Laura Sharman 30 October 2014

CBI calls for new fiscal rule on public spending

CBI calls for new fiscal rule on public spending image

Business leaders are calling for a new fiscal rule to ensure the government never spends more than it earns on public services.

In a new report, the CBI argues that public spending should never be allowed to outstrip revenue receipts once the deficit is cleared. It also calls for the re-shaping of public services rather than blanket budget cuts.

Our future public services: a challenge for us all report argues that reforms such as putting more services online, physically co-locating some services and integrating social care and health budgets would better help public need. It also calls for more focus on policies that tackle underlying problems as opposed to high levels of welfare spending.

CBI deputy director-general, Katja Hall, said: ‘Tinkering around the edges of public service reform will not meet the challenges we face.

‘It will take bold decisions like integrating health and social care to help address the pressures that an ageing population places on our public services, especially the NHS.’

CBI argues that public spending should be held at 38% GDP over the economic cycle, with a cross-party commission set up to unlock long-term reforms. It also calls for baseline performance metrics for all public services early in the next Parliament.

‘We want to see reform underpinned by a new fiscal rule ensuring that public spending never outstrips revenue receipts once the deficit is eliminated in 2018/19,’ added Ms Hall.

‘And a cross-party commission, with citizen representation, should be set up to answer tough questions about how we overhaul our public services for the 21st Century and beyond.’

SIGN UP
For your free daily news bulletin
Highways jobs

Finance Assistant

City of York Council
£18,865 - £20,013 per annum
The successful candidate will... York, North Yorkshire
Recuriter: City of York Council

Social Worker - Children With Disabilities

Essex County Council
£30906 - £42254 per annum + + Free Parking and Benefits Package
Social Worker - Children With Disabilities - ChelmsfordPermanent Full Time£30,906 to £42,254 per annumClosing Date
Recuriter: Essex County Council

Strategy Officer

Barnet London Borough Council
£39,867 - £44,790 Per Annum
An exciting opportunity for a Strategy Officer to support the Strategy Managers in delivering high-profile corporate projects and the development... Barnet (City/Town), London (Greater)
Recuriter: Barnet London Borough Council

Community Innovations & Funding Manager

Barnet London Borough Council
£47,841 - £52,886 Per Annum
An exciting opportunity for a Community Innovations & Funding Manager to help secure funding for Barnet’s voluntary sector, and... London (Greater)
Recuriter: Barnet London Borough Council

Commissioning Manager

Essex County Council
Negotiable
Commissioning ManagerPermanent, Full Timeup to £58,752 per annumLocation
Recuriter: Essex County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue