Rebuilding the State: Why Britain Needs a Civil Service With Real Skin in the Game

Britain’s chronic state‑capacity problem is no longer a matter of debate. Across infrastructure, healthcare, policing, and basic administrative competence, the pattern is depressingly familiar: ambitious plans announced with fanfare, followed by drift, delay, and a quiet acceptance of mediocrity. The political class takes the blame, but the deeper structural issue lies within the civil service itself.

What Britain lacks is not intelligence, talent, or goodwill. It lacks skin in the game—the principle, championed by Nassim Nicholas Taleb, that decision‑makers must share in the consequences of their decisions. Without this, systems drift toward fragility, complacency, and moral hazard. Britain’s administrative state is a textbook example.

Today, senior officials can design policies, manage vast budgets, and oversee critical national programmes without any meaningful personal exposure to the outcomes. If a project collapses, no one is fired. If a regulatory framework fails, no one is held responsible. The incentives reward caution, process, and internal reputation—not judgement, delivery, or public value.

A reformed civil service must be built on a different foundation: authority matched with responsibility. This does not mean politicising the service or punishing honest mistakes. It means creating a structure where:

• Programme leaders have clear, public performance metrics

• Regulators live under the rules they create

• Senior officials face real consequences for persistent failure

• Innovation and prudent risk‑taking are rewarded, not penalised

Skin in the game is not about fear—it is about alignment. When decision‑makers share the risks and rewards of their choices, they behave differently: more grounded, more accountable, and more attuned to real‑world impact.

Britain cannot afford another generation of polite inertia. A state capable of delivering must be a state where responsibility is not abstract but personal. Only then will reform move from reports and reviews to results.