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                  <text>The early 21st century saw the Home Office's traditional role in the preparation of Letters Patent and Royal Warrants transferred elsewhere, first to the Lord Chancellor and then to the Secretary of State for Constitutional Affairs/Justice.</text>
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              <text>&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;HOME SECRETARY: RESPONSIBILITY FOR WARRANTS&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;The Home Secretary signs warrants under the Interception of Communications Act 1985, the Security Service Act 1989, and the Intelligence Services Act 1994. Under these statutes, he must sign the warrants personally, except in circumstances of extreme emergency, when they can be signed by an official (not a junior Minister) on his behalf but with his specific authorisation (specific provisions in each statute eg S6 of The Intelligence Services Act). In such cases, the original warrant must be confirmed by a permanent warrant signed by the Secretary of State within two days.&lt;/p&gt;
&lt;p&gt;In addition, the Home Secretary usually signs personally any public interest immunity certificates issued by the Home Office (but, in practice, these normally relate to national security). As a matter of law, Home Secretaries have generally been advised that there is some uncertainty whether the Courts would accept delegation by the Home Secretary in the case of important issues effecting the liberty of the subject.&lt;/p&gt;
&lt;p&gt;More generally, as a matter of policy, the Home Office has always taken a very strict view on matters affecting the liberty of a subject. Decisions of this kind have usually been taken at the highest level. Moreover, the national security area – including both the Security Service itself and the responsibility for interception of communications – has always been dealt with personally by the Home Secretary, rather than delegated to junior Ministers. This reflects the basic stand on individual liberty. But as long as the wider Cabinet sees the Home Secretary as dedicated, among the Ministerial team, is well placed to take decisions on individual warrants.&lt;/p&gt;
&lt;p&gt;It is worth noting, also, that in other departments with security responsibilities – notably the FCO – key decisions are taken, and documents signed, at Secretary of State level.&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;/p&gt;
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                <text>Minute for Tony Blair on the Home Secretary's role in signing investigatory warrants. </text>
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&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Home Office and Lord Chancellor’s Department&lt;br /&gt;Historical Background&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Home Office&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;The Home Office dates from 1782 when a new division of labour between the two Secretaries of State was made: one taking responsibility for home, the other for foreign affairs. A series of administrations with policy responsibility for domestic matters have developed within, and then split off from, the Home Office: for instance the Poor Law, one source of the DH and DSS.&lt;/p&gt;
&lt;p&gt;Much of the recognisable Home Office, however, dates from Peel’s incumbency, which anticipated a series of Victorian rationalisations of the public order aspects of its work – particularly the police and penal system.&lt;/p&gt;
&lt;p&gt;Two core Home Office responsibilities have developed only in the twentieth century: &lt;br /&gt;• Immigration and passport control. Increasingly prominent since the 1905 Alien Act. &lt;br /&gt;• Equality issues. Equal Opportunities Commission (now DfEE-based) was founded following the Equal Opportunities Act 1975; Commission for Racial Equality following the Race Relations Act 1976.&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Lord Chancellor’s Department&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;The office of Lord Chancellor is of ancient, initially ecclesiastical, origin. Under Edward III, the Chancellor’s court and household took on an independent existence from those of the King, and these developed into the Court of Chancery. Reform of the Court in the late nineteenth century (it was amalgamated with the High Court) limited the Lord Chancellor’s functions to ones involving the House of Lords as court and second chamber. The core of his permanent staff – a small secretariat before 1971 – dates from 1873.&lt;/p&gt;
&lt;p&gt;The modern Lord Chancellor’s Department, headquarters of the administration of justice, dates only from 1971, when the Courts Act brought the administration of what had been the assizes and the quarter sessions under its aegis.&lt;/p&gt;
&lt;p&gt;(The LCD’s responsibility for the Public Records Office is a legacy of the Chancellor’s ancient function as secretary to the King. Its responsibilities were formalised by the Public Records Act 1958.)&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Transfers between Home Office and Lord Chancellor’s Department&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;The traditional distinction was that the Home Office takes responsibility for administration of the criminal side of the law, the LCD for the civil side. The Home Office remains the home of the Criminal Law Revision Committee, for instance. The division has been breaking down in recent decades however: &lt;br /&gt;• responsibility for the administration of criminal legal aid passed from Home Office to the LCD in 1974 &lt;br /&gt;• responsibility for the administration and organisation of magistrates passed from the Home Office to the LCD in 1992.&lt;/p&gt;</text>
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              <text>&lt;p style="text-align:left;"&gt;Page 1&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;1. CREATION OF A NEW DEPARTMENT&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;IMMEDIATE ACTIONS&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;Appoint a Permanent Secretary, after consultation with the Senior Secretary of the Senior Appointments Select Committee (&lt;em&gt;contact: Senior Appointments, Cabinet Office&lt;/em&gt;). Arrange for a private secretary to be appointed.&lt;/li&gt;
&lt;li&gt;Appoint the Permanent Secretary as Accounting Officer and provide a copy of the Accounting Officer Memorandum (&lt;em&gt;contact: Treasury Officer of Accounts, HM Treasury&lt;/em&gt;).&lt;/li&gt;
&lt;li&gt;Arrange a Private Office suite and a private secretary for the new Minister. The suite should be equipped with a telephone, fax, computer, Agenda link and television. The new Minister’s Private Office should ideally be situated within the division bell area.&lt;/li&gt;
&lt;li&gt;Arrange for a Ministerial car and driver. Obtain a set of Ministerial boxes (&lt;em&gt;contact: Government Car and Dispatch Agency&lt;/em&gt;).&lt;/li&gt;
&lt;li&gt;Arrange security for the new Minister’s home (&lt;em&gt;contact: Home Office Protective Security Unit&lt;/em&gt;).&lt;/li&gt;
&lt;li&gt;Appoint a Press Officer to deal with the inevitable early media interest. A No.10 press notice will announce the change.&lt;/li&gt;
&lt;li&gt;Appoint a Personnel Director and a Principal Finance Officer (PFO), consulting, if necessary, with the Senior Secretary of the Senior Appointments Select Committee (&lt;em&gt;contact: Senior Appointments, Cabinet Office&lt;/em&gt;). They will ideally already have experience in their respective fields. They should set to work on the practical arrangements as early as possible and should be provided with appropriate support&lt;sup&gt;1&lt;/sup&gt;. (The two posts may, of course, be held by one officer).&lt;/li&gt;
