceptional about the way ministers in the present Government used advisers, other than that 'Some of them had placed slightly more emphasis on the role of special advisers in certain circumstances'. They even agreed that the number per Minister might possibly be increased from two to three without resulting in a cabinet system. Lord Lipsey reported the alarm of one Permanent Secretary, on being told that his incoming Minister proposed to work without a special adviser. However, this general agreement on the value of advisers did not prevent concerns being expressed about some aspects of the present arrangements. We discuss these concerns shortly".

Amendments made.

Another Amendment proposed, in line 21, after "Department" to insert the words "although why 'party political' civil servants, as opposed to party officials outside the Civil Service are required for his task has never been satisfactorily explained". -(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph, as amended, agreed to.

Paragraphs 13 and 14 agreed to.

Paragraph 15 read, as follows:

"We believe that much of the criticism of the use of special advisers, concentrating as it does on their numbers, is misdirected. If they really improve the machinery of government, then it is clearly sensible to have as many as the system requires. If they are ineffective, or even damaging, then it is sensible to cull them. The key question is not how many there are, but what contribution they make to effective government. When this is established, the further questions concern the framework and rules within which they operate. Although we accept the general evidence on the value of advisers, it would be useful to have more particular evidence. Unfortunately, because of the limitations on the information available, it has not been possible for us to explore this as fully as we would have liked".

An Amendment proposed, in line 1, to leave out from beginning to word "although" in line 6 and insert the words "the main criticism of the current crop of advisers centres first on the highly party political nature of much of their activity and secondly on the danger that the sheer number of advisers so close to the most senior ministers in the government could compromise the traditional advisory role played by the neutral civil service". -(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Another Amendment proposed, in line 8 to leave out from the word "evidence" to the end of the paragraph and insert the words "unfortunately, because of the limited amount of information provided by the Executive, and its refusal to allow special advisers to give evidence, it has not been possible for us to explore the role of special advisers as fully as we would have liked". -(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Paragraph 16 agreed to.

Paragraph 17 read.

Question put, that the paragraph stand part of the Report.

The Committee divided.


Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Paragraphs 18 to 21 agreed to.

Paragraph 22 read, as follows:

"It may be that the work of advisers has changed somewhat since it was undertaken by the former advisers we interviewed (Dr Plowden, Lord Blackwell and Lord Lipsey). Certainly the FDA thought it had, particularly in respect of the 'work done by Alastair Campbell and his team'. However, our inability to take evidence from current advisers made it difficult for us to assess to what extent the role may have changed. This has made our work more difficult and less complete than it should have been. In the case of No 10 Downing Street, where the greatest number of advisers is to be found, the fact that the Committee's invitation both to the Prime Minister and to the Chief of Staff have been declined make it especially difficult for us to form a view about the role of advisers at the centre of government.

Amendment proposed, in linr 1, to leave out the words "It may be that the work of advisers has changed somewhat" and insert the words "The work of advisers has changed". -(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Paragraphs 23 to 29 agreed to.

Paragraph 30 read, as follows:

"We are not convinced that a formal cap on the total number of advisers, as recommended by the Neill Committee, is the most sensible way to proceed. We believe that a better approach would be for Parliament to vote a sum of money for special advisers (as it does for Short Money). It would then be for a government to decide how it wanted to make best use of this allocation (for example between No 10 and the Departments, between particular Departments, and between policy advisers and political advisers). The present rules do not apply at all to No 10. Our approach would achieve the objective of limitation while allowing more flexibility in the deployment of special advisers and securing more accountability to Parliament. We therefore recommend that the limitation of special advisers should be governed by the sum voted by Parliament for this purpose".

Amendment proposed, in line 2, after the word "is" to insert the word "necessarily".-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Another Amendment proposed, in line 3, to leave out from the word "advisers" to the second word "It" in line 4.-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Another Amendment proposed, in line 9, to leave out from the word "recommend" to the end of the paragraph and insert the words "consideration should be given to limiting the number of special advisers by the sum voted by Parliament for this purpose".-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Another Amendment proposed, in line 9, to leave out the word "number" and insert the word "limitation".-(The Chairman.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Paragraph, as amended, agreed to.

Paragraphs 31 to 33 agreed to.

