A very civil separation

LONDON and Edinburgh are formally operating as separate administrations, breaking the powerful civil service links that used to bind Scotland into the rest of the United Kingdom, The Scotsman can reveal.

The country's most senior civil servant has disclosed that the election of the SNP has brought an end to the informal contacts that used to be commonplace between the Scottish Executive and UK government.

In a development that will alarm unionist politicians at Westminster, Sir John Elvidge has revealed civil servants no longer exchange information informally, as they did in the first eight years of devolution.

The sea change in relations between Edinburgh and Whitehall was revealed as Sir John, the Permanent Secretary at the Executive, said he was pressing ahead with plans to create a separate Scottish civil service, severing the link with Whitehall that has existed for more than a century.

In an exclusive interview with The Scotsman, he also hinted that there could be a formal move to drop the title Scottish Executive and replace it with Scottish Government.

Last night, it was clear that the creation of a separate civil service and renaming the Executive - both of which would have to be agreed at Westminster - had angered UK ministers.

However, it was Sir John's revelation about the conduct of business between the Executive and the UK government that emphasised the huge change brought about by the election of a Nationalist administration.

Asked about relations with Whitehall, he said: "They understand they can't expect me to tell them the thoughts of this government and that I don't expect them to tell me the thoughts of the UK government until we are in a process of discussion about a particular thing.

"I don't expect them to talk as freely to me as they would talk to each other and they understand I won't talk to them about the thinking of the government here until we are ready to do that in a reasonably formal way.

"It changes the nature of the conversation; it makes it a bit more formal. It is working for a separate government. There isn't much ambiguity about that."

However, Sir John's statement appears to be at odds with guidance issued to civil servants by the department of constitutional affairs in London.

In a leaflet called Devolution: a guide for officials, it states that "developing and maintaining close links with colleagues in devolved administrations" dealing with the same policy issues is part of good practice.

One well-placed observer of the civil service said Sir John was only doing what he should - following the directions of the democratically elected government. "Sir John is a civil servant fully committed to implementing the wishes of the Executive, and no-one should read anything personal into this.

"He is working for the SNP and the Nationalists believe in independence. But the SNP will not be disappointed that, in pressing ahead with the creation of a separate Scottish civil service, they are taking another step towards their ultimate goal."

The new Scottish civil service will be modelled on the independent Northern Irish one. Sir John has had talks with Nigel Hamilton, head of the province's civil service, and with Sir Gus O'Donnell, head of the UK home civil service.

The Scotsman understands Sir Gus has, in the past, privately expressed serious reservations about the idea. Asked about Sir Gus's view, Sir John hinted there was a difference of opinion over whether Whitehall still had power over Scottish civil servants, who are currently part of the home civil service.

He said: "I don't think he [Sir Gus] has formed a view. Just as my view has always been that this is an issue in Scotland for Scottish ministers, I think his view would be that this is an issue for UK ministers."

Asked about the word "government", Sir John pointed out that the executive arm of the Welsh parliament had adopted the term through legislation in Westminster. "That probably tells us 'government' is not a frightening word in London."

And, asked about moves to do the same in Scotland, he replied: "People increasingly talk about the Scottish government; it's their natural way of describing what this is. Since good understanding of who we are and what we do is one of our objectives, we need to think about that."

Having a separate Scottish civil service would mean the Prime Minister and the head of the home civil service in London would no longer have a role in appointing the Permanent Secretary at the Executive.

Recruiting the Scottish civil service would also be separate, with a new civil service commission for Scotland set up to maintain political impartiality and ensure politicians did not have too much influence in selecting senior officials.

Although Sir John described the change as "breaking quite a slender thread", arguing the Scottish civil service had considerable autonomy already, it will not be viewed like that in London.

A senior ministerial source in London said Sir Gus's objection to the plan should serve as a warning to Sir John not to push ahead with it.

Despite the likely need for legislation at Westminster, the source said: "This is a matter for Gus O'Donnell, and Sir John should listen to the instructions of his superior."

Last night, Eddie Reilly, Scottish secretary of the PCS union, which represents Scotland's civil servants, said: "We are not opposed to this in principle, but there are issue involving pay and conditions and pensions we would like more detail on."

But Jim Caldwell, who handles negotiations on Scotland for the FDA, formerly the First Division Association, which represents senior civil servants, said: "If we had a position it would probably be in favour of retaining a UK civil service."

Q & A: DIVIDED CIVIL SERVICE

Who will appoint the head of the Scottish civil service?

An independent Scottish Civil Service Commission, if the Northern Ireland model is followed. The Commission, which would not have politicians on it, would make a recommendation direct to the First Minister.

In the past, the Permanent Secretary at the Executive, and before that the Scottish Office, was appointed by the Civil Service Commission, a UK body.

Will the head of the UK civil service and the Prime Minister, who are currently involved in the appointment of the Scottish Permanent Secretary, be involved?

No. Not at all.They are not involved in the appointment of the head of the Northern Ireland civil service.