&lt;li&gt;Contact the staff of the new department (who will probably be located in several other departments). This may well need to be done through their previous Permanent Secretaries in the first instance. Try to allay their inevitable concerns.&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;sup&gt;1&lt;/sup&gt; Also see early requirements list.&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;
&lt;!-- Divider --&gt;
&lt;div style="border-top:2px solid #000;margin:2em 0;"&gt;&lt;/div&gt;
&lt;p style="text-align:left;"&gt;Page 2&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;Commission briefing on all areas of activity (from staff in post at the time of the announcement) to brief Ministers. The briefing should flag up any current ‘hot topics’ or areas which require early decisions.&lt;/li&gt;
&lt;li&gt;Speak to someone who has recently been in this situation, who will provide advice on problems and solutions they found (&lt;em&gt;contact: Central Secretariat, Cabinet Office&lt;/em&gt;).&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;EARLY REQUIREMENTS&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;Consider the general “esprit de corps” of the new staff at a time of change, and place it high on the management agenda. Appoint someone to be in charge of the human element of the process;&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;Appoint an interim management board, and convene an immediate meeting. At (or before) the meeting the following tasks should be assigned:&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;An in-house legal advisor should be appointed, or else arrangements should be put in hand to ensure that legal advice will be available from the Treasury Solicitor. &lt;strong&gt;The Department’s Legal Advisor should then consider:&lt;/strong&gt;
&lt;ul&gt;
&lt;li&gt;‘Seals of State’ – locate existing ones, or have new ones created (&lt;em&gt;contact: Privy Council Office&lt;/em&gt;);&lt;/li&gt;
&lt;li&gt;Transfer of Functions Orders;&lt;/li&gt;
&lt;li&gt;Corporation sole; and&lt;/li&gt;
&lt;li&gt;any other legal and constitutional matters which can be identified.&lt;/li&gt;
&lt;/ul&gt;
&lt;/li&gt;
&lt;li&gt;The &lt;strong&gt;Personnel Director&lt;/strong&gt; should:&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;Infrastructure&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;appoint a team to manage the “infrastructure” changes – to manage the project of bringing all the practical aspects of the new department on stream, on schedule, and develop a priorities list (personnel information systems, accommodation, IT, facilities management, central services, furnishings etc.);&lt;/li&gt;
&lt;/ul&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;
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&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;appoint a professionally qualified Head of Procurement with a remit to consider which IT and non-IT support services should be provided in-house and which should be bought in. They should establish close links with the Office of Government Commerce;&lt;/li&gt;
&lt;li&gt;define the departmental remit/structure (possibly with a consultant);&lt;/li&gt;
&lt;li&gt;find a building for the department, if a new one is needed (&lt;em&gt;contact: Property Advisors on the Civil Estate (PACE)&lt;/em&gt;);&lt;/li&gt;
&lt;li&gt;find suitable accommodation and appoint staff for any junior Ministers as they are appointed;&lt;/li&gt;
&lt;li&gt;change building signage, local road signs, etc. to identify the new department;&lt;/li&gt;
&lt;li&gt;instruct security personnel to accept passes from any former department or else issue replacement passes for the new department;&lt;/li&gt;
&lt;li&gt;provide switchboard staff with staff lists and a list of the duties of all parts of the new department and ensure switchboard operators respond with the correct title of the new department;&lt;/li&gt;
&lt;li&gt;produce an accurate staff directory and telephone directory as soon as possible;&lt;/li&gt;
&lt;li&gt;identify and publish information on a common public enquiry point;&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;Staff Issues&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;undertake a ‘fact-finding’ exercise to locate all the staff who will form the new department. Put in place personnel management systems as quickly as possible and establish clear and effective lines of communications with exporting departments’ personnel divisions;&lt;/li&gt;
&lt;/ul&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;
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&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;write to all staff as soon as possible with full details of the formal arrangements and conditions of their transfer;&lt;/li&gt;
&lt;li&gt;consider the size and organisation of the senior structure within the new department. Consult with the Senior Civil Service Group about the senior structure, numbers and JESP ratings (&lt;em&gt;contact: Senior Appointments, Cabinet Office (OPS)&lt;/em&gt;);&lt;/li&gt;
&lt;li&gt;consider the pay and grading systems for the new department. If at all possible, consult widely on the structure of the new system, involving staff at all levels as much as possible. Reassure transferring staff that they will not “lose out” under any new pay and grading arrangements; issue guidance to staff transferring to the new department. Ensure that, as far as possible, the advice given to staff by exporting departments is consistent, particularly as regards any rights to return to former departments; and&lt;/li&gt;
&lt;li&gt;maintain regular communications with staff, by whatever means. The more that can be done to involve new staff in decisions about the future of the new department, the better.&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;The Principal Finance Officer (PFO) should:&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;speak to the Treasury Officer of Accounts about PES transfers;&lt;/li&gt;
&lt;li&gt;arrange Votes (detailed advice should be sought from the Treasury Officer of Accounts);&lt;/li&gt;
&lt;li&gt;establish a contact point or identify an expenditure team in the Treasury;&lt;/li&gt;
&lt;li&gt;organise banking arrangements for the new department, so that payments can be made and receipts banked;&lt;/li&gt;
&lt;li&gt;agree transition arrangements with departments relinquishing responsibility to enable a smooth transfer of functions and a clear understanding of relative responsibilities;&lt;/li&gt;
&lt;/ul&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;
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&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;initiate a project to implement financial management and control arrangements and accounting systems (all of which might be managed internally, delivered by a contractor or left, for the time being, with another department); and&lt;/li&gt;
&lt;li&gt;make arrangements for a payroll service for paying staff and Ministers.&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;GENERAL&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;The new Department should also:&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;set up a Parliamentary Branch, and arrange the mechanics for the handling of Parliamentary business;&lt;/li&gt;
&lt;li&gt;set up a correspondence branch (&lt;em&gt;contact Service First Team in Cabinet Office for advice on best practice in handling correspondence&lt;/em&gt;);&lt;/li&gt;
