Report of the Independent Surveillance Review
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3.18
The NSC process for Priorities for Intelligence Collection (PICs) sets out the priorities
of SIS and GCHQ. The PICs are divided geographically and thematically and are set with
a three-year outlook. They are reviewed annually. The intelligence agencies can also
be set mid-year requirements in the form of a Temporary Intelligence Watch, ordered
by the chairman of the JIC, in response to events unforeseen by existing PICs (such
as the Ukraine crisis, Arab Spring or the emergence of ISIL). This ensures the process
can be flexible when necessary. The PICs are informed by statements of demand
from government departments, and take the form of detailed questions that align
with specific policy objectives. They do not dictate what specific resources should be
allocated; however, the intelligence agencies use the PICs to prioritise and guide their
own resourcing decisions.
3.19
There have been some changes to the central-government machinery on nationalsecurity matters over the past five years. In January 2011, the prime minister and the
Cabinet secretary asked the national security adviser and the chairman of the JIC to
review how the central national-security and intelligence machinery and structures could
best support the NSC. The key recommendation from the review was that the NSC’s
priorities should be the lead driver of the JIC agenda, following as closely as possible
the NSC’s agenda and timetable. The NSC meeting of senior officials was considered
best placed to oversee the tasking of the JIC, in line with its core role of setting strategic
direction for the NSC.
Functions of the Security and Intelligence Agencies
GCHQ
3.20
Gathering intelligence from communications is the core of GCHQ’s activities. However,
GCHQ’s intelligence mission is not self-driven; its intelligence requirements and priorities
are set by government ministers and all of GCHQ’s activity has ministerial endorsement.
The organisation believes it is right that only ministers should make such decisions,
judging intelligence priorities based on the likelihood of threats on the National Risk
Register. GCHQ’s activity includes counter-terrorism, cyber and military support (10
per cent of GCHQ’s work force are serving members of the armed forces). Intelligence
gathering from communications may be focused on overseas, ‘upstream’ threats
or – increasingly in collaboration with its sister agencies – on domestic intelligence
requirements. A large proportion of GCHQ’s budget is spent on technology – including
investment in capabilities developed by commercial technology companies – unusually
so for a public-sector body.
3.21
GCHQ are also the government’s lead agency on cyber-security and information assurance.
In this regard, GCHQ therefore works very closely with government to ensure future data
security, and its technology specialists frequently advise industry, law enforcement and
government on cyber-security. Examples of this assistance include help with the rolling
out of the Universal Credit benefit system (which will put payments equivalent to 8 per