Paragraph 34 read, as follows:

"Moreover, it is not always possible to distinguish between political and policy advisers. Although evidence suggests that where two advisers are in post there is a tendency to use one for political and the other for policy advice, as Dr Clarke indicated, when we asked each Department whether this was so the replies suggested that it is not invariable practice. Professor King agreed that there was 'overlap between the roles of providing policy and political advice'. Although the distinction between political and policy advisers is clearly a useful one, in practice there are policy-skilled political advisers and politically-informed policy advisers. It is for the government of the day, and for individual Ministers, to decide what particular mix of skills they require. Our recommendation (paragraph 53) would better enable this to be achieved".

Amendment proposed, in 9, to leave out from the word "require" to the end of the paragraph.-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Paragraphs 35 to 39 agreed to.

Paragraph 40 read, as follows:

"Special advisers assist Ministers at public expense. Opposition parties represented in the House of Commons receive financial assistance for the conduct of their parliamentary business. This money is known as 'Short Money' after the Leader of the House who introduced it. A connection between special advisers and Short Money was drawn first by Lord Neill, who said 'one of the things I had been thinking about myself was whether you could have a type of Short Money scheme for special advisers'. Lord Lipsey offered a proposal: ' There is money for the Opposition, Short Money... what I think is uncomfortable about the present situation is that special advisers, and here I really refer to the political breed of special advisers, are paid just like they were any other civil servant out of the same pocket without any discrimination. What I would like to see is, as it were, a vote of Short Money for Government where it is not very much money but it would be subject to proper parliamentary control and scrutiny and would send a signal to people that these people are something really quite different from the normal Civil Service'. We decided to investigate further the suggested analogy between expenditure on Short Money and special advisers, the cost of each now being broadly equivalent since the Government's substantial increase in Short Money funding for opposition parties which the House agreed in May 1999. As a matter of courtesy, since the matter affects the House, we wrote to the Speaker, and the correspondence is printed as Annex 3 to the Minutes of Evidence".

Amendment proposed, in line 14, at the end to add the words "notwithstanding the fact that consideration of Short Money is clearly outwith the terms of reference of our Committee, which are set out in Standing Order 146 and which reads "to consider matters relating to the quality and standards of administration provided by Civil Service Departments, and other matters relating to the Civil Service.""-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Paragraph 41 agreed to.

Paragraph 42 read, as follows:

"The representatives of those parties who gave us evidence on 15th November did not see a parallel between Short Money and special advisers. Ben Williams, for the Liberal Democrats said: 'I am not convinced that there is a parallel between the increase in the number of special advisers and the funding available to the parties through Short Money'. Margaret McDonagh, for the Labour Party, said: 'It is not something that we have debated but I support the position of both special advisers and the allocation of Short Money to opposition parties. However, I do not think they are in any way linked. Special advisers are there to give political advice to Cabinet Ministers'. David Prior MP, for the Conservatives, specifically denying the suggestion that special advisers and Short Money could be equated, said: 'The purpose of Short Money is to enable the opposition party to try and level the playing field against the government so that we have some real effort to hold them to account, given the tremendous resources that they have with press officers and the like' and 'Short Money ... is nothing to do with special advisers. Special advisers are in addition to that."

Amendment proposed, in line 2, after the word "adviser" to insert the words "all three specifically denied that special advisers and Short Money could be equated".-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Another Amendment proposed, line 9, to leave out from the word "Conservatives" to the word "said" in line 10.-(Mr Andrew Tyrie).

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Paragraph 43 agreed to.

Paragraph 44 read, as follows:

"The payment of Short Money is governed by Resolution of the House. The latest Resolution, passed in May 1999, increased the overall amount payable to £4,863,000, an increase of 270 per cent and altered the payment basis. Whereas previously it had been necessary for the parties to put in a claim, payment is now made by the Fees Office provided that within nine months after the end of the financial year a certificate from the firm of accountants appointed by the party is received stating that 'the financial assistance received and claimed was expended on expenses incurred exclusively in connection with the party's parliamentary business'. If no certificate were received, no more money would be paid. The National Audit Office scrutinises all certificates as part of its annual audit of the Members' Salaries etc Vote Appropriation Account, but does not take its audit beyond this. The Clerk of the House and the Head of the Fees Office made it clear that they were bound by the terms of the Resolution of the House and could not go beyond it".

Amendment proposed, in line 2, to leave out the words "to £4,863,000, an increase of 270 per cent" and insert the words "by 270 per cent (the cost in 1999-2000 was £4,863,000 with a maximum for 2000-2001 of £5,012,000)". -(The Chairman.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Paragraph, as amended, agreed to.

