A recipe for a U-turn

Government should talk to experts earlier.

This morning the CBI boss John Cridland has moaned to the Financial Times that the government’s growth plans have fallen into something of an implementation black hole. Having announced major plans to get the economy back on track last November the plans are now, says Cridland, mired in bureaucracy and sitting gathering dust on ministers’ and civil servants’ desks.

While this is not a new problem, the time lag between announcement and action does seem to have worsened under the current government. Some observers put this down to cuts in departmental budgets, with fewer civil servants able to jump to it and get new initiatives moving. Others claim its down to a lack of joined-up thinking across government departments.

In particular, the growth plan is apparently suffering from the emasculation of business secretary Vince Cable, since BIS should be a key co-ordinating ministry in this area. Whatever the cause, the outcome is the same. Months have passed without, as Cridland puts it, us seeing “diggers on the ground”. Cridland’s own view is that members of the government appear to be “dazzled in the headlights”.

I wonder if the reality might be something simpler. This expectation of early action has been caused by a tendency to rush into making announcements for political expediency, rather than weighing up the practical considerations.

A senior banker told me last week that following George Osborne’s Mansion House speech the week before, at which several key new policies around stimulating lending to small businesses were announced, his firm received a flurry of phone calls from Treasury officials asking exactly what those policies might mean in practice and how they might be implemented. To re-cap, that’s officials working out the practical details of implementing policies after they have been announced.

If nothing else that sounds like a recipe for a series