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Chancellor George Osborne has published the principles behind this autumn's crucial Spending Review, urging local government and its partners to undertake a fundamental review of how they provide services. The principles cover both central and local government spending, and are accompanied by promises of further debt-reduction initiatives beyond this summer, and protection for key frontline services and UK regions heavily reliant on public employment. The Spending Review Framework, published on 9 June, states ‘reducing the budget deficit is the most urgent issue facing Britain', and calls for a ‘radical' review of state and local government provision, including plans to ‘drive down' operational costs. ‘This includes looking at how they can promote fairness by better targeting interventions; how they can promote freedom by encouraging a greater range of service providers, challenge state monopolies and exploit the synergies between delivery bodies; and how they can promote greater responsibility by shifting power, funding and accountability into the hands of individuals and frontline professionals who are often better placed to allocate limited resources,' the document states. But, while Mr Osborne's document reiterates his commitment to reducing Britain's deficit, he stresses ‘the Spending Review will be guided by the principles of freedom, fairness and responsibility, in order to demonstrate that we are all in this together'. It commits the Government to ring-fencing health spending and international aid and, in line with pre-election manifesto pledges, it also aims to ‘limit the impact of reductions in spending on the most vulnerable, and on those regions heavily dependent on the public sector'. Deputy prime minister Nick Clegg recently indicated the Government could shortly announce ‘a series of measures' aimed at protecting public sector-dependent regions, such as the North West and the North East. Measures being considered include encouraging private sector firms to employ newly-redundant public sector staff. That proposal was criticised last week by SOLACE chief, David Clark, because it could mean taxpayers had to foot the bill for employer subsidies after they had already paid for public staff redundancy deals. Mr Osborne's ‘principles' would also, the chancellor claims, protect public spending ‘that generates high economic returns' and – in line with Mr Cameron's ‘Big society' pledge – glean public opinion on the future role and function of government.

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WHITEHALL

Osborne seeks 'radical' review

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