Paragraphs 45 to 49 agreed to.

Paragraph 50 brought up and read, as follows:

"We suggested to the political parties that it might be appropriate to publish the accounts of how they spent Short Money. All agreed in principle. We note that the Official Opposition and its auditors were unable to give a categorical assurance that its Short Money funding was used exclusively for parliamentary business. We have further concerns that, after an approach by the Party to the Fees Office, a description of parliamentary business was arrived at, without consideration by the House, which seems to allow more latitude in how this money is spent. In particular we are not clear how 'communicating alternative policies to those of the Government of the day' (which is permitted under the expanded description) is different from 'political campaigning' (which is not)".

Amendment proposed, in line 2, to leave out from the word "principle" to the end of line 6.-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Paragraph 51 agreed to.

Motion made, to leave out paragraphs 52 and 53.-(Mr Andrew Tyrie.)

Question put, That the paragraphs stand part of the Report.

The Committee divided.


Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Motion made, to leave out paragraphs 54 and 55.-(Mr Andrew Tyrie.)

Question put, That the paragraphs stand part of the Report.

The Committee divided.


Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Paragraphs 56 to 65 agreed to.

Paragraph 66 read, as follows:

"We share the reservations about special advisers exercising executive powers. It was meant to be a helpful development (just as the shift of the Chief Press Secretary from being a civil servant to being a special adviser could be seen as serving the cause of honesty) but it has unhelpful implications for established relations within government. The role of special advisers should add to the effectiveness of these relations, not compromise them. Not only should the experiment not be extended but the existing arrangements should be reviewed".

An Amendment made.

Another Amendment proposed, in line 6, to leave out the word "reviewed" and insert the word "abandoned". - (Mr Andrew Tyrie)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph, as amended, agreed to.

Paragraphs 67 to 74 agreed to.

Paragraph 75 read, as follows:

"In Session 1997-98 we produced a Report on 'The Work of the Government Information and Communication Service (GICS)'. In that report we examined concerns that had been expressed as to whether the Prime Minister's Chief Press Secretary had been using his office to forward the interests of the Government in a way inappropriate to someone paid from public funds as a special adviser. We found no evidence to substantiate this at that time and nor was any submitted when we took further evidence from the service in May last year. In our 1997-98 Report we said 'it is difficult to avoid some advantage naturally accruing to the party in power from the use of public money to present the Government's policies in their best light'. That remains the intractable fact. We note that the FDA told us in the course of this inquiry that it was not a completely new concept having a special adviser in the role of Chief Press Secretary and that it was not necessarily inappropriate to do so. Whether it is wise for a government to fill the post in this way is another matter. We welcomed then and welcome now Sir Richard's repeated assurances that he remained vigilant to ensure that advisers do not overstep the mark, but we note that the GICS handbook says little or nothing about the Service's relation to advisers and recommend that the next edition should set out the relationship in more detail. Tensions in this area are inevitable, which is why continuing vigilance is appropriate in policing the boundary line".

An Amendment proposed, in line 6, after the word "year" to insert the words "Since then, Alastair Campbell has been reprimanded for ignoring Sir Richard's guidelines, given to this Committee in oral evidence on the limits to his party political activity". -(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

An Amendment made.

Another Amendment proposed, in line 9, after the word "fact" to insert the words "particularly with respect to parliamentary activity, the imbalance which Short Money was designed largely to address when it was introduced". -(Mr Andrew Tyrie)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph, as amended, agreed to.

Paragraphs 76 to 79 agreed to.

Paragraph 80 read, as follows:

"The distinction between an adviser on duty and an adviser off-duty is a fine one to draw, especially in the context of a 24-hour news culture. It is hard to see how an individual could erect sufficient Chinese walls between what he or she knows and does through current employment and through other means. Mr Campbell's intention to resign his employment as soon as a general election is called to work full time for the Labour Party, then return to his post in the event of a Labour victory, is one example of the difficulties. The question is whether there could be a better system. We asked Lord Neill whether it might be possible to distinguish between the work done by advisers for the government and work done for the party and pay them pro rata. He said that he did not know what each of the advisers in post during his inquiry actually did, not having seen their individual contracts, so he did not know how much party work they did but he thought that, for practical reasons, such a scheme would be hard to implement. He said 'I would need to see more evidence as to how it could be done, how it would be workable, how you could partition a day of a special adviser, so much was party political and so much was not. The telephone would ring: "Am I allowed to take another call today? Is that a party political call?" I am not making a joke of it, but it would be incredibly difficult to draw a line, a division such as you suggest'. Such difficulties are inescapable. They would, of course, disappear if advisers were paid out of party funds, but this would be at odds with our view that policy and political advice to Ministers is a proper activity that is appropriately funded by the public purse. Moreover, other difficulties would arise. Tensions and boundary disputes are inevitable, which is why proper policing and codes of conduct are important".

