Public policy

Leviathan

Cameron's crusade

The reform wars begin in earnest

Feb 11th 2011, 16:45 by A. McE | LONDON

WHETHER they're believers in the Big Society or just dedicated deficit-slashers, members of the British government are sounding rather more worried this week about the backlash their plans to cut public spending has provoked. From Liberal Democrat councillors declaring their anomosity to the reforms (inconveniently for Nick Clegg as he defends his volte-face on tuition fees), to Dame Elizabeth Hoodless's warning of the dangers to the charitable and voluntary sectors, a policy intended to galvanise localities and push decision-making away from the centre is instead causing problems to pile up on the government's doorstep. 

It needs a clearer strategy and a better approach to dealing the backlash. David Cameron is not the only leader to find public-sector reform to be one of the most labour-intensive and emotive activities to manage. Germany's former Chancellor Gerhard Schröder admitted in his memoirs that the backlash to the Hartz reforms wore him down. Tony Blair spoke of "scars on my back" from his own attempts to reform the state. Mr Cameron cannnot for ever remain above the fray.

As a student of recent Tory political history, he is well aware of the mismanagement of the poll tax under Margaret Thatcher. A measure intended to make local councils more accountable ended up triggering a powerful counterattack on central government, resulting in the shredding of her authority. That is why tensions over the Big Society (which we discuss in detail in this week's issue) are so potent. Too much emphasis on Big Society localism, instigated alongside the cuts, could result in Mr Cameron being seen as the Number 10 slasher. Too little, and his vision of a less mighty state, supplemented by more individual and voluntary associations, will falter. So far the tone of this argument has been polite. That won't last.

Should the government step in, for instance, if council chiefs cut services for disabled children, while hanging onto highly paid officials? Some proponents of the Big Society, such as the social entrepreneur Danny Kruger, think it should insist that front-line cuts are matched by personnel reductions. So far though, Mr Cameron's team is loth to put Whitehall's boot into councils whose cuts may be motivated more by politics, and a desire to make the government look bad, than a sincere effort to cut costs. But how long can they hold out without stepping up the fight?

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bampbs wrote:
Feb 11th 2011 5:31 GMT

I think it would have been wiser to wait a year or two, or at least to phase in slowly over a like period.

Doug Pascover wrote:
Feb 11th 2011 6:14 GMT

The public sector should always be in a state of reform but getting from glib to good policy is the catch. If I were advising Cameron and Clegg, I might offer bampbs suggestion- comment on blogs for a couple years and see where that takes you.

Marousya wrote:
Feb 12th 2011 6:13 GMT

Public Policy Leviathan - as someone who works for a Council in a Northern City I object strongly to the seeming suggestion in the last paragraph that there are council officials or councillors (of any party)that would senselessly prioritize officials' pay above social care services for the exceptionally vulnerable like disabled children or worse still deliberately cut this sort of service to further their own political cause. I think anyone who makes such a suggestion that this is an issue should be able to back it up with some very solid evidence.

Generally, I have been very disappointed in the comparative weakness of coverage in the Economist of the complexity and scale of the challenge facing local government (especially those authorities with high levels of deprivation). More so because it requires finance experts of some caliber to get to the bottom of hideously complex local government finance issues and make sense of them for readers. If the Economist can't do it - who can?

I would like to throw down the gauntlet to the Economist - would you be able to bring your usual sharp and shrewd eye to analysing the financial and economic challenges facing the big Northern Cities over coming years, including a review of serious policy proposals for how they might be best met?

There is a singular and frightening lack of good well-informed debate in the national media on this critical issue, which in the near future is going to start to unfold rapidly and dramatically impact on the lives of significant part of the British population and none more so than the vulnerable living in deprived regions.

viertwaalf wrote:
Feb 15th 2011 5:19 GMT

Anomosity [sic]?

jomiku wrote:
Feb 15th 2011 9:33 GMT

May I remind you there are examples of devolved authority. As a skeptic, let me note one awful experience: the devolution of public school control to local communities in some large US cities. The "community schools" movement insisted that local control would be more responsive to local needs, would save money and be more efficient. Turned out the opposite; local politicians discovered the ancient truth there is value in controlling local resources and the schools were materially, even substantially damaged by political interference, patronage and waste.

My point is shifting authority has consequences that tend to be ignored when the political tides are for devolving authority. The period of devolution is then followed by consolidation intended to remedy the problems created by devolution. Each political movement ignores the reality of how human beings work.

Marousya wrote:
Feb 16th 2011 7:56 GMT

Thank you Jomiku - I think your point is a very valid one.

I do work for a council and I am a paid-up believer in the value of good local government. My concern however, is not so much with a devolution argument but with the quality of the debate in general.

There is a lot of distraction in the media around what I believe are to date unfounded accusations of 'political cuts'. Happily I have not come across of a local politician of any party or officer who would allow the deliberate slashing of services to the vulnerable like disabled children to make a political point. This is a very serious accusation and should be backed up by hard evidence. If such evidence exists it absolutely has to be brought forward and action taken.

What is more concerning is the lack of coherence in the Localism Bill which does not delineate clear lines of responsibility between local and central government - central control of budgets and finance with local responsibility for decision making in an increasingly 'devolved' environment is a recipe for weak accountability and the throwing of blame around when services are under extreme pressure.

This is not to mention the announced abolition of the Audit Commission with no clear proposals for its replacement. Hence the control environment for local government is undergoing huge upheaval and uncertainty at the same time when local government is under enormous pressure and the possibility of critical service failure for vulnerable individuals is inevitably more likely. Afterall, such failure happens in the 'good times' too. How changes to the control environment are going to be managed in coming years alongside major reform and budgetary cuts really needs looking at.

Finally, there is the added critical issue that the rate of change and speed of cuts is much greater in deprived regions where there is a concentration of more vulnerable parts of the population. Whatever reform model you advocate for services that are relied on by vulnerable groups, I think it is undeniable that increasing the rate of change in their services translates into increased risk for the individuals concerned. How should this risk be managed? If central government needs the savings quickly, then perhaps it needs to buttress critical provision for the vulnerable somehow - even with more central control. This is a serious risk issue for deprived areas and needs a proper debate no matter which part of the political spectrum you are on.

My current position is simply to advocate for a better quality of debate in the national media on the challenges facing local government in deprived regions.

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About Leviathan

In this blog, our public policy editor reports on how governments in Britain and beyond are rethinking and reforming the state's role in public services, the arts and life in general. The blog takes its name from Thomas Hobbes's book of 1651, which remains one of the most influential examinations of the relationship between government and society.

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