AP
Pat McFadden wants civil servants to 'take more risks'.

Business leaders have expressed concerns at the government’s plans to reform the civil service.

In a bid to foster innovation, the Chancellor of the Duchy of Lancaster, Pat McFadden, has said he wants government departments to ‘think more like a start-up’.

The government say a £100 million fund will be set up next month to finance ‘problem solving teams’ to bolster efficiency across Whitehall.

The Cabinet Office is also opening a third wave of recruitment, calling for tech workers to join the civil service on six to 12 month secondments.

‘Too stereotypical’

Duncan Cockburn, finance director at one of the UK’s largest smart insurance providers, has criticised the government’s methods, describing them as “too stereotypical.”

Cockburn says that “innovation cannot be forced in this way”. He believes the government should tackle the root of inactivity by focusing energy on deregulation.

He says “less rules and less boundaries” will allow government departments to innovate in their own ways.

McFadden’s comparison with start-up companies has also come under fire. Cockburn says start-ups have “greater freedom from accountability” meaning they can innovate and adapt quicker. He believes that this speed sets government and private companies apart.

‘More precise changes’ needed

In a speech in East London, McFadden also outlined how he wants civil servants to ‘have an appetite for risk’ by not shying away from the ‘test and learn’ culture of large tech companies.

Swarnali Mitra, the director of carbon finance at a global carbon removal provider based in the UK, has also shown scepticism at McFadden’s approach.

She says that the plans are too broad and that to see tangible improvement, the public sector “needs to carve out more precise changes.”

After also drawing criticism from a civil service union boss, McFadden has defended his calls for more innovation.

He has clarified that his plans are not a criticism of civil servants’ work ethic but the “outdated” system in which they operate.