To mark its 25th anniversary, the independent, not-for-profit Whitehall & Industry Group (WIG) publishes its research ‘Closing the Gap’ which explores for the first time the changing nature of communication between business and government over the past 25 years and provides recommendations for improvement.
At the launch of the publication, Sir Gus O’Donnell, Cabinet Secretary, commented: “This is a very useful piece of research into a subject that has huge impact but which has seen little external examination. The past 12 months can have left few in doubt of the paramount importance of good communication between business and government and I’m delighted WIG’s report indicates increasing awareness of the importance of this on all sides."
Sir John Parker, Chairman, National Grid and Anglo American commented: "As business and government work together more closely, it is crucial that they know how to have a constructive dialogue. In terms of offering useful insights for business on the importance of communicating with government and how to make that communication more effective, I would say 'Closing the Gap' is essential reading."
The research focused primarily on communication between central government/Whitehall and large business. It drew on forty interviews with past and present chief executives, senior civil servants, politicians, corporate affairs professionals, trade associations and Whitehall watchers.
Key recommendations include:
- Business and government to work more closely at an early stage in negotiating the UK’s position on policy decisions taken outside Whitehall, such as the EU, G20 and G8;
- Government to back up policy announcements with detailed delivery plans;
- Business to provide clear evidence to support its case in discussions with government, particularly where government lacks technical expertise;
- Government to broker more early stage discussions with business and NGOs so that all sides have a chance to understand the other’s perspective early in the policy-making process before setting out policy in formal consultation; government to ensure engagement with business is beyond the ‘usual suspects’;
- Business to recognise that it takes time to secure a policy change as the parliamentary process and other democratic constraints mean the decision making process can be slow;
- Government to understand the impact of policy on business by civil servants ‘getting out’ more and talking to business.
‘Closing the Gap’ provides a review of the private/public interface; a snapshot of the communications status quo and emphasises the importance of good dialogue in the future.
Key findings include:
- The divisions between government and business have lessened, driven by structural changes such as privatisations & government outsourcing. Globalisation of business and politics, Freedom of Information legislation and the internet have all impacted how business and government communicate.
- Business used to avoid government. Today, its relationship with government in an advisory, regulatory and commercial capacity together with pressure from employees, investors, customers and NGOs to demonstrate good corporate citizenship credentials have made constructive dialogue with government a business imperative.
- Both business and government are better informed in their dealings with each other, with considerably more trust on both sides.
- There is widespread recognition that government can’t deliver all of its objectives on its own. A joint approach is seen as crucial for tackling issues such as climate change and the recession, with business and government working jointly on an increasing number of advisory groups.
- Access to government is perceived to be much more open than it was: it’s no longer who you know but what you know. The internet has made government hugely more accessible.
- Early discussions about policy between business and government are seen as crucial to maximise the effectiveness of the formal consultation on policy that follows. There’s a need to foster better mutual understanding of policy objectives to avoid subsequent communication breakdowns.
- Many more careers take in both the public and private sectors but more could be done to help prepare individuals for the transition to the public sector and to support them.
- Mark Gibson, Chief Executive of The Whitehall & Industry Group, said: "The Whitehall & Industry Group was established with a charitable purpose of building understanding and co-operation between government and business. 'Closing the Gap' addresses the key question of how effective is the dialogue between business and government and how can it be further improved? There is still too much myth and avoidable ignorance. I hope the report provides useful learning to overcome remaining barriers to finding common ground for the common good."
For further information, copies of the executive summary, full report or interview requests please contact: Sue Youngman, Compass Rose & Co on 07768 283 162.
NOTES TO EDITORS
1. About WIG
The Whitehall & Industry Group (WIG) is an independent, neutral, not-for-profit organisation established 25 years ago. It has a charitable purpose to build understanding and co-operation between government and business, in order to provide better-informed policy, forge effective cross-sector partnerships to deliver public services and draw on each other’s expertise to develop better leadership for the greater public good. WIG achieves these outcomes through a comprehensive programme of cross-sector placements, leadership training and events promoting dialogue and consultation between business and government, sharing of best practice and networking. WIG has built up a high calibre membership of leading business, central government and wider public sector organisations.
2. Research Terms of Reference
To mark its 25th anniversary, WIG embarked on this research project to examine how communication between business and government had changed since 1984 and to consider what challenges remain.
The primary source for the research was a series of structured interviews with around 40 people, from both the public and private sectors, conducted between May and September 2009. The interviewees included past and present ministers, civil servants, business leaders, local authority representatives, academics, business organisation and trade association representatives (see note 4 below).
