13 June 2003
The government 'talks the talk' on granting the public sector more local autonomy, but when problems arise it immediately reverts to its centralist tendencies, the director of the Institute for Public Policy Research told the CIPFA conference in Harrogate on June 11.
Matthew Taylor cited the schools funding row as evidence of the resurgence of centralised 'dirigiste' policies. 'But when there is trouble, its first instinct – for example, over the schools funding mess – is to lash out at local authorities and call for more earmarking of funds.'
He said while ministers were at risk of 'returning to the rhetoric of modernisation for modernisation's sake', they were also 'beating up on the unions'. Taylor called for a 'much more mature debate'.
Ministers need to let go of some 'ill-thought-out big targets, and abandon schemes and projects that are clearly not working'. There should be a 'people's spending review' to determine priorities, and local managers should face central intervention only if they fail to consult locally, he said.
In the same session, Robert Chote, director of the Institute for Fiscal Studies, predicted that the public finances could face some turbulent times.
Chancellor Gordon Brown's 'confident predictions' of a return to surplus, and of keeping within his 'golden rule', were not shared by the IFS and many other independent commentators, he said.
With the room for manoeuvre on increased borrowing severely limited, the government may need to raise taxes significantly in the run-up to the next Spending Review, Chote warned.
Public spending will have grown 4% annually between 1999 and 2006. 'But the question is, will the extra money have delivered the improvements voters want?' he asked.
PFjun2003