&lt;li&gt;seek the Minister’s views on the Departmental objectives and remit, against the background of the No.10 press notice announcing the machinery of government change. In addition, new Ministers may want a list of relevant visits to make and people to meet;&lt;/li&gt;
&lt;li&gt;develop a interim corporate identity (letterhead etc.), and set to work creating a permanent one. Arrange for an initial Internet home page on the CCTA Open Government Internet site; and&lt;/li&gt;
&lt;li&gt;identify any non-departmental public bodies (NDPBs) or other bodies which need to transfer to the new department. Consider any outstanding appointments to these bodies. The Chairmen of any NDPBs or other bodies transferring should be informed of the change in sponsoring department as soon as possible (&lt;em&gt;contact Central Secretariat, Cabinet Office&lt;/em&gt;).&lt;/li&gt;
&lt;/ul&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;
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&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;2. MERGER OF EXISTING DEPARTMENTS&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;The following action needs to be taken as quickly as possible to remove uncertainty and reassure staff that there is a management plan and that it is being implemented effectively.&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;IMMEDIATE ACTIONS&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;Communicate as soon as possible and as much as possible to the staff of both former departments. Try to have site meetings addressed by top managers on the day of an announcement. Also, pay special attention to those areas where functions are most affected by rationalisation, such as Private Offices, key finance posts and the Library.&lt;/li&gt;
&lt;li&gt;Establish a Transitional Management Board from top managers of both departments as soon as possible. The Board should meet within the first week.&lt;/li&gt;
&lt;li&gt;Draw up a draft aims and objectives for the new department. If at all possible, consult widely but swiftly, both internally and externally on these. This will help create a sense of ownership and involvement in an important new venture.&lt;/li&gt;
&lt;li&gt;Decide how posts will be filled. In a merger there are likely to be some staff without posts at the end of the merger. Decide the principles that will be used and say to all staff what these will be. Be clear and honest about what their options will be. If there is competition for posts that should be seen to take place for top posts as well as for others.&lt;/li&gt;
&lt;li&gt;Make a statement, early on, about the way the department will work – whether this is in the form of a values statement or a broader statement about what the department will stand for. This must then form the framework for all management initiatives and system reviews.&lt;/li&gt;
&lt;li&gt;Ensure that, once appointed, the new Board is visible on all sites and prepared to share problems as well as aspirations.&lt;/li&gt;
&lt;li&gt;Explain the policy reasons for the merger – no doubt captured in the new department’s Aims and Objectives. Establish a specific area or areas where some early practical fruits of the merger will be seen and make this part of the whole department’s understanding.&lt;/li&gt;
&lt;/ul&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;
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&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;Involve staff at all levels in drawing up systems and processes which will underpin the new department – aim for an approach which builds on good practice in the previous departments. Identify the areas where compatibility is likely to be a problem (e.g. pay and grading systems and information technology systems) and focus on these. Be clear about why particular systems are used. Consider new systems where neither of the two departments’ systems merit general application. Avoid a take-over feeling if one department’s systems are used en bloc.&lt;/li&gt;
&lt;li&gt;Aim for significant cross-posting between old parts of the new department. Avoid enclaves which are untouched by the new department and which preserve their own culture.&lt;/li&gt;
&lt;li&gt;Draw up a training and development strategy which supports the new department’s objectives and preferred ways of working.&lt;/li&gt;
&lt;/ul&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;CONFIDENTIAL: POLICY&lt;/strong&gt;&lt;/p&gt;</text>
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              <text>&lt;p style="text-align:left;"&gt;Page 1&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;em&gt;Secretary of the Cabinet and Head of the Home Civil Service&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;PRIME MINISTER&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;DEPARTMENTAL RESTRUCTURING&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;You commissioned further work on the departmental restructuring which we discussed. In particular you asked for my considered advice on whether restructuring on this scale, splitting DfEE, the Home Office and the LCD, would be sensible.&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;2. The changes would tackle two serious areas of weakness. I still think they make a lot of sense. The only questions are how? and when?&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;3. In &lt;span style="text-decoration:underline;"&gt;management &lt;/span&gt;terms the ‘sensible’ course would be to prepare the ground carefully with a small team of key players over a period of months, so that we got buy-in from the people who were going to implement it; and give ourselves, say, a year to do the restructuring. Not everyone will be convinced that the changes are right. Ideally we would build up commitment.&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;4. In &lt;span style="text-decoration:underline;"&gt;political&lt;/span&gt; terms this does not take the trick, I realise; and at heart this a political matter. If you judge that the benefits are worth the upheaval, I think it is open to you to announce the changes next month as we discussed. When push comes to shove the machine will do as it is told; and changes to the machinery of government are peculiarly your preserve. But I think I must make two caveats.&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;5. First, there is bound to be a certain amount of anger and criticism, within Government as well as outside. How much is hard to judge. But no one is expecting this kind of move. Some people will be shocked. &lt;span style="text-decoration:underline;"&gt;There has to be some preparation to deal with this&lt;/span&gt;. Keeping the whole thing secret, and hoping to sell the changes smoothly on the day, would be particularly risky. My advice is that you should authorise me to carry out prior consultation with a small group of people in the departments concerned, carefully selected and sworn to secrecy, preferably ten days before the announcement, to try to defuse the worst of the reactions and make the minimum essential preparations.&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;6. Second, you should not expect instant results from the reorganisation. Structural changes of this time take time to bed down and have effect. The main benefits will be in the long term.&lt;/strong&gt;&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;
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&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;7. The following pages analyse these points in more detail.&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Is it sensible?&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;8. The changes involve big organisational upheaval affecting around 200,000 staff, getting on for half the Government machine. In an ideal world this process should be managed, with careful calculation of three kinds of risk:&lt;/p&gt;
