THE LORD LEVENE OF PORTSOKEN K.B.E.

10 June 2011
The Rt Hon Dr Liam Fox MP
Secretary of State for Defence
Ministry of Defence
MoD Main Building
Whitehall
London SW1A 2HB
Dear Secretary of State
In August last year, you asked me to chair the Defence Reform Steering Group. You had assembled a wide range of talent to form the membership of the Group coming from a number of different backgrounds. Some had more experience than others of the MOD and its workings, but as is often the case those who had less experience were often able to bring new ideas to the table from which we benefited considerably.
The work load involved was heavy and demanding, but the members - of whom all but two were unpaid volunteers - worked tirelessly to complete the work, and were refreshingly forthright in expressing their opinions, even when it was clear that such opinions might prove unpopular. I would like to pay tribute to them and thank them for all that they did. As you might expect and indeed might have hoped, we did not all agree on every issue, but disagreements were handled both amicably and courteously.
I had explained at the outset that, based on my previous service in the Department, I felt sure that the heavy volume of support work could be effectively and intelligently handled by MOD staff both military and civilian, and that it should not prove necessary to engage any outside help. The MOD staff fully lived up to my expectations, not only absorbing and refining large volumes of data in a very timely fashion, but also handling with both fortitude and good humour some of the inevitable criticism which was at times directed at them. They equally deserve great credit for enabling us to complete our work.
The timetable which we agreed initially for the work was with the aim to complete it by the end of July. The fact that we were able to do so nearly two months early reflects great credit on all those who worked on it. I hope therefore that this might encourage the Department to carry through the implementation of those recommendations which you accept without the need of outside support.
We have addressed some complex and sensitive issues that have potentially significant consequences for the Ministry of Defence and the Armed Forces. In some areas we debated whether our proposals went too far, for example in the balance of work between the Head Office and the Commands. In others we might have gone further, for example we considered whether our proposals for changes to the appointments procedures were radical enough or whether we should recommend a more joint approach to the management of senior personnel. We also recommend further work on the detailed role and responsibilities of the Joint Forces Command. Inevitably there have been some fine judgements. You will wish to consider whether we have struck the right balance.
You will also note that we have recommended that the Department should consider the appointment of the CDM as an Accounting Officer. Although not all of the members of the group feel strongly about this, I hope that you will give it serious consideration.
The difficulties which face you and your colleagues in managing UK Defence are substantial and will require clear decisions and determination to overcome. But the readiness of those whom we met both on the military and civilian sides of the Department to succeed, indicate to me that you have a very strong team who are totally committed to win.
My past experience in the Department left me with an understanding of the unique nature of the Ministry of Defence as a Government Department. The uniqueness comes from the fact that it consists of two parallel groups of servants of The Crown, both made up of able, talented and determined people. What I found was that when they combine together well they are able to achieve some pretty remarkable and successful results. However, what we used to call "creative tension", can sometimes lead to internal disputes with the two groups appearing to be at odds with each other and often under close public scrutiny.
I hope that in some small way this report, which has shown the two groups working together at their best, may reinforce the team spirit under which so much can be achieved and which is needed today more than ever.
Yours Sincerely,