The Prime Minister (inset) is the minister for the civil service but if the Scottish civil service is separate he will no longer have a role.

What will happen to the pensions of current civil servants?

This is one of the "technical issues" identified by Sir John. It is expected the current pensions, and those of civil servants already in the UK scheme, would continue but because the work on this is at an early stage this has not been resolved.

Unions representing civil servants in Scotland will press hard for staff to continue to be paid from the current, Treasury-funded, pension scheme.

Would the new service have a separate pensions scheme?

Logic would suggest that it should. Northern Ireland has a separate pension scheme. Although the pension levels are similar to the UK, there are some differences, for example in terms of how you qualify for benefits.

However, there are benefits in the present system as civil servants' schemes are underwritten by the UK Treasury and not coming out of the block grant that comes to Scotland from London.

If there were to be a separate scheme it is hard to see UK ministers allowing the Treasury to pick up the liabilities rather than the Scottish Executive.

What about pay in the new Scottish civil service?

It would be up to the new service to set pay and benefit levels so this could diverge from the UK over time. In Northern Ireland, however, pay and conditions are similar to the UK, though civil servants in Whitehall benefit from London weighting.

How would a new civil service manage career progression?

There would be a separate career development plan, though the Executive civil service already has much autonomy in terms of personal management.

Although most Executive civil service training is done in Scotland, staff also have access to courses like Sunningdale, the civil service college near Ascot, which is now called the National School of Government.

There is a Scottish branch of the National School and it could be that this would become an independent Scottish school of government.

However, there are many civil servants who privately value the links that are forged between Scotland and Whitehall in these joint training schemes and would be reluctant to lose them.

Would there still be secondments between Scotland and London?

In the past senior officials, including Sir John himself, have worked for a time in London as it was felt useful to have a knowledge of Whitehall.

Although some civil servants have come from London to work temporarily in Scotland, there have been fewer who have done so than those going from north to south.

This process would be made more difficult by having a separate organisation and is another of the issues the senior civil servants' union, the FDA, is concerned about.

Has the Executive employed consultants to help take forward the plans?

No.

Has the Executive looked at whether there would be extra costs in setting up a separate Scottish civil service?

That will be part of the process Sir John has begun. As the Executive has considerable autonomy already, it is unlikely there would be a huge extra cost. The Executive has its own human resources and pay functions, for example.

Will the public notice if there is a change?

Probably not immediately. The policy-making that the civil servants do and the services that they provide or inspect and monitor would initially remain the same.

However, over a period of time it could be that the Scottish civil service will develop its own identity with its permanent secretary - or whatever title its head has - acquiring a much higher profile in his or her own right.

Is there a similar development in Wales?

Although the Welsh assembly executive is now known as a "government" and the Welsh nationalists are in coalition with Labour, there are no plans to have a separate Welsh civil service. However, politicians, especially nationalists, and civil servants in Wales will be watching events in Scotland with interest.

Will Whitehall co-operate?

No-one knows. To set up a separate civil service will almost certainly need legislation at Westminster where the Labour government is hostile to anything that might, in its eyes, lead to further steps to independence.

However, Alex Salmond can argue that if it is good enough for Northern Ireland, still part of the UK, it should be good enough for Scotland.

'JOBS WILL GO'

SIR John Elvidge said there will be a reduction in the number of civil servants working for the Executive as ministers press ahead with moves to make the Scottish government more efficient.

He said: "I think it is clear that ministers think there is scope to have a more streamlined public sector, and work is going on on that. That's as much about the institutions you have as about how many people you have in each institution.

"It's also clear that ministers intend to maintain the pressure on efficiency, which implies that over time organisations get smaller. It's certainly true that this organisation [the Executive] is likely to get smaller over time."

There are 4,300 "core" staff working directly inside the Executive.

Sir John added that work was taking place on plans to hand the work of the Communities Scotland regeneration quango to local authorities and on reform of Scottish Enterprise, the economic development body.

150,000 aide with humble beginnings

A GLANCE at Sir John Elvidge's CV leaves the impression that he is a civil servant straight from the Yes Minister mould. After graduating from Oxford University with a BA in English, he joined the Scottish Office as a high-flying "fast-track" entrant in 1973.

He worked in most Scottish Office departments over the years and was seconded to the Cabinet Office in London from 1998 to 1999.

He went on to head the Executive's education department in May 1999 - skilfully handing the crisis over the Scottish Qualifications Authority- before becoming head of finance in 2002. He was appointed Permanent Secretary in July 2003 and an almost obligatory knighthood followed in 2006.

Yet there is more to Sir John, 56, who is paid more than 150,000 a year, than mandarin archetype. The son of a factory-worker mother and jack-of-all-trades father, he is a London-born, state-school boy who got to Oxford after a teacher recognised his potential and told him to work harder.

Grandson of a bookie, he is a dab hand at calculating odds and still keeps an interest in racing, though he does not gamble.