&lt;p&gt;i. &lt;strong&gt;management disruption.&lt;/strong&gt; Experience suggests that restructuring has a short term cost in terms of management distraction. The long-term benefits must be worth this short term cost.&lt;/p&gt;
&lt;p&gt;ii. &lt;strong&gt;upset personalities.&lt;/strong&gt; This applies most obviously to the people at the top of the organisations, Ministers as well as officials. We have to be careful to explain the splits without sounding as though we are criticising anyone. In the case of DfEE, a lot of effort has been invested in integrating the two departments over the last five years. Blunkett, Bichard and their staff may well feel that they have been wasting their time.&lt;/p&gt;
&lt;p&gt;iii. &lt;strong&gt;outside opinion.&lt;/strong&gt; There will be some surprised reactions from outside groups. For instance:&lt;/p&gt;
&lt;p&gt;A lot of people including commentators welcomed the merger of the old departments of Education and Employment. They will need to be convinced that it is now right to split.&lt;/p&gt;
&lt;p&gt;The old Home Office has a distinguished band of old boys who will probably be thunderstruck by the desecration of a revered institution.&lt;/p&gt;
&lt;p&gt;9. &lt;span style="text-decoration:underline;"&gt;In management terms&lt;/span&gt; the ‘sensible’ thing would be to plan the reorganisation in detail beforehand over a period of months with the main participants, ensuring buy-in from all the main players, Ministers and civil servants. News of this work would probably seep out, at least to some senior managers and would probably create some uncertainty. But it would be helpful in preparing people for what was to come and minimising the shock and consequent confusion when it happened. Preparation would help the new departments hit the ground running.&lt;/p&gt;
&lt;p&gt;10. The management arguments also point to doing the DfEE split first, with the Home Office/LCD following at the next Election. The work which is now being done on the ONE agency under Andrew Smith’s direction is reaching a point where decisions are needed on &lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;
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the departmental framework within which the agency will operate: see para 16 below.&lt;strong&gt;&lt;br /&gt;&lt;/strong&gt;
&lt;p&gt;11. Provided that you judge that the political benefits will be sufficiently strong to outweigh these disadvantages, there is nothing to stop you announcing the whole reorganisation to an unsuspecting world on 7 July. There are no recent precedents for quite such a dramatic reorganisation but experience such as it is supports the view that you can do it.&lt;/p&gt;
&lt;p&gt;12. If you decide to do this &lt;span style="text-decoration:underline;"&gt;my preference would be to do at least some basic preparatory planning over the ten days beforehand with a small group of key civil servants&lt;/span&gt;, bound to secrecy, from the departments concerned to minimise chaos on the day. I attach at A a rough outline of the sort of points that need to be covered before an announcement. We do not have the knowledge to do this from inside the Cabinet Office alone.&lt;/p&gt;
&lt;p&gt;13. The rest of this note assumes that you decide to go ahead with an early announcement of the reorganisation.&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Plans for the reorganisation: Permanent Secretaries&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;14. I would propose the following Permanent Secretary moves to competition to fill some at least of the posts. But given the critical need to have senior managers in place during the upheaval we have to be prepared to put them in post straightaway:&lt;/p&gt;
&lt;p&gt;i. &lt;strong&gt;Hayden Phillips&lt;/strong&gt; to head the new Home Office, merging the remainder of the LCD and Home Office;&lt;/p&gt;
&lt;p&gt;ii. &lt;strong&gt;David Omand&lt;/strong&gt; to head the new Department of Justice until the end of the year, with responsibility for setting up the new department and managing the split. At the same time &lt;strong&gt;John Gieve&lt;/strong&gt; would be brought in as the second permanent secretary in the department with responsibility for focusing the new department on delivering its policy responsibilities, on the basis that he would take over the responsibility for the whole department at the end of the year if he had performed well.&lt;/p&gt;
&lt;p&gt;iii. At the end of the year I would propose to move &lt;strong&gt;David Omand&lt;/strong&gt; to the Ministry of Defence and would hope to have persuaded John Kerr to have found a good international slot for &lt;strong&gt;Kevin Tebbit.&lt;/strong&gt; I have not of course been able to explore the feasibility of this, and do not think I could do so until after the announcement. But I believe that MoD is the natural home for David Omand’s talents.&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;
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&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;iv. &lt;strong&gt;Michael Bichard&lt;/strong&gt; to head the new Department of Education. There is a possibility that he will walk out in disgust at the split of DfEE. We need to keep in mind the possibility also that he could become a serious candidate for the new job at the head of the Dept of Health: Alan Milburn has mentioned him to me as someone whom he would be interested in having in the job. If he left DfEE we would have potential successors in &lt;strong&gt;David Normington&lt;/strong&gt; and &lt;strong&gt;Leigh Lewis.&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;v. &lt;strong&gt;Rachel Lomax&lt;/strong&gt; to head the new Department for People of Working Age. She might need coaxing to get her to accept, but I am reasonably sure that she would support what you are doing. She might well be easier to persuade if you also moved Alistair Darling there as Secretary of State.&lt;/p&gt;
&lt;p&gt;vi. &lt;strong&gt;Chris Kelly&lt;/strong&gt; to head what was left of the DSS when he had handed over the Dept of Health to his successor. There is a possibility that he will leave to go to the private sector; he has had a very difficult time recently (and has behaved very well through it). If so, we have a potential successor to Rachel Lomax in &lt;strong&gt;Paul Gray&lt;/strong&gt; who already looks after the restructuring of the Department dealing with people of retired age.&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Plans for the reorganisation: outstanding issues&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;15. There are a number of points on the reorganisation itself which I would like to run over with you.&lt;/p&gt;
&lt;p&gt;16. &lt;strong&gt;Dept for People of Working Age.&lt;/strong&gt; All the work on the new ONE agency, being carried out by Richard Lapthorne, is on the basis that there will be an agency with a chief executive working under the direction of the permanent secretary and a Secretary of State. This is in striking contrast with the Dept of Health where Alan Milburn is moving in exactly the opposite direction, rightly in my view, merging Chris Kelly’s job with Alan Langland’s.&lt;/p&gt;
&lt;p&gt;17. I think we need to consider doing the same in the new department, with the new permanent secretary – Rachel Lomax, if you agree – having the main operating lines reporting to her. The point is urgent in that Andrew Smith, unaware of your plans, is hoping to advertise the chief executive job on 9 July. I have made it clear that this needs your approval.&lt;/p&gt;
