The false divide between ‘protected' and ‘unprotected' departments is becoming a false economy.
In Whitehall, silos are easy to uphold. They literally exist in different buildings – health, education, local government, work and pensions. Each has separate teams, accountability and ministerial oversight. From inside the Treasury building, making tough decisions about spending allocations, it is logical to single out each department separately.
The consequences of artificial separation between departments have long been seeping into our collective experience of public provision
And so, over the years of spending restraint, the notion of departments protected from deep cuts (health and education) and those unprotected (the rest, including local government) has defined parameters. Now, once again, ahead of a stringent summer Spending Review, unprotected departments are being required to model up to 11% reductions.
On an individual level, there is a deep interconnection between the outcomes each department is responsible for. Education is a big determinant of job prospects. Unemployment impacts health, which is a barrier to employment. And lots of people out of work mean rising welfare costs.
The consequences of artificial separation between departments have long been seeping into our collective experience of public provision. Reduced spending in one area creates rising costs in another.
For example, as unprotected social care is pared back, unmet demand pops up in protected, but rising, health budgets. The false divide has become a false economy – acute costs mount while the case for preventative investment upfront to alleviate crises is all the harder.
The Spending Review is an opportunity to shift spending towards long-term, mission-aligned objectives even within a tough fiscal climate – but the Government needs to end the false divide between protected and unprotected departments.
Bridging national policy silos and individual experiences, it is across places that budgets can be pooled, services can integrate around community needs and better overall outcomes can be more effectively sustained.
Jessica Studdert is chief executive at New Local
