Public sector

Wednesday

James Forsyth

Another dangerous Quango in the offing

This government’s love of quangos reached new heights in today’s Budget when Darling announced the creation of a ‘credit adjudicator service’. This will allow companies who feel they have been unfairly denied credit by their bank to appeal the decision to the credit adjudicator service which will have the legal power to order the bank to lend the money.    The Treasury is quick to stress that businesses will have to have claims referred to the credit adjudicator service by their regional business body. But this quango, which will cost five million pounds a year to run, strikes me as a quite absurd attempt to second guess commercial lending decisions.

Tuesday

Andrew Haldenby

Alistair Darling needs to tell us that frontline services will be affected by cuts

The credibility of the Chancellor’s Budget tomorrow depends on the policy changes that he announces for the public sector.  It won’t be enough for him just to announce a series of public spending totals that decline gracefully in the years to come.  Within some broad limits, anyone can do that.  What counts is whether he backs it up with practical ideas to target the big government costs, which lie in two places – benefits and the public sector workforce. In retrospect, the general election has fallen at the wrong time for the UK public finances.  Since early last year, the prospect of an early election has allowed the Government to

Saturday

Martin Bright

How Does the Public Sector Deliver?

Hats off to my good friend Julia Hobsbawm for sparking a debate over delivery in the public sector via her Editorial Intelligence organisation. I had the pleasure of chairing a discussion as part of her D4Deliver campaign on Thursday and you can listen to the podcast here. The top-notch panel included Mary Riddell of the Daily Telegraph, Chris Melvin, Chief Executive of Reed in Partnership and Octavius Black, who runs Mind Gym. But the tone was set by Nick Jarman, who was brought in as Interim Director of Children’s Services at beleaguered Doncaster Council after a series of scandals. Before we began he said his local authority could have provided

Wednesday

Fraser Nelson

The cost of Brown’s propaganda splurge

Gordon Brown has been shameless in using the tools of state to advance his party political objectives – to him, government is electoral war by other means. Anyone who has turned on a commercial radio station recently will have worked out his latest trick: a mass propaganda splurge before an election campaign. Get on a bus, and it can be 100 percent state adverts – advising how Big Brother will help you get a job, buy a car, see off door-to-door salesmen, give you a job in the prison services – anything you want. We at The Spectator have tracked down the figures that show the extent of all this.

Monday

David Blackburn

Osborne colours the water blue

George Osborne has long been in the City’s crosshairs, and criticism peaked last week when less than a quarter of a City panel believe he has the mettle to be Chancellor. Today, Osborne fights back in the FT, with a piece co-penned by Jeffrey Sachs. The pair set out an argument for immediate ‘frugality’, rather than ‘cuts’, and damn Brown’s economic policy as short-term politicking: ‘We are sceptical that a sustainable economic recovery can be based on either reinflating the sectors that have declined or believing future job creation can come simply from the public sector payroll.’ Two thirds of jobs created between 1997 and 2007 were in the public

Saturday

James Forsyth

Hague warns the country: If you don’t vote Conservative this time, it will be too late to reverse Britain’s decline

As this morning papers’ show, the Tories know that their spring conference here in Brighton offers them a chance to change the narrative of this campaign, to get back on the front foot. William Hague’s speech, the first big set-piece of the event, tried to frame the choice facing the country at the election as being between ‘change or ruin’. Hague warned that if the country doesn’t return a Conservative government at this election, ‘it will be too late…too late to reverse the decline: the debt will be too big, the bureaucracy too bloated, the small businesses too stifled, the slope Britain is sliding down will be too steep.’ Labour

Wednesday

David Blackburn

Purnell’s ‘empowerment’ pledge falls flat

James Purnell envisages a society of ‘empowered’ voters left to make decisions for themselves. It is an attractive concept – individual responsibility displacing state directives will save money and, providing those running the institutions are competent, improve public services. Writing in the Times, Purnell acknowledges that these concepts can become lost in the abstract terms in which they are expressed. What a pity he didn’t take his own advice – his article is an extended abstract noun. Not that it’s all bad. What power is there for parents who can’t afford to move close to a good school, he asks. His answer is broadly similar in tone and substance to

Friday

Peter Hoskin

Practice – not pay – may be the key to public sector workforce savings

Great article from my former boss, Andrew Haldenby of Reform, in today’s Telegraph.  He makes the general case that spending less on public services needn’t mean worse public service – far from it, in fact – and is scathing about the political class’s inability to soak up this lesson.  But it’s this passage which jumped out at me: “Another path to reform is to get more out of the workforce. Simple changes have tremendous results. If public-sector workers took the same amount of sick leave as those in the private sector, that would save 3 per cent of their wage bill, which adds up to £6 billion per year. If

