A Conservative Government will launch a two-phase programme for the public sector, beginning with top-down emergency measures to tackle the fiscal crisis, shadow chief secretary, Philip Hammond, told the SOLACE conference this week. In a blunt speech, Mr Hammond said: ‘Our first phase will be unashamedly top-down. ‘After that, it will be a case of driving efficiency from the bottom.' He added ‘The new Government will look at all workstreams and ask whether the programmes are affordable. Every major public spending project will be reviewed.' Mr Hammond said that recent public spending increases had not been matched by increased productivity. He said: ‘PM Gordon Brown defined the public service agenda by input, not outcomes, and we've paid for this confusion through falling productivity. We have to concentrate on improving effective outcomes in the public sector and embrace the concept that leaner is not just fitter, but better. We have to close the productivity gap between the public and private sectors.' He praised local government, which he said had made ‘great strides' in efficiency savings, but added: ‘I have no doubt of the quality of our top-performing councils. The challenge is to widen this.' He added: ‘Local government is in the vanguard of the drive for efficiency, and has gone further and faster than any other part of the public sector. But there is still more to do to make the pursuit of value for money central to the organisation.'
