Richard McCarthy quits government to join Capita Symonds

Richard McCarthy, the senior civil servant in charge of the controversial National Planning Policy Framework at the Department for Communities and Local Government, is to leave to join Capita Symonds.

McCarthy, director-general for neighbourhoods in the department, has announced he will leave his current role in November.

McCarthy, who joined the communities department in October 2003, is to take up a new role of executive director at Capita Symonds. He will work across both Capita Symonds and its parent company Capita Group, including some of the firm’s work on public sector contracts.

Richard McCarthy said: “This is a fantastic opportunity to see if I can do it in the private sector. I have been thinking about making a move in the recent period and was head-hunted at the start of the year. But it’s been entirely my own choice, and if it hadn’t happened I’d be continuing as CLG director general.”

His departure comes at a sensitive time for the government, with growing political pressure following continued criticism of the draft planning policy framework from environmental groups and residents. It also follows speculation over his relationship with departmental permanent secretary Sir Bob Kerslake, who had previously reported in to McCarthy in his former role as chief executive of the HCA.

He said: “[Sir] Bob [Kerslake] and I worked well together when at the HCA and that productive relationship has continued while he has been at the department.”

“There is absolutely no connection between this and the timing of planning reform. When an opportunity comes you can’t wait for everything to finish before moving on. I’m proud to have made the contribution to planning reform in my eight years at the department.”

McCarthy will leave his post on November 10th and take up his position at Capita in February, following a compulsory three month rest period for departing senior civil servants. His appointment at Capita has been approved by the civil service for possible conflicts of interest, but any work with the communities department will be limited under civil service rules.

McCarthy’s role will be advertised in due course, according to CLG and is not related to the ongoing restructure at the department. During the recruitment process Andrew Campbell, currently director of strategy and performance, will assume McCarthy’s responsibilities.

Over the last eight years McCarthy has been a key figure behind a raft government housing and planning policies, including the redevelopment of the Thames Gateway, the creation of the Homes and Communities Agency and Gordon Brown’s ill-fated eco-towns drive.

Prior to joining the communities department, Richard McCarthy was the chief executive of the Peabody Trust, a major housing association and regeneration agency. He also held senior positions with the Horizon Housing Group, Hyde Housing Association Group and the National Housing Federation, which he chaired from 2000-2003.

In a statement on the departmental intranet McCarthy said:”I’ve had a fantastic eight years as a Director-General at DCLG. It’s been an extraordinary period. However, the opportunity to take on this new role, with the fresh challenges that it presents me, is too good to refuse.”

Sir Bob Kerslake, permanent secretary at CLG, said: “I will be very sorry to see Richard go. He’s made a huge contribution to the work of the Department over a long period, and has led on the introduction of major changes in housing, planning and regeneration, including two substantial parliamentary bills.”