&lt;p&gt;18. Whatever you decide on this, I still believe that this new Department should have responsibility for the &lt;strong&gt;employment relations&lt;/strong&gt; functions presently carried out by the DTI (minimum wage etc). Without this, the Secretary of State job will be relatively lightweight, particularly obviously so in comparison with his opposite numbers in other European countries.&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;
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&lt;p&gt;19. &lt;strong&gt;DTI/DETR/DCMS.&lt;/strong&gt; I still have concerns that we are making the job of the Secretary of State for Trade and Industry, already very heavy, even heavier by adding RDAs and broadcasting and media to the portfolio. This is another argument for transferring employment relations to the new Dept for Working Age: see above.&lt;/p&gt;
&lt;p&gt;20. I would also like to be absolutely sure that John Prescott is not going to be upset by losing &lt;strong&gt;RDAs.&lt;/strong&gt; They are very much his creation and closely allied to his other work on regional chambers etc. It is a bigger move than it may seem.&lt;/p&gt;
&lt;p&gt;21. Moving &lt;strong&gt;broadcasting and media&lt;/strong&gt; to DTI will be a body blow to DCMS, even with the transfer to them of minor responsibilities from the Home Office. It is the right thing to do from the point of view of the policy. But we may find that the department is not really viable and has to be revisited sooner or later, perhaps at the next Election. Do you mind this?&lt;/p&gt;
&lt;p&gt;22. &lt;strong&gt;Equality.&lt;/strong&gt; The new Home Office will have lead responsibility for race relations. It could be a very attractive home for a co-ordinate lead role on all equality issues. Gender equality is currently split between DfEE, which also has the Equality Commission, and the Cabinet Office which has Jenni’s Women’s Unit and Women’s National Commission. Putting all these responsibilities together in the new Home Office would give much greater focus to them. I have shown this in the attached chart.&lt;/p&gt;
&lt;p&gt;23. I still have a concern that we will be stepping into &lt;strong&gt;constitutional territory&lt;/strong&gt; by changing the role of the Lord Chancellor. The legal profession and constitutional experts may have a fieldday with it. It will be very important to promise a Legal Appointments Commission in a few years’ time; and there may need to be a willingness to consider whether it really is sensible for the Lord Chancellor to be the Speaker of the House of Lords, once he becomes responsible for politically contentious issues like asylum.&lt;/p&gt;
&lt;p&gt;24. &lt;strong&gt;Home Office warrants.&lt;/strong&gt; I attach as you requested a note setting out the background to the Home Secretary signing warrants. It is the best we can do without consulting the Home Office. I also attach a note showing the history of recent Home Office changes in responsibility.&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Conclusion&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;25. It would be very helpful to go over this ground with you. We shall need a detailed handling plan for all the steps involved in the &lt;/p&gt;
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&lt;p style="text-align:left;"&gt;reorganisation: who is told what when, and so on. I regard preparing this as a key next step when you are clear that you want to go ahead.&lt;strong&gt;&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;(Sgd.) &lt;em&gt;R. T. J. W.&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;RICHARD WILSON&lt;/strong&gt;&lt;br /&gt;&lt;strong&gt;16 June 2000&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;/p&gt;
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              <text>&lt;p style="text-align:left;"&gt;Page 1&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;em&gt;Secretary of the Cabinet and Head of the Home Civil Service&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;PRIME MINISTER&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;RESTRUCTURING&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;It would be helpful to have another go over this ground on Monday.&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Big picture&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;2. The present structure of Government has evolved historically and does not match your strategic thinking. We need to reshape it fundamentally to reflect your modernisation programme and your main big policies, especially on crime, education, transport and reform of the welfare state.&lt;/p&gt;
&lt;p&gt;3. This means:&lt;/p&gt;
&lt;p&gt;i. &lt;strong&gt;creating a Department for Justice to fight crime&lt;/strong&gt;, out of parts of the Home Office and the LCD, plus anti-drugs co-ordination;&lt;/p&gt;
&lt;p&gt;ii. &lt;strong&gt;creating a Department for Home Affairs&lt;/strong&gt;, out of the rest of the Home Office with the Lord Chancellor’s personal responsibilities, to be responsible for asylum and immigration and certain core functions of the State (human rights, freedom of information, fire and emergency planning etc);&lt;/p&gt;
&lt;p&gt;iii. &lt;strong&gt;creating a new Department for Work&lt;/strong&gt; out of parts of DfEE, DSS and DTI, to deal with people of working age;&lt;/p&gt;
&lt;p&gt;iv. &lt;strong&gt;creating a new Department for Education [and Sport]&lt;/strong&gt; out of the rest of DfEE and part of DCMS;&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;
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&lt;p&gt;v. &lt;strong&gt;creating a new Department for Social Security&lt;/strong&gt; out of the rest of DSS and, in the longer term, possibly part of the DETR, to provide a much sharper focus on security for those who cannot work because of disability or age or who are otherwise disadvantaged;&lt;/p&gt;
&lt;p&gt;vi. &lt;strong&gt;strengthening the DTI&lt;/strong&gt; by transferring broadcasting and media from DCMS, and RDAs from the DETR;&lt;/p&gt;
&lt;p&gt;vii. &lt;strong&gt;strengthening MAFF&lt;/strong&gt; by transferring to it Home Office functions relating to animal welfare, vivisection and foxhunting and minor DETR responsibilities for the countryside;&lt;/p&gt;
&lt;p&gt;viii. &lt;strong&gt;creating a new Department for Transport and the Environment&lt;/strong&gt; out of those parts of the DETR which deal with transport, the environment and planning;&lt;/p&gt;
&lt;p&gt;ix. &lt;strong&gt;creating a new Department for Local [and Regional] Government&lt;/strong&gt; out of the parts of DETR which deal with local government and regional policy. This could in due course be merged with the Offices for Scotland and for Wales and the Northern Ireland Office;&lt;/p&gt;
&lt;p&gt;x. &lt;strong&gt;eventually creating two new departments, one dealing with the taxation of large businesses, the other with the taxation of individuals and small businesses.&lt;/strong&gt; These would be constructed out of the Inland Revenue, HM Customs and Excise and parts of DSS; they might involve the transfer of some investigatory functions to the Department for Justice; and they might be accompanied by some restructuring of the Treasury.&lt;/p&gt;
&lt;p&gt;DfEE, the Home Office, the LCD, the DETR, the DSS, Customs and Excise, Inland Revenue and perhaps the Treasury would be split in the process; and the DCMS would cease to exist.&lt;/p&gt;
&lt;p&gt;4. &lt;strong&gt;The first question is: do you agree with this big vision?&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Timing&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;5. Having decided where you want to get to, you need to decide over what timescale. We cannot do it all at once. The disruption of business and the uproar of displaced personalities would be too difficult to manage. And we run into difficulty over the number of Cabinet Ministers.&lt;/p&gt;
