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UK faces enormous challenges, says top civil servant UK faces enormous challenges, says top civil servant
(about 6 hours later)
  
Britain's top civil servant has warned politicians face "enormous challenges" ahead on the economy, the EU and the future of the United Kingdom itself. Politicians face "enormous challenges" ahead on the economy, the EU and the future of the United Kingdom itself, Britain's top civil servant has warned.
Sir Gus O'Donnell, who stands down as cabinet secretary on 1 January, tells the Daily Telegraph civil servants should take risks to aid the recovery.Sir Gus O'Donnell, who stands down as cabinet secretary on 1 January, tells the Daily Telegraph civil servants should take risks to aid the recovery.
And he said there were issues about how to make the EU operate "in the best interests of its citizens".And he said there were issues about how to make the EU operate "in the best interests of its citizens".
Sir Gus also warns of tensions which could lead to the break-up of the UK.Sir Gus also warns of tensions which could lead to the break-up of the UK.
Scotland's First Minister Alex Salmond has said he will call a referendum on independence in the second half of the SNP's four-year term in office at Holyrood.Scotland's First Minister Alex Salmond has said he will call a referendum on independence in the second half of the SNP's four-year term in office at Holyrood.
David Cameron has said he is committed to keeping the United Kingdom together.David Cameron has said he is committed to keeping the United Kingdom together.
'Cultural inertia''Cultural inertia'
In the article, Sir Gus outlines what he sees as the major issues facing British politicians today.In the article, Sir Gus outlines what he sees as the major issues facing British politicians today.
"Over the next few years there will be enormous challenges, such as whether to keep our kingdom united and how to make the EU operate in the best interests of its citizens," he writes."Over the next few years there will be enormous challenges, such as whether to keep our kingdom united and how to make the EU operate in the best interests of its citizens," he writes.
"But it is today's economy which poses arguably the biggest challenge.""But it is today's economy which poses arguably the biggest challenge."
Sir Gus said he was proud of the previous Labour government's decision not to join the euro.Sir Gus said he was proud of the previous Labour government's decision not to join the euro.
He also called on the civil service - of which he is the head - "to become a central part of [the economy's] recovery and growth".He also called on the civil service - of which he is the head - "to become a central part of [the economy's] recovery and growth".
"There is, of course, some cultural inertia to overcome, but there is a voracious appetite among departments to take on this challenge... We know we need to deliver better for less," he said."There is, of course, some cultural inertia to overcome, but there is a voracious appetite among departments to take on this challenge... We know we need to deliver better for less," he said.
The outgoing cabinet secretary also touches on the issue of red tape and bureaucracy, and suggests MPs are too quick to create new legislation and regulations to solve problems.The outgoing cabinet secretary also touches on the issue of red tape and bureaucracy, and suggests MPs are too quick to create new legislation and regulations to solve problems.
Of the 1,200 regulations that have been examined so far, civil servants have recommended scrapping over half of them.Of the 1,200 regulations that have been examined so far, civil servants have recommended scrapping over half of them.
Ministers and officials should be "prepared to take more risks" and "learn from failure", he adds.Ministers and officials should be "prepared to take more risks" and "learn from failure", he adds.
Sir Gus became cabinet secretary in 2005 and when he steps down the post will be split into three.Sir Gus became cabinet secretary in 2005 and when he steps down the post will be split into three.
Number 10 permanent secretary Jeremy Heywood will succeed him as cabinet secretary.Number 10 permanent secretary Jeremy Heywood will succeed him as cabinet secretary.
His role as head of the civil service will go to Bob Kerslake, currently permanent secretary of the Communities and Local Government Department, while the role of permanent secretary at the Cabinet Office will go to Ian Watmore, a former chief executive of the Football Association.His role as head of the civil service will go to Bob Kerslake, currently permanent secretary of the Communities and Local Government Department, while the role of permanent secretary at the Cabinet Office will go to Ian Watmore, a former chief executive of the Football Association.