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Whitehall has belatedly signed up to the behavioural psychology zeitgeist underlying much current public policy thinking, by outlining plans to ‘nudge' citizens towards ministers' favoured forms of localism through its devolution agenda. A draft ‘structural reform plan' published by the Department of Communities and Local Government last week outlines plans to encourage certain behaviours and public policy choices by local residents through a system of ‘rewards and incentives', designed to ensure ministers achieve their favoured forms of devolution. The document states that ‘wherever possible, we will nudge people in the right direction, giving rewards and incentives and maintaining choice so that changes are driven by local people and local neighbourhoods'. The idea of using a nudge to shape policy aims gained significant momentum in 2008, when a book of that name – by Richard Thaler and Cass Sunstein – drew on research in psychology and behavioural economics to infer governments could heavily engineer policy outcomes while still seemingly offering voters the concept of choice. Nudge became a global publishing phenomenon, voted The Economist magazine's book of the year, and its principles promptly informed the work of policy think-tanks and strategists alike. Prime minister, David Cameron, reportedly read a copy while holidaying two years ago, and some of his most senior advisers are confessed acolytes of the theory. Local government critics question whether or not the concept of engineering outcomes sits comfortably with pure ‘localism' – the idea of local residents and leaders making their own choices about what policies to prioritise and how. One Whitehall insider told The MJ: ‘There is little doubt the coalition government has outlined a significant devolution agenda, and wants councils and their partners to deliver more frontline policies. ‘But while ministers talk the language of "localism", the CLG's draft reform plan reveals a clear intention to ensure certain policy outcomes.' Regardless, the CLG's reform plan – which will inform the Treasury's Comprehensive Spending Review in October – does outline a heavy devolution agenda, and the timetable for achieving those new policies. The department's five priorities are described as: decentralising power as far as possible; meeting people's housing aspirations, putting communities in charge of planning; increasing accountability; and letting people see how their money is spent. The reform plan also reveals the CLG's predicted timetable for the introduction of the Localism Bill, which will contain a general power of competence for town halls and allow communities the right to take over services. Officials expect the legislation to be enacted by November 2011, while the abolition of the regional development agencies and their replacement with local enterprise partnerships, should be completed by April 2012.

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WHITEHALL

Ministers study psychological 'nudge' to push localist policy

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