Political battle lines were drawn over public funding this week when ministers outlined plans to fund personalised services, while the Conservatives revealed ambitions to restrict state spending.
Preparing for an election by May 2010, prime minister Gordon Brown published a strategy document on
10 March, outlining government ambitions for public sector reforms beyond the vote – including proposals for new education and health services.
Publication of the Cabinet Office’s Working together report followed revelations from shadow chancellor, George Osborne, that the Conservatives, currently ahead in opinion polls, would place tight restrictions on public spending to cover the cost of Mr Brown’s extra borrowing.
Although Mr Osborne avoided talk of public spending cuts, the announcements hint at vastly-different party manifestos.
Speaking to The MJ, Cabinet Office minister, Liam Byrne, said: ‘This sets a clear dividing line between ourselves and the Conservatives. We’re angry about Conservative plans to cut back on public services – for example, the plan to let failing schools “wither on the vine”.
‘We would accelerate public service investment, but as we do that we also believe we need to accelerate public service reforms.’
The report confirms a vast Labour reform agenda, including plans to enable residents to rate education and health services online, and allowing people to compare delivery of local public services, including policing.
Communities secretary, Hazel Blears, told The MJ: ‘This will mean people and local communities can… push any issue they think is of importance up the priority list.’
The reforms would be partly funded by a huge efficiency drive and innovative local delivery chains, Mr Byrne confirmed.
He said: ‘I’ve always been a passionate believer in local leaders. If we’re going to free up frontline staff to deliver [reformed services], that empowers local government to do things differently. It will require local leaders to use their imagination and to be flexible.
‘We’re giving them the freedom to translate their local ambitions into realities.’
Labour’s ambitious proposals face a stern test, however. The strategy document was published on the day a survey revealed 55% of public service managers believe they will no longer be able to deliver an acceptable level of service within five years.
A separate report by consultant PWC claimed Britain faced a ‘fiscal gap’ of £43bn by 2013. Up to £20bn could be clawed back through an intensified public sector efficiency programme, but service cuts could follow, if ministers could not plug the gap.
Speaking in Birmingham on 6 March, Mr Osborne hinted a potential Conservative Government would entertain spending cuts to balance the books.
He added: ‘We will come off Labour’s unrealistic spending plans. We will bring about major reforms to the culture of Whitehall, putting emphasis on value for money. We will overhaul the way government spending is controlled by creating an Office of Budget Responsibility to act as a rod for the back of all future chancellors,’ he said.
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