03 March 2010
Source: The MJ (Local government is rapidly changing - to be effective in this environment it is essential that you have access to the most up-to-date and detailed information. <strong>The MJ</strong> is the magazine that will help you to come up with practical solutions to everyday issues in this changing landscape. Every week <strong>The MJ</strong> publishes the latest news, features, editorial and industry comment on the following key issues: Management * Legislation * The White Paper * The Lyon’s Report * Regional government * CPAs * Business * Finance * Education * Adult and Children’s Services * E Government *  And much more…)

Conservative faultlines open over public spending cuts


Michael Burton

Last weekend’s Conservative spring conference in Brighton saw pledges by party leader, David Cameron, to tackle the budget deficit immediately – yet, at the same time, increase spending on the NHS, pensions and early years. Michael Burton, who attended the event, reports.

For the final rally before a crucial general election, the Conservative Party spring conference was a surprisingly low-key event.
Unable to use the Brighton Conference Centre, which had been booked for the weekend by TV show The X Factor, the Tories moved to the nearby Metropole Hotel, shoe-horning their event into its ballroom.

Tory leader David Cameron addresses the conference
Tory leader David Cameron addresses the conference
The atmosphere among the delegates was, therefore, not so much of a party preparing itself for power but of a professional society’s weekend networking conference in a seaside hotel.

Only during the finale of the second day, when party leader, David Cameron, made his unscripted speech, did a sense of history in the making, of a party scenting victory, flood the ballroom, by now overflowing with delegates, its previously-deserted balcony floor jammed with Tory officials, and press gazing down at the leader on the stage below.

A further problem was the presentational weakness of its shadow Cabinet, most of whom, reading woodenly from scripts, were unable to inspire their audience. Only Ken Clarke, speaking without notes, gave a barmstorming performance.

And, by making this event a focus on the shadow Cabinet, organisers missed an opportunity to showcase the party’s strengths, its dominance of local government, and the impact of the Cameron modernisation agenda on the profile of its candidates.

Shadow communities secretary, Caroline Spelman, praised Tory councils in showing how a Conservative Government could work, and added: ‘They can teach central government a thing or two about efficiency savings.’ But where were they, other than a panel discussion with three local leaders?

There was no [London mayor] Boris Johnson or other leaders from their flagship councils in the plenaries, brandishing their efficiency savings and their council tax freezes.

A faultline running through the weekend’s event was the party’s policy on how to tackle the public sector deficit. Shadow ministers were clear that it had to be addressed immediately.

Mr Cameron said in his unscripted speech: ‘Labour say that if we cut anything, we’ll take the country back into recession. We say that’s nonsense, that if we don’t do anything, the country will go back into deep recession.

‘We have to roll up our sleeves and sort out this deficit. The longer we leave it the worse it will get.’

Shadow chancellor, George Osborne, insisted that because the Tories promised to address the debt, ‘international investors’ would, therefore, be easy on the UK economy.

He added, in reference to calls to postpone any cuts until 2011: ‘Are they really saying that a new government, with the credit rating agencies hovering and the markets waiting, should delay taking any action on the deficit until spring 2011? How credible or sensible is that?’

He would set up an Office for Budget Responsibility, with ‘no more hiding PFI and pension liabilities off the balance sheet,’ and hold an emergency budget in the first 50 days of coming to office.

He added: ‘This will set overall spending levels. And it will include measures that will make a start this year in reducing the deficit.’
Other than a public sector pay freeze, a £50,000 cap on public sector pensions, a cut in tax credits to high-earners, a cut in MPs and ministers’ salaries, and an increase in the pension age, he gave no details of which departments would be hit.

At the same time he, and his colleagues, also made spending pledges elsewhere.

Both he and Mr Cameron promised not to cut the NHS. Shadow health secretary, Andrew Lansley, went further. Recognising demographic and technological pressures, he promised ‘to increase health spending in real terms, year by year, through the next parliament’.

He pledged to impose ring-fenced funds to ‘local organisations’ for improving public health, such as reducing health inequalities and teenage pregnancies. There was also a commitment to bringing in 4,200 more health visitors to help Sure Start assist new families.
Mr Cameron also surprised the audience by renewing a commitment to recognising marriage in the tax system, originally put on hold because of its potential cost. He promised to link pensions back to earnings, maintaining the extra costs would be paid for by increasing the pension age 12 months from 2016.

Elsewhere, shadow justice secretary, Dominic Grieve, said a Conservative Government would ‘ensure we have prison capacity so the early release system is consigned to history.’

Shadow Treasury chief secretary, Philip Hammond, promised more university places, and Ms Spelman reiterated her pledge to match council tax from all new housing for six years, and for affordable housing, match it to the tune of 12.5%. She also repeated Mr Osborne’s commitment to match fund a rise of 2.5% in council tax for two years, thereby freezing it.

Considering it unlikely that the Conservatives would cut defence or schools, all this adds up to a foreboding that the cuts will fall disproportionally on local government. Last year, Audit Commission chief executive, Steve Bundred, said there was no reason why the NHS and education, which had received the lion’s share of the last decade’s public spending rises, should not now deliver their share of savings.

Last week, LSE expert, Tony Travers, suggested that if a blanket freeze was shared across all Whitehall departments, the chancellor’s deficit-reduction targets could be met (The MJ, 25 February). The Conservatives have made this prospect unlikely.

While there were many pledges to cut red tape and targets in local government and health, the words ‘Total Place’ was brought up just once by panel guest, Stephen Castle of Essex CC, in Ms Spelman’s session. She turned to the audience and said: ‘In case you haven’t heard of it, it’s about knowing what to spend at local level, and it’s eye-opening.’

Considering the potential savings already identified by the pilots, many of them Conservative councils, the absence of Total Place in the speeches about reducing spending while boosting the frontline, was curious. Surely, it cannot only be because it is a government initiative?

The conference also struck, at times, an uneasy balance between trying to project the Cameron modernisation agenda, and humour its core audience.

There was always immediate applause at promises to reduce immigration, get tough on criminals, and cut welfare to people who refused to take up jobs, although none of these are now uniquely Tory policies.

Yet shadow justice secretary, Dominic Grieve, said there needed to be a ‘rehabilitation revolution’ to provide more support for ex-prisoners and reduce re-offending; shadow home secretary, Chris Grayling, insisted there needed to be much more investment in early years to reduce long-term costs in youth justice; and shadow families minister, Maria Miller, promised 4,200 extra health visitors to boost support for families via Sure Start.
These were all sound, Total Place principles.




Your comments

There are currently no comments, be the first!




 Back     Top of page

Advert