Public sector

The birth of the White Paper on public service reform was a tortuous business — but, now it’s been out for several months, the government is keen to make the most of it. David Cameron is launching an ‘updated’ version today, with a few new proposals contained therein. He also has an article in the Telegraph outlining those ideas, including the one that seems to be getting the most attention: draft legislation to give people a ‘right to choose’ their public services. It feels like both an important and potentially inconsequential moment all at once. Enshrining choice in the laws of this land is a powerful symbol that people shouldn’t

George Osborne has just fired the first shot in the fight over the 2012 Budget. His decision to introduce local pay for the 160,000 civil servants coming off the public sector pay freeze is, as is often the case with Chancellor Osborne, both an economic and a political move. The economic case for local pay is straightforward. National pay rates mean that public sector workers are relatively underpaid in prosperous areas of the country and relatively overpaid in deprived areas. Pay that reflected local conditions would make for a more balanced economy, helping the private sector in those parts of the country where the public sector is currently dominant. But

So, new jobs figures out today. Which do you want first: the bad news, or the kind-of-alright news? The bad news is that employment’s showing no signs of growth: the total number in work has been stuck at 29.1 million since it fell there in the summer. It’s a touch better than the trough of 28.8 million we hit at the end of 2009, but still half a million below where we were when the recession hit. And we’re showing no signs of getting there any time soon: And the not-so-bad news? Unemployment’s slightly down on last month, which was slightly down on the month before. It’s not a big

Do you remember the great parliamentary battle over privatisation of police services? Me neither, which is why Theresa May, the Home Secretary, is proving a better minister than Andrew Lansley, the Health Secretary. The drive for savings in the police budget is leading two constabularies, West Midlands and Surrey, to outsource certain services. The Guardian has got hold of the tender documents and splashed with the story today. Yvette Cooper is angry — but, crucially, there’s nothing she can do. Theresa May doesn’t need legislation to enact this reform; it’s not even being done under orders of the Home Office. This is two police forces who would rather save money

The A4e scandal is getting worse. Emma Harrison has quit as David Cameron’s back-to-work tsar, the police are still investigating a case discovered last year and there’s a suggestion their investigation is widening. This is, for David Cameron, the dark side of the Big Society. In my Daily Telegraph column today, I explain why. ‘The Big Society’ is a silly name for a good idea: that lots of companies, charities, etc will help provide government services. They are given freedom to innovate, to create — and the freedom to get things badly wrong. This is the freedom which A4e seems to have availed itself of. It grew like crazy, perhaps

The coalition’s plan to leave the Public and Commercial Services Union isolated in its opposition to the proposed changes to public sector pensions has had several setbacks today. The Unite union, which is a major Labour donor, has declared that the government’s offer on NHS pensions is inadequate. This suggests that Unite members in the health service, of whom there are 100,000, could go out on strike again soon. Another worry for the government is that the British Medical Association, the doctors’ trade union, is indicating that it might hold a strike ballot once it has canvassed the views of its members. Ultimately, I think the government can win the

If you listened to PMQs yesterday, then you’ll have heard two very different accounts of what’s happening in the labour market right now. Had Ed Miliband been able to get anyone’s attention, they’d have heard him say: ‘over the last three months, for every job being created in the private sector, thirteen are being lost in the public sector.’ Cameron’s response: ‘Since the election, in the private sector there have been 581,000 extra jobs. In the public sector, he’s right, we have lost 336,000 jobs.’ According to the Labour leader’s figures, public sector losses are far greater than private sector growth. But according to Cameron’s, the private sector is more

If I were a teacher, I’d be on strike today. Public sector workers are being asked — in what is now a well-rehearsed soundbite — to work longer, receive less, and pay more. In these austere times, with deficit reduction a necessity,  two of those three aims might be reasonable. But doing all three at once, and conflating the package with the spurious notion that public sector pensions are ‘unsustainable’, justifies the direct action being taken today.   The rise in contribution rates — in effect a three per cent tax rise — will be especially hard to bear for those on modest salaries who are already facing a prolonged

Next week, millions of public sector workers will go on strike over proposed changes to their pensions. And yet, even after the reforms, those pensions will still be far more generous than most taxpayers working in the private sector — who will pick up the bill — can expect. It’s going to be hard to convince people of the ‘fairness’ of paying more into public sector pensions than they do into their own. The unions will do their best though. And the real irony is in how their campaigns are funded. Guess who is paying for unions to organise strikes that will disrupt the public services that taxpayers pay for?

Francis Maude presents himself as a man trying to help the unions out in today’s Financial Times. Some unions say they have to go ahead with strikes on November 30 – even though negotiations on pension changes are still going on – or else they’d lose their mandate for any future strikes and have to conduct a whole new ballot. Wagging an almost parental finger, Maude tells the unions: ‘You shouldn’t have got yourself into this mess but we’re willing to help you out because we want to protect the public. I can’t imagine any employer in the public sector would say if you have a token strike of a