&lt;p&gt;6. I suggest that we plan to do this in three phases, each pretty big in its own right.&lt;/p&gt;
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&lt;p&gt;&lt;strong&gt;Phase 1&lt;/strong&gt; on 14 July would be the first six or seven steps above:&lt;/p&gt;
&lt;p&gt;splitting the Home Office and the LCD to create the new Department for Justice and the new Department for Home Affairs;&lt;/p&gt;
&lt;p&gt;splitting the DfEE and announcing the longer-term split of DSS to create the new Department for Education (but not Sport at this stage), the new Department for Work and the new DSS;&lt;/p&gt;
&lt;p&gt;strengthening DTI with broadcasting and the media and the RDAs;&lt;/p&gt;
&lt;p&gt;possibly strengthening MAFF with foxhunting, horse breeding, vivisection and more countryside.&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Phase 2&lt;/strong&gt; would take place on the Monday following the next Election. The plan would be to:&lt;/p&gt;
&lt;p&gt;form the new Department for Transport, Environment and Planning out of DETR;&lt;/p&gt;
&lt;p&gt;form &lt;span style="text-decoration:underline;"&gt;either&lt;/span&gt; the new Department for Local Government out of the rest of DETR &lt;span style="text-decoration:underline;"&gt;or&lt;/span&gt; a new Department for the Constitution by adding in also Scotland, Wales and Northern Ireland;&lt;/p&gt;
&lt;p&gt;wind up DCMS, with sport going to the Department for Education, and culture and the lottery going to either Home Affairs, or DTI or DET.&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Phase 3&lt;/strong&gt;: plan to restructure Inland Revenue, HM Customs and Excise and perhaps the Treasury a year or so into the next Parliament.&lt;/p&gt;
&lt;p&gt;6. &lt;strong&gt;The second question is: do you agree with this phasing?&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Further details of the Restructuring&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;7. We then need further guidance from you on some of the details of this restructuring.&lt;/p&gt;
&lt;p&gt;8. There are a few areas which we have discussed, but which would be useful finally to confirm.&lt;/p&gt;
&lt;p&gt;i. Should &lt;strong&gt;RDAs&lt;/strong&gt; transfer to DTI now, rather than when DETR is split post-election?&lt;/p&gt;
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&lt;p&gt;ii. Should &lt;strong&gt;media&lt;/strong&gt; responsibility transfer to DTI from DCMS now?&lt;/p&gt;
&lt;p&gt;iii. On the assumption that DCMS will continue until the election, should we transfer into DCMS now responsibility for the &lt;strong&gt;voluntary sector, gambling and liquor licensing?&lt;/strong&gt; If we move gambling, should horse racing and the Tote (in the course of privatisation) also transfer to DCMS?&lt;/p&gt;
&lt;p&gt;iv. Should this be accompanied by a transfer of responsibility for &lt;strong&gt;animal welfare, vivisection and fox hunting&lt;/strong&gt; to MAFF? MAFF would continue to lead on horse breeding issues.&lt;/p&gt;
&lt;p&gt;v. Should the co-ordinating responsibility for &lt;strong&gt;drugs&lt;/strong&gt; transfer to the new Department for Justice now?&lt;/p&gt;
&lt;p&gt;vi. My earlier advice assumed that responsibility for training for &lt;strong&gt;the 16-18 age group&lt;/strong&gt; should go to the Department for Education. Is this right?&lt;/p&gt;
&lt;p&gt;vii. Should &lt;strong&gt;adult learning&lt;/strong&gt; also remain with the Department for Education? (This could be accompanied by a strengthening of the machinery and Ministerial responsibility, as proposed in Andrew Adonis’s recent report to you.) It would, however, mean that the new Department for Justice and the new Department for Education would need to work closely together: this could be built into the detailed arrangements.&lt;/p&gt;
&lt;p&gt;viii. I have put a separate note to you on the &lt;strong&gt;youth&lt;/strong&gt; co-ordination responsibility. Should this too sit with the new Department for Education?&lt;/p&gt;
&lt;p&gt;9. We have discussed the future of the DTI &lt;strong&gt;employment relations&lt;/strong&gt; functions. When we last spoke, you said that you were concerned that the Secretary of State for Trade and Industry should not be overloaded in the run-up to the Election. With the transfer to DTI of RDAs and media responsibility, this is a risk. While I understand the concern that the Department for Work might reverse the DTI’s business-focused approach to these issues, I think that underestimates the new business focus of the welfare to work agenda. It would be possible to transfer only the employment tribunal service and ACAS to the Department for Work, but ironically this has a much higher ‘union’ input. I continue to prefer transferring the whole directorate, but with a very clear steer from you to the new Secretary of State, and from me to the new Permanent Secretary, that a business focus is essential.&lt;/p&gt;
&lt;p&gt;10. Under the phase 1 changes, responsibilities for &lt;strong&gt;equality&lt;/strong&gt; will remain oddly scattered. The Department of Home Affairs will lead on race equality, &lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;
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&lt;br /&gt;&lt;br /&gt;and the Department for Work on gender and disability with, the Women’s Unit remaining in the Cabinet Office.&lt;strong&gt;&lt;br /&gt;&lt;/strong&gt;
&lt;p&gt;11. There is a good case for &lt;strong&gt;bringing these equality functions together&lt;/strong&gt;, to streamline the machinery and to increase their effectiveness in communication etc. However, the logical home would be the new Department for Home Affairs, and the Ministerial responsibility might not sit well with the present Lord Chancellor. The only other serious contender is DSS. The options are, therefore, either to leave these functions where they fall until the Election or to bring them together in DSS. Are you content to leave equality issues where they fall for the time being, streamlining them in phase 2?&lt;/p&gt;
&lt;p&gt;12. You also asked about options for strengthening MAFF’s &lt;strong&gt;countryside&lt;/strong&gt; focus. I attach notes on the two simplest options. However, if you adopt the phase approach above, I suggest leaving this until we make the changes to DETR. This would enable the changes to be represented as a follow through to the Rural White paper, rather than pre-empting it by moving the boundary now.&lt;/p&gt;
&lt;p&gt;13. Finally, there is work which you may want to commission as part of the phase 1 changes.&lt;/p&gt;
&lt;p&gt;i. I think this is a good moment to grasp the nettle and say that the Government will review the role of the &lt;strong&gt;Lord Chancellor.&lt;/strong&gt; This should include a clear statement that you propose to set up a judicial appointments commission during the next Parliament; that you intend to review the rest of the Lord Chancellor’s judicial functions (he acts as Head of the Judiciary rather than a Minister in all sorts of statutes); and a commitment to review his role as “speaker” of the House of Lords as part of the next phase of Lords reform.&lt;/p&gt;
&lt;p&gt;Are you content to commission this work? Derry Irvine may hate it but it is ripe for modernisation.&lt;/p&gt;
&lt;p&gt;ii. I recommend that the new Secretary of State for Justice should be given a clear remit to review the &lt;strong&gt;national arrangements for organised crime.&lt;/strong&gt; This review – which again should be announced – should cover the role of HM Customs, NCIS, the national crime squad, the work of the intelligence agencies on crime, DTI’s fraud functions and the proposed national confiscation agency. Unannounced, it should also examine the case for some form of national police force.&lt;/p&gt;