Monday

Peter Hoskin

The widening public-private divide

The growth of the public sector isn’t exactly new news, but the figures attached to it are always pretty eyecatching.  These courtesy of Allister Heath in City AM: “MORE evidence of a growing public-private divide: 57 per cent of extra UK jobs created during 1997-2007 were either officially on the government’s payrolls or ‘para-state’, technically private but dependent on government funding. And that was before the private sector jobs bloodbath since 2008. Manchester University’s Centre for Research on Socio-Cultural Change calculates that of the 2.24m net new jobs created in 1997-2007, 1.27m were state or para-state (the latter includes the likes of rubbish collecting, government funded private nursery education and

Sunday

Peter Hoskin

Darling talks sense on public sector pay

How things change.  A few months ago, Alistair Darling would only go so far as to not rule out a public sector pay freeze.  By the time of the Pre-Budget Report, that became a 1 percent cap on pay rises.  And now, in an interview with the Sunday Times, he’s talking explicitly about public sector pay cuts.  He cites the example of the private sector, where workers have accepted cuts to hang onto their jobs. It certainly makes sense.  Wages make up such a hefty proportion of public spending, that any serious plan to cut the deficit will have to take them into account.  Besides, there’s the fairness point as

Friday

James Forsyth

What possible justification can there be for this?

From The Guardian’s write up of the latest TPA report on public sector pay: “Those earning more than the prime minister include Professor Salman Rawaf, the director of public health in Wandsworth, who has a package of up to £370,550” I can accept that some people in the public sector with certain particularly valubale skills might have to be paid more than the PM. But I find it hard to see why Wandsworth is offering its director of public health a package worth more than a third of a million pounds. One hopes that the Tory policy which will see the Chancellor having to sign off on any public servant

Tuesday

Peter Hoskin

Nothing exceptional, but a job well done by Osborne

They stopped letting people into the conference hall for George Osborne’s speech long before the Shadow Chancellor took to the platform – it was packed, not even standing room.  There was certainly an anticipatory buzz among Tory supporters, particularly after some of the policy announcements trailed in the papers this morning.  One delegate assured me that “this is the speech when George will convince the nation that he’s the man to deal with Brown’s mess.”  Everyone seemed pretty breathless. So did he pull it off?  Well, my immediate response is “yes and no”.  Probably more “yes” than “no”.  There was much that was impressive in the speech.  Osborne touched on

Peter Hoskin

How are the Tories responding to Labour’s pay freeze?

So what do the Tories make of Alistair Darling’s limelight-grabbing decision to freeze public sector pay? The ones I’ve spoken to seem perfectly relaxed with it. A little bit annoyed perhaps: wouldn’t you be, if your opponents appeared to cynically delay an announcement that they could have made during their own party conference last week?  But they’re confident that the public will see through the stunt, and that it will actually reflect badly on Brown & Co.  On top of that, the Tories are sure that Labour will make little headway in a news agenda that will be dominated by Tory announcements for the next few days. It’s hard to

Thursday

Peter Hoskin

A question of commitment

Punchy stuff from Michael Fallon in today’s Telegraph.  The Tory deputy chairman of the Treasury Select Committee sets out five ways for his party to “get real” over public spending cuts.  Over at ConservativeHome, Tim Montgomerie dwells on perhaps the most striking of those five: a recommendation that the Tories should think again about national pay bargaining in the public sector.  But, for those interested in interal Tory politics, Fallon’s first point also stands out: “No, if we really want to cut public spending, there are five things we need to do. The first is to convince the shadow cabinet. There’s little evidence that it has the faintest idea of

Thursday

Peter Hoskin

There could be a pay freeze, after all

Over at the FT’s Westminster blog, Jim Pickard picks up on an important comment from Stephen Timms, the Treasury minister, speaking at a committee meeting this morning.  Timms suggests that Treasury hasn’t ruled out a public sector pay freeze, as recommended by the Audit Commission’s Steve Bundred.  Here are the minister’s words:   “It’s certain the case that our pay policy needs to reflect the wider economic circumstances … we will be deciding on pay policy over the next few weeks, the policy has got to be fair to people who work in the public sector just as we have to be fair to everybody else. The suggestion by Steve

Wednesday

James Forsyth

The Tories must be prepared to launch a reverse march through the institutions

Sir Hugh Orde, the new president of ACPO, has predictably come out against elected police chiefs. Andrew Sparrow  has the key extract from his speech: “If people seriously think some form of elected individual is better placed to oversee policing than the current structure, then I am very interested in the detail of how that is going to work – and happy to have that debate. Every professional bone in my body tells me it is a bad idea that could drive a coach and horses through the current model of accountability and add nothing but confusion. I note that our partners here in the [Association of Police Authorities] are

Tuesday

Peter Hoskin

To freeze or not to freeze?

The question of whether or not to freeze public sector pay has had a fair bit of airtime over the past few days.  In his interview at the weekend, Alistair Darling seemed to take a hard-line on the issue – and most outlets wrote it up as him not ruling out a freeze.  But, via today’s Times, “sources close to [Darling]” say that he won’t re-open wage deals to introduce a freeze.  While, for his part, David Cameron is also claiming that a Tory government wouldn’t order a freeze of public sector pay.  The politics of the situation is plain: neither side wants to seem especially tough on public sector