Amendment proposed, in line 1, to leave out the words "a fine one to draw" and insert the words "little short of absurd".-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Motion made, to leave out paragraph 81 and insert the following paragraph

"Special advisers can make a positive contribution to good government. They can also prejudice the neutrality of the civil service and provide an unacceptable party political advantage to the governing party. Both the number of advisers and the breadth of their party political and other activity are an increasing cause for concern. Lord Neill's recommendation for a Code of Conduct is an important start. The Code of Conduct would enable clear 'rules of engagement' to be provided where advisers are assuming functions previously performed by civil servants. Special advisers' contracts should be consonant with the Code of Conduct and, where they deviate from the model contract that is already published, put into the public domain. The responsibility for enforcing the contract should lie with Permanent Secretaries answerable to Select Committees in Parliament. Special advisers who are identified as doing a considerable amount of highly party political work should be paid from party funds and not the taxpayer. There will always be difficulties of definition and in policing the line but the widespread perception that over the last decade advisers have done an increasing amount of highly partisan work at tax payers' expense is not only constitutionally questionable but unacceptable to a wider public. The doubling of advisers in Whitehall since 1997 and, in particular, the tripling of the number of advisers at the heart of the government in 10 Downing Street, has made action all the more necessary. This is what the recommendations of this Report are intended to achieve". -(Mr Andrew Tyrie.)

Question put, That the paragraph stand part of the Report.

The Committee divided.


Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Motion made and Question put, That the report, as amended, be the Fourth Report of the Committee to the House.

The Committee divided.

 
Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Ordered, That the Chairman do make the Report to the House.

Ordered, That the provisions of Standing Order No 134 (Select Committees (Reports)) be applied to the Report.

Several Papers were ordered to be appended to the Report.

Several memoranda were ordered to be reported to the House.


11  HC (1999-2000) 238 Q 1 Back

12  Cm 3638 (1968) Vol I, p 45 Back

13  HC Deb 22 January, col 467Back
14  Vacher's Parliamentary Companion December 2000 Back

15  Appendix 1; see also Annex 1 Back

16  Unconventional Civil Servants (2000) (not printed) Back

17  Cm 4557 Back

18   Cm 4557, para 6.26 Back

19  Fulton Report 1968, Report from the Expenditure Committee 1976, Report from Treasury and Civil Service Committee 1985-6, Report from Treasury Committee 1994 Back

