Cameron’s Big Society revolution to challenge public sector
July 11, 2011
David Cameron’s announcement today in East London could herald the most radical shake up of public sector services since the creation of the welfare state post the second world war. The Prime Minister’s commitment to pass into law the legal right of individuals to have choice in their services will dramatically challenge all public sector bodies in delivering this outcome. Going further the concept of the ‘big society’ and the power of local communities to run their own services looks set to be extended beyond the current provision relating to local post offices and other community buildings.
These proposals will also see the increased rights of communities and public sector workforces to have the right to run their own services through mutual and co-operative models. We could therefore be witnessing the beginning of the break up of public services as we know them with a reduction in control from Whitehall. Whether the mechanisms to enable this radicalism to occur exists remains to be seen. At the same time a potential land mark day of industrial action by Southampton City Council employees faced with redundancy or accepting revised contract terms will be watched by Councils across the Country. We therefore have an interesting and ‘heady cocktail mix’ of agendas coming together in the reshaping of local government and increased power of the individual.
‘Fragility of Investor-owned business’ comments Vince Cable
July 2, 2011
As a follow on to my previous blog which highlighted the flaws in the property investment of the care sector and in the wake of the Southern Cross difficulties and potential risks and stress to some 31,000 residents and their families regarding the longer term security of their care and support, Dan Gregory from Common Capitalprovides an excellent account on the need for greater mutualisation of public services within this weeks Guardian Public Leaders Network.
Two key quotes are made, firstly Vince Cable who comments on the ‘fragility of Investor-Owned business’ which is quite a statement given the domination of care companies like Southern Cross but perhaps of greater significance is the call and reminder of the Coalition Government commitment to mutuality by the Cabinet Office Minister Francis Maude who states ‘employee ownership is the way of the future’ with a pledge to see one million public sector staff taking ownership of their services.
In practice the procurement and competition rules on the externalisation of services from the public sector remains an issue if we are to see wholesale transfers of public sector services to the open market with control given to employees and service users. Plenty of examples are emerging of Local Authority Trading Companies (Wokingham and Northamptonshire) , Social Enterprises (particurarly the new NHS provider arms), Co-operatives, and Mutuals but more needs to be done by our politicians to open the doors to greater opportunity for public sector workers to operate and control their own businesses.
Unlocking the potential and freeing skilled workforces must be a ‘no brainer’ particularly if the outcome is new businesses which are close to the communities they serve, more responsive, quicker in decision making, and freed of red tape. A radical agenda is urgently needed to be embraced by politicians which moves us away from investor to employee ownership of our local services.
Time is pressing as is being most elequently highlighted by Dilnot in his media coverage on his proposed solutions for bridging the looming funding crisis for old age care. Long term Care Commissions, the much rated Wanless Report and the radicalism from the likes of Frank Field as long ago as 1997 to ‘think the unthinkable’ on social care have all come and gone. Ministers must grasp the nettle despite their concerns on any public reaction to increased self funding. A break up of public sector provider bodies with the mutualisation of employee owned services will be one part of the wider solution in providing more flexible cross effective services to self funders as well as state supported individuals.