&lt;p&gt;Content with this please?&lt;/p&gt;
&lt;p&gt;iii. &lt;span style="text-decoration:underline;"&gt;Not&lt;/span&gt; for announcement, we would start after these changes to work up the details of restructuring the &lt;strong&gt;DETR&lt;/strong&gt; and abolishing&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;
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&lt;p&gt;the &lt;strong&gt;DCMS&lt;/strong&gt;, including options which would involve MAFF (although I am currently inclined to advise that the latter should remain largely unchanged except for modest additional countryside functions).&lt;/p&gt;
&lt;p&gt;iv. The work on the new &lt;strong&gt;Welfare to Work&lt;/strong&gt; agency should go ahead, with a much clearer lead from the new Department for Work, with the aim of setting up the agency from June next year.&lt;/p&gt;
&lt;p style="text-align:left;"&gt;&lt;br /&gt;(Sgd.) &lt;em&gt;R.T.J.&lt;/em&gt;&lt;em&gt;W.&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;RICHARD WILSON&lt;/strong&gt;&lt;br /&gt;23 June 2000&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;CONFIDENTIAL AND PERSONAL&lt;/strong&gt;&lt;/p&gt;</text>
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              <text>&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL&lt;/strong&gt;&lt;br /&gt;&lt;em&gt;(no copies)&lt;/em&gt;&lt;/p&gt;
&lt;p style="text-align:right;"&gt;&lt;strong&gt;From: David Miliband&lt;/strong&gt;&lt;br /&gt;&lt;strong&gt;Date: 6 July 2000&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;PRIME MINISTER&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;REORGANISATION YES, RESHUFFLE NO&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;1. I am afraid I have hardened against personnel shifts:&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;Since we want to fight the election on education, we need our best person there; we cannot afford to ‘make do’ in this area; we need DB leading the charge on education, not defending our record on crime; he will make an excellent Crime Czar after the election, when he can have a good run at the issue.&lt;/li&gt;
&lt;li&gt;A reshuffle will detract from our core message for July, from the CSR and from the rollout; we say we are doing the serious things that need doing, not getting caught up in media obsession with personalities. We should stick to that.&lt;/li&gt;
&lt;li&gt;The worst thing would be to do this in the belief it will seem decisive. It will look like a sign of weakness not strength (I cannot recall the last time any reshuffle looked like an act of strength).&lt;/li&gt;
&lt;li&gt;Jack will actually be a radical on courts etc.&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;2. However, I think you should try and pull off the switch of courts to HO and asylum/immigration to LCD (plus HO gubbins to DCMS etc). This will be fraught: Derry will oppose very hard, on constitutional as well as personal grounds. There is a strong case for bringing in a top policeman as a new Michael Barber figure in the HO. But worth trying.&lt;/p&gt;
&lt;p&gt;3. If DB stays, you cannot split DfEE, but I think you should make clear to all concerned, if necessary publicly, that the development of One should be premissed on the creation of a new department.&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;strong&gt;CONFIDENTIAL&lt;/strong&gt;&lt;/p&gt;</text>
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              <text>&lt;p&gt;Page 1&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;b&gt;CONFIDENTIAL &amp;amp; PERSONAL&lt;/b&gt;&lt;/p&gt;
&lt;p style="text-align:right;"&gt;&lt;strong&gt;For the Minister: Home Office note&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;b&gt;CHANGES TO THE HOME OFFICE&lt;/b&gt;&lt;/p&gt;
&lt;p&gt;The Home Office is being reorganised with two main aims: to establish a single department with end-to-end responsibility for the criminal justice system, and to streamline its business so as to enable its Ministers to focus on the reduction of crime. This is being achieved by the transfer to the Home Office of the Court Service and associated functions from the Lord Chancellor’s Department and the transfer elsewhere of a number of non-core traditional Home Office functions. The Department will have the lead in implementing the Auld Review and the Halliday report on sentencing policy.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Ministers&lt;/b&gt;&lt;/p&gt;
&lt;p&gt;A Ministerial team of six Ministers [or seven?]&lt;/p&gt;
&lt;p&gt;Home Secretary&lt;br /&gt;Three Ministers of State&lt;br /&gt;Two Parliamentary Secretaries, (one in the Lords)&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Responsibilities&lt;/b&gt;&lt;/p&gt;
&lt;p&gt;The Home Office will retain its present responsibilities for criminal justice policy, crime reduction, prisons, police, asylum, immigration, nationality and passports (approximately 9,500 staff plus a further 44,000 staff in the Prison Service and other agencies).&lt;/p&gt;
&lt;p&gt;In addition it will take on:&lt;/p&gt;
&lt;p&gt;i. Court Service from the LCD (c10,000 staff);&lt;/p&gt;
&lt;p&gt;ii. Magistrate’s Courts from the LCD (c8000 full-time and 2500 part-time staff)&lt;/p&gt;
&lt;p&gt;iii. LCD’s Directorate of Criminal Justice Courts and Criminal Policy &lt;i&gt;comprising a Magistrates’ Courts Division, Magistrates’ Courts IT division, Criminal Justice Division and a Criminal Planning and Resources Division;&lt;/i&gt;&lt;/p&gt;
&lt;p&gt;iv. UK Anti-Drugs Co-ordination Unit from the Cabinet Office (23 staff plus two expert special advisers, Keith Hellawell and Mike Trace).&lt;/p&gt;
&lt;p&gt;v. Work Permits UK (administration of the Work Permits arrangements for the UK; representing employment policy interests in wider immigration policy and free movement of workers) from the DfEE.&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;b&gt;CONFIDENTIAL &amp;amp; PERSONAL&lt;/b&gt;&lt;/p&gt;
&lt;!-- Divider --&gt;
&lt;div style="border-top:2px solid #000;margin:2em 0;"&gt;&lt;/div&gt;
&lt;p&gt;Page 2&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;b&gt;CONFIDENTIAL &amp;amp; PERSONAL&lt;/b&gt;&lt;/p&gt;
&lt;p&gt;At the same time it will lose a number of miscellaneous, mostly small-scale, responsibilities with their associated non-departmental public bodies:&lt;/p&gt;
&lt;p&gt;i. freedom of information openness and data protection (13 staff) to the LCD;&lt;/p&gt;
&lt;p&gt;ii. electoral law (7 staff) and the Electoral Commission to the DETR;&lt;/p&gt;
&lt;p&gt;iii. human rights (6 staff) to the LCD;&lt;/p&gt;
&lt;p&gt;iv. Channel Islands and the Isle of Man (8 staff) to the LCD;&lt;/p&gt;
&lt;p&gt;v. Royal, Church of England and hereditary matters (7 staff) to the LCD;&lt;/p&gt;
&lt;p&gt;vi. Fire Service (124 staff) to the DETR;&lt;/p&gt;
&lt;p&gt;vii. burial and cremation law, war memorials to DETR;&lt;/p&gt;
&lt;p&gt;viii. byelaws (3.5 staff) to DETR and DCMS;&lt;/p&gt;
&lt;p&gt;ix. gambling, liquor licensing and horseracing (33 staff) plus the Gaming Board, Horserace Betting Levy Board, Horserace Betting Levy Appeal Tribunal, National Stud and the Tote to DCMS;&lt;/p&gt;
&lt;p&gt;x. censorship and video classification (up to 3 staff) to DCMS but policy on obscenity stays;&lt;/p&gt;
&lt;p&gt;xi. Active Community Unit to Cabinet Office;&lt;/p&gt;
&lt;p&gt;xii. planning for the Golden Jubilee (11 staff) to the DCMS;&lt;/p&gt;
&lt;p&gt;xiii. animal welfare including the Hunting Bill (8.5 staff) to the DRA (nb. but vivisection remains with the Home Office);&lt;/p&gt;