The research focused primarily on communication between central government/Whitehall and large business.
The research was supported by a questionnaire survey of an additional 43 private sector organisations. Participants were asked whether there had been a significant change in how, why and when the public and private sectors talk to each other, and how communication might be improved.
The research was guided by the Editorial Panel listed below. The report is however an independent assessment by WIG.
Panel Chair: Vicky Pryce CB, Director General, Economics, BIS & Joint Head, UK Government Economic Service, Department for Business, Innovation & Skills Mark Gibson CB, Chief Executive, The Whitehall & Industry Group (formerly Director General, Enterprise and Business Group, Department for Business, Enterprise and Regulatory Reform) Howell James CBE, Director of Corporate Affairs, Barclays plc (formerly Permanent Secretary, Government Communications, Cabinet Office 2004 – 2008) Patrick Kerr, Director of Corporate Communications, Reed Elsevier (and WIG Trustee) Peter Riddell, Chief Political Commentator, The Times and Senior Fellow, Institute for Government (unable to attend meetings but offered written comments)Richard Thomas CBE, Chairman, Administrative Justice and Tribunals Council (WIG Trustee and formerly Information Commissioner 2002 - 2009)
3. RESEARCH PARTICIPANTS
The Whitehall & Industry Group would like to thank the following for agreeing to be interviewed for this research:
Stephen Alambritis, Head of Public Affairs, Federation of Small Businesses. Neil Bentley, Director, Business Environment, CBI.John Cridland, Deputy Director General, CBI. Philip Cullum, Deputy Chief Executive, Consumer Focus. Tom Delay, Chief Executive, Carbon Trust. Lord Davies of Abersoch, Minister of State for Trade, Investment, and Business, Department for Business, Innovation & Skills. Yasmin Diamond, Director of Communications, Home Office. Mark Elborne, President & CEO, GE UK. Guy Esnouf, Head of PR and Public Affairs, E.ON UK. Margaret Fay OBE, Chairman, One NorthEast. Mark Gibson CB, Chief Executive, The Whitehall & Industry Group, formerly Director General, Enterprise and Business Group, Department for Business, Enterprise and Regulatory Reform. Tony Ginty, Head of Public Affairs, Marks & Spencer plc. David Green OBE, Chief Executive, UK Business Council for Sustainable Energy. Russell Grossman, Director of Communications, Department for Business, Innovation & Skills. The Rt Hon The Lord Heseltine CH. Professor Peter Hennessy, Attlee Professor of Contemporary British History, Queen Mary, University of London. Rt Hon Patricia Hewitt, MP for Leicester West. Stephen Hughes, Chief Executive, Birmingham City Council. Dame Deidre Hutton DBE, Chair of the Civil Aviation Authority (formerly Chair, Food Standards Agency). Howell James CBE, Director of Corporate Affairs, Barclays plc (formerly Permanent Secretary, Government Communications, Cabinet Office 2004 – 2008). Patrick Kerr, Director of Corporate Communications, Reed Elsevier (and WIG Trustee). Ray King, Chief Executive, Bupa. Barry Neville, Director of Public Affairs and European Policy, Centrica plc. Geoffrey Norris, Special Adviser to Lord Mandelson, Department for Business, Innovation & Skills. Tim O’Sullivan, Director of Public Affairs, BT Group. Paul Pindar, Chief Executive, Capita Group plc. Stuart Popham, Senior Partner, Clifford Chance. Vicky Pryce CB, Director General, Economics, BIS & Joint Head, UK Government Economic Service, Department for Business, Innovation & Skills. Peter Riddell, Chief Political Commentator, The Times and Senior Fellow, Institute for Government. Ben Rhodes, Strategic Support to Director General, Energy Markets and Infrastructure, Department of Energy and Climate Change. John Sacher CBE, Founding Chairman of The Whitehall & Industry Group. Peter Schofield, Director, Enterprise & Growth Unit, HM Treasury. Matt Tee, Permanent Secretary, Government Communications, Cabinet Office. Martin Temple CBE, Chairman, EEF. Richard Thomas CBE, Chairman, Administrative Justice and Tribunals Council (WIG Trustee and formerly Information Commissioner 2002 - 2009). Simon Virley, Acting Director General, Energy Markets and Infrastructure, Department of Energy and Climate Change. Peter Wilson-Smith, Quiller Consultants. Sir Robin Young, Chairman, Circle Anglia (formerly Permanent Secretary, DCMS 1998-2001 and DTI 2001-05). Erica Zimmer, External Relations Advisor to the Chief Executive, J Sainsbury plc
