Title

The opening salvos of what looks like a protracted election campaign during the first part of 2010 have confirmed, in no uncertain terms, that the state of the economy is going to play a key part in the campaign – and that in reducing the deficit, there will be testing times ahead for local government. Indeed, it would seem that anyone outside the health and education sectors will be severely constrained by resources which are shrinking faster than a merchant banker's bonus pool. So, what is to be done? Historically, times of crisis have also been times of great innovation and progress. The Victorian Cities in Asa Briggs' seminal text provided much evidence that necessity is often the mother of public sector invention. Indeed, when our forebears backs were pushed against the wall by huge population growth, they responded with a programme of infrastructure investment, much of which we still rely on today. But what of the current crisis? Do we still have the pioneering spirit to overcome these latest challenges, or has our entrepreneurial zeal been fatally subdued in an avalanche of performance indicators and tenebrous newspaper headlines? Optimistically, of course, there has surely never been a more opportune time for local government to step up to the plate. Trust in large institutions has been rocked by the financial crisis, together with any remaining semblance of faith in central government, thanks to the MPs' expenses scandal. During the financial crisis, people have looked for local solutions, and councils have, by and large, responded positively to the challenge. Longer term, local government has to overcome three historically-polarised encumbrances, if it is to not only seize this agenda, but fundamentally shape it over coming years. The first of these is structural change. While there are numerous examples of this beginning to happen across the country, we must surely all accept that greater integration of administrative functions is not only an inevitability, but should be a priority in order to continue to shift resources to areas of new growth and demand? Second has to be a more mature debate about the role of the wider market in providing community services, away from the dogma and fractured ideology which has, for too long, put the interests of historical allegiances and self-interest ahead of the needs of service-users. Does that mean outsourcing is a panacea? Of course it doesn't, but a more mixed economy, based on a new consensus between public, private and community and voluntary sector providers, will provide some of the sparks of invention required to tackle real-terms cuts of up to 20%. At the very least, a mature discussion about the current and future state of the market may militate against any temptation to outsource as a short-term measure of fiscal expediency? Third, there does need to be a fundamental rethink of the relationship between the individual and the state in the way public services are conceived, designed and delivered. This will be no easy discussion. Services are often hard won and will not be easily ceded – but the founding principles of a welfare state are not, and were never intended to be, set in stone. What was conceived in 1942 and implemented in 1948 must be continually tested against the realities of 2010. This discussion is far too important to be left to politicians and civil servants. The margins for error are slight, and the impact of any changes will be felt most acutely through local services. This has to be ‘our' debate. If we are brave enough to tackle the considerable foes of tribalism and myopia, the future just might be local – and the county better off because of it. Aidan Rave is director, interim and consulting, at Pinnacle PSG

Title

WHITEHALL

Necessity is the mother of invention

SUBSCRIBE TO CONTINUE READING