&lt;p&gt;xiv. Sunday trading, Summertime and fixed Easter (1 staff) to DTI.&lt;/p&gt;
&lt;p style="text-align:left;"&gt;8 June 2001&lt;/p&gt;
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              <text>&lt;p&gt;Page 1&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;b&gt;CONFIDENTIAL &amp;amp; PERSONAL&lt;/b&gt;&lt;/p&gt;
&lt;p style="text-align:right;"&gt;&lt;strong&gt;PM Speaking Note 3&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;b&gt;HOME OFFICE&lt;/b&gt;&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Appointment:&lt;/b&gt; Want you to be Home Secretary. Crucial post.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Accommodation:&lt;/b&gt; Continue to have the use of South Eaton Place.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Salary:&lt;/b&gt; Richard Wilson has asked permanent secretaries to assume that all Cabinet Ministers will draw their full salary unless an individual Minister decides otherwise. Not going to make a big song and dance about it: just do it.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Structural changes:&lt;/b&gt; Making important changes to structure immediately. Announcing today. Important that key partners are consulted. Lord Chancellor is seeing the judiciary. &lt;b&gt;Action:&lt;/b&gt;&lt;/p&gt;
&lt;p&gt;i. You should talk to the police through ACPO, and perhaps also the probation service, so that they understand what is going on.&lt;/p&gt;
&lt;p&gt;ii. You or someone on your behalf should talk to the authorities in Guernsey, Jersey and the Isle of Man to explain to them the changes which are being made.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Aim of changes:&lt;/b&gt; to give Home Office end-to-end responsibility for criminal justice system, and to slim down business to enable you to concentrate on reducing crime.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Key features:&lt;/b&gt; Detail summarised in note. &lt;i&gt;Hand over note.&lt;/i&gt;&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Court Service&lt;/b&gt; and associated policy functions being transferred from the Lord Chancellor’s Department (LCD) to the Home Office, plus the Drugs Unit from the Cabinet Office. But Lord Chancellor remains responsible for judicial appointment, civil law etc. No question of undermining the independence of the judiciary.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Work permits&lt;/b&gt; also being transferred from the DfEE because of close link with immigration work.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Many minor Home Office functions&lt;/b&gt; being transferred to the LCD (eg. freedom of information, Channel Isles, human rights), DCMS (eg. gambling, horseracing, video classification), DETR (Fire Service, electoral law), DTI (Summertime etc), Cabinet Office (Active Community Unit) and new Department of Rural Affairs (animal welfare including the Hunting Bill but not vivisection).&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;b&gt;CONFIDENTIAL &amp;amp; PERSONAL&lt;/b&gt;&lt;/p&gt;
&lt;!-- Divider --&gt;
&lt;div style="border-top:2px solid #000;margin:2em 0;"&gt;&lt;/div&gt;
&lt;p&gt;Page 2&lt;/p&gt;
&lt;p style="text-align:center;"&gt;&lt;b&gt;CONFIDENTIAL &amp;amp; PERSONAL&lt;/b&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;For use if needed:&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Reducing crime&lt;/b&gt; is the key priority. Delivering results over the lifetime of this Parliament is essential.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Present structure is too heavy&lt;/b&gt; to enable Home Secretary to concentrate on the main priorities. Too many distractions blowing up out of a clear blue sky which require the attention of the Home Secretary at present (eg. mad dogs, Royal Jubilee issues)&lt;/p&gt;
&lt;p&gt;&lt;b&gt;These transfers&lt;/b&gt; make more sense in the context of the work of these other departments: eg.&lt;/p&gt;
&lt;p style="margin-left:2em;"&gt;&lt;strong&gt;LCD&lt;/strong&gt; must get something in return for what they are giving up.&lt;/p&gt;
&lt;p style="margin-left:2em;"&gt;&lt;b&gt;Liquor licensing:&lt;/b&gt; needs to be seen in the context of tourism and leisure industries. Policy goes much wider than the criminal law. Criminal law still a matter for you.&lt;/p&gt;
&lt;p style="margin-left:2em;"&gt;&lt;b&gt;Electoral law:&lt;/b&gt; nothing to do with crime. Makes sense to handle it alongside local government elections.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Special Advisers:&lt;/b&gt; You will be getting UK Anti-Drugs Coordination Unit from the Cabinet Office. Keith Hellawell and Mike Trace are special advisers and their contracts formally lapse today. You will need my formal permission to reappoint them - as with your other special adviser appointments - but I will regard them as being additional to your normal limit.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Contract:&lt;/b&gt; Want to agree with you the main objectives which we shall be driving through in this Parliament. Here is a draft of what that contract will be. Will want to discuss it and agree it with you in next few weeks when you have had a chance to consider it.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;New Delivery Unit in Cabinet Office&lt;/b&gt; reporting to me through Charlie Falconer, will be in charge of supporting your department in delivering this contract, ensuring any problems are tackled and reporting progress.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Management team.&lt;/b&gt; You will want to be sure that your department’s Management Board has the skills which it needs to deliver this contract. Richard Wilson has asked permanent secretaries to make sure that they have the skills which they need in their top team. Grateful if you would take a close interest in this.&lt;/p&gt;
&lt;p style="text-align:right;"&gt;8 June 2001&lt;/p&gt;
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              <text>&lt;p style="text-align:center;"&gt;&lt;b&gt;CONFIDENTIAL &amp;amp; PERSONAL&lt;/b&gt;&lt;/p&gt;
&lt;p style="text-align:right;"&gt;&lt;strong&gt;For the Minister: Lord Chancellor's Department Note&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;b&gt;CHANGES TO LORD CHANCELLOR’S DEPARTMENT&lt;/b&gt;&lt;/p&gt;
&lt;p&gt;The responsibilities of the Lord Chancellor’s Department (LCD) for the Court Service, the Magistrates’ Courts and associated policy functions are being transferred to the Home Office to enable accountability for the running of the criminal justice system to be located in one department.&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Ministers&lt;/b&gt;&lt;/p&gt;
&lt;p&gt;A Ministerial team of four (or three given the reduced workload?)&lt;/p&gt;
&lt;p style="text-align:center;"&gt;      &lt;/p&gt;
&lt;p&gt;Lord Chancellor&lt;/p&gt;
&lt;p&gt;Three Parliamentary Secretaries, one in the Lords&lt;/p&gt;
&lt;p&gt;&lt;b&gt;Responsibilities&lt;/b&gt;&lt;/p&gt;
&lt;p&gt;The LCD will retain responsibility for judicial appointments and other judicial matters, legal aid and the Criminal Defence Service and will continue as now to administer some tribunals including the immigration appeals tribunals. The responsibilities of the Department for civil justice policy, civil rights and constitutional matters will be strengthened by the inward transfer of many of the Home Office’s constitutional responsibilities including Freedom of Information, human rights, the Channel Islands, and Royal and Church matters (see note 3).&lt;/p&gt;
&lt;p style="text-align:right;"&gt;8 June 2001&lt;/p&gt;
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