International evidence has shown that devolution of welfare-to-work schemes to local authorities can improve services – if funding and accountability challenges can be overcome.
Serco’s losses should be a wake-up call for both outsourcers and politicians. We need a review of the impact of and conditions for successful public sector outsourcing.
George Osborne’s statement included no details on tax rises or how to improve public sector efficiency, but the next government will likely need both to meet fiscal targets.
It’s probably time to give up on the idea that central government has the political will to fix local government’s problems. We need a bottom-up transformation of how local services work.
