15 October 2004
Collective choice, co-payments and targeted procurement are likely to be at the heart of Labour's next manifesto, according to a former Cabinet minister close to Blairite thinking.
Stephen Byers told an audience of local government chief executives this week that Labour needed a 'new settlement', based on personalisation as well as equality. Central government would have to cede power to local areas if it were to regain the public's trust.
Byers said collective choice could be effective in areas such as policing, community safety and leisure. Direct elections could be held for police boards, primary care trusts and community councils.
'If a particular locality wants to have more police and they are prepared to pay an additional sum each year, should they be able to do that?' he asked.
The former transport and local government secretary went further by suggesting that local people should have the power to change supplier if a contractor performed badly.
He said that co-payments, where users make a contribution to the cost of a service, would suit areas such as childcare and social services. In some cases, the basic service could be provided for free but enhancements would require a top-up from the user. Byers pursued his argument by advocating the use of the public sector's purchasing power to benefit local communities.
One way would be to offer contracts to local firms. 'If you look at government procurement it's a few big players who scoop the jackpot as far as contracts are concerned. The small player finds it fantastically difficult even to get an entry into the market,' he said.
Byers denied that his wide-ranging speech at the Society of Local Authority Chief Executives conference in Brighton was 'flying a kite' for the government, but added that his views 'do reflect the general direction of thinking at the top of government'.
He said he spoke as a friend of local government, but warned that the government's new localism agenda could be a threat to councils: 'You need to be aware that some of this debate could exclude local authorities from what rightly should be their brief and ambit.'
The conference earlier heard from local government minister Nick Raynsford. He warned councils to target council tax rises at 'low single figures'. Otherwise, he would 'have no hesitation in using our capping powers again'.
PFoct2004