20  HC (1999-2000) 727 p11 Back

21  HC (1999-2000) 238 Q 486 Back

22  HC (1999-2000) 238 Ev p 105  Back

23  HC (1999-2000) 238 Q 486 Back

24  HC (1999-2000) 238 Ev p 105 Back

25  HC (1999-2000) 727 Q 34 Back

26  HC (1999-2000) 238 Q 196 Back

27  The Powers behind the Prime Minister by Dennis Kavanagh and Anthony Seldon 1999 Back

28  Appendix 1 Back

29  HC (1999-2000) 238 Q 191 Back

30  HC (1999-2000) 727-1 Q 22 Back

31  HC (1999-2000) 238 Q 546 Back

32  Quoted in Cmnd 4557 para 6.29 Back

33  HC (1999-2000) 727 Q1 Back

34  Ibid Back

35  HC (1999-2000) 727 Q27 Back

36  Eg HC Deb (1999-2000) 11 Nov c 825Back

37  HC (1999-2000) 727 Q 1 Back

38  Appendix 2 Back

39  Annex 2 Back

40  HC (1999-2000) 238 Q 403 Back

41  HC (1999-2000) 238 Q 478 Back

42  HC 92-II p xlii-xliii Back

43  HC (1999-2000) 727 p 12 Back

44  HC (1999-2000) 238 p 106 Back

45  HC (1999-2000) 727 Q5 Back

46  HC (1999-2000) 727 p 12 Back

47  HC (1999-2000) 727 Q 63 Back

48  HC (1999-2000) 238 Q159 Back

49  HC (1999-2000) 238 Q 159 Back

50  Sixth Report; Reinforcing Standards Back

51  HC (1999-2000) 727 Q 7 Back

52  HC (1999-2000) 727 Q 1 Back

53  HC (1999-2000) 821 Q 12 Back

54  Ibid Back

55  HC (2000-2001) 94 Q 967 Back

56  HC (1999-2000) 727 p 12 Back

57  HC (1999-2000) 94 Q 979 Back

58  Annex1 Back

59  HC 238-1 Q135 Back

60  HC (1999-2000) 238 Q 455 Back

61  The Powers behind the Prime Minister, 1999 Back

62  For most of the information in this paragraph we are indebted to House of Commons Library Research Paper 00/42. Back

63  HC (1999-2000) 238 Q 213 Back

64  HC (1999-2000) 821 Q 12 Back

65  HC (1999-2000) 238 p 20 and Appendix 1 Back

66  HC (1999-2000) 727 Q 58 Back

67  HC (1999-2000) 238 Q 11 Back

68  HC (1999-2000) 727 Q 27 Back

69  HC (1999-200) 238 Q 731 Back

70  Appropriation Accounts 1999-2000 HC 25-XVIII p 24 Back

71  Figures supplied to House of Commons Library by house of Commons Fees Office Back

72  HC (1999-2000) 238 p 120 Back

73  HC (1999-2000) 238 Q 502 Back

74  HC (1999-2000) 238 Q 583 Back

75  HC (1999-2000) 238 p 120 Back

76  HC (1999-2000) 238 Q 504 Back

77  HC (1999-2000 238 Q 726-8 Back

78  HC (1999-2000) 238 p 126 Back

79  HC (1999-2000) 238 Q 561-3 Back

80  HC (1999-2000) 238 Q 559 Back

81  HC (1999-2000) 238 Q 596 Back

82  HC (1999-2000) 238 Q 597 Back

83  HC (1999-2000) 238 Q 503 Back

84  HC (1999-2000 238 Q 547 Back

85  HC (1999-2000) 238 Q 697)  Back

86  HC (1999-2000) 238 Q 671 Back

87  HC (1999-2000) Q 580 Back

88  HC (1999-2000) 238 Q 540 Back

89  HC (1999-2000) Q 238 Q 455 Back

90  HC (1999-2000) 238 Q 455 Back

91  HC (1999-2000) 727 Q 49 Back

92  HC (1999-2000) 238 Q 213 Back

93  HC (1999-2000) 721 Q 35 Back

94  Cm 4557 Q 6.37 Back

95  Ibid para 6.22 Back

96  Ibid para 6.34 Back

97  HC (1999-2000) 727 Q 6 Back

98  'Civil Service Change in Britain' delivered to Political Studies Association Conference April 2000 Back

99  HC (1999-2000) 238 Q 136 Back

100  HC (1999-2000) 238 p 20 Back

101  HC (1999-2000) 238 Q 418 Back

102  HC (1999-2000) 238 Q 419 Back

103  Appendix 1 Back

104  HC (1999-2000) 727 Q 11 Back

105  HC (1999-2000) 238 Q 473 Back

106  HC (1999-2000) 238 Q 484 Back

107  HC (1999-2000) 727 Q 36 Back

108  HC (1999-2000) 238 Q 473 Back

109  HC (1999-2000) 238 Q 473 Back

110  Ibid Back

111  HC (1999-2000) 238 Q 483 Back

112  HC (1999-2000) 727 Q 40 Back

113  HC (1999-2000) 238 Q485 Back

114  HC (1999-2000) 94 Q 858 Back

115  See Public Service December 1999 Back

116  HC (1999-2000) 238 Q431 Back

117  HC (1999-2000) 238 Q 217 Back

118  Cm 4557 para 6.32 Back

119  Cm 4557 para 6.60 Back

120  Ibid para 6.4 Back

121  HC (1997-98) 770 (Fourth Report) Back

122  HC (1999-2000) 238 Q 473 Back

123  HC (1999-2000) 238 Q 473 Back

124  HC (1999-2000) 511 Q 44 Back

125  Cm 4817 p 11 Back

126  Model Contract Schedule 1 part 1 Back

127  HC (1999-2000) 727 Q 1 Back

128  HC (1999-2000) 238 Q 434 Back

129  HC (1999-2000) 238 Q 295 Back