08 April 2005
Business leaders have 'no faith' in the government's efficiency programme or in its ability to deliver promises on reforms to public services, the CBI has warned.
The business lobby says an overwhelming 86% of its members believe that Sir Peter Gershon's £21.5bn efficiency savings target will be missed, while a mere 4% think it can be achieved.
At the same time, 69% of businesses lack confidence that progress is being made in reforming the public sector. A further 17% say they are neutral on the issue, and just 14% express any confidence in the government's ability to carry out its modernisation and reform agenda.
Firms have vented their frustration at the failure to improve performance across the public services.
Transport is the most derided, with 89% saying they are dissatisfied with progress, followed by education, with 74% criticising the pace of reform.
The NHS and criminal justice system fare little better: 72% and 69% respectively express frustration at their performance.
CBI director-general Sir Digby Jones was scathing in his assessment of the government's record. 'We want to see the efficiency review work, but there's been a tendency to fudge figures and make bold claims with little detail to back them up. Companies won't be taken in by government claims that lack transparency.'
Jones said that over the next five years the government should tackle as its top priorities 'the crisis in our transport system' and failures in the education system.
'Business expansion is being impeded by poor transport infrastructure, recruitment is being hampered by skills' shortages and employees have to wait too long for hospital treatment,' Jones added.
The CBI's study was based on the views of more than 400 companies.
The research has also revealed a widespread perception among businesses that when formulating policy the government listens to it far less than other groups.
Thirty-seven per cent of respondents say ministers take the views of trades unions into account to a large extent, but only 26% think they listen to taxpayers and just 12% believe they consider the views of businesses.
'Businesses feel they are being left out of the process and the government panders to the public sector and the unions ahead of other taxpayers' needs,' Jones said.
PFapr2005
