Village Life in Civil Service Society: Department—Treasury Bargaining

Abstract

The Treasury is responsible for managing the economy, departments for managing their subject matter. Since the Second World War, this theoretical distinction has been increasingly accepted by both sides and it has contributed much to the improved spirit of co-operation between Treasury and spending departments. Yet relationships between the two also constitute a mixed-motive game. Each can both help and harm the other immeasurably. They need each other but they also need to get around one another. Their conflicts are rooted in the institutional differences that separate those whose criteria for success depend on spending (and hopefully accomplishing) more, and those whose first obligation is to keep spending (and hence taxes) within acceptable limits. Their co-operation works through membership in a common society where some perform the substantive operations and others authorize the necessary funds.

The Civil Service is run by a small group of people who grew up together.

Treasury official

The conduct of expenditure business is an eternal dialogue between the department and the Treasury….

Sir Richard Clarke, New Trends in Government, P. 48.

We can never have a situation like that where the Treasury says to a Department, ‘We do not agree with you; go away.’ I must stress this.

Leo Pliatzky, Treasury undersecretary, Evidence to Trade and Industry Subcommittee, Expenditure Committee (1970‒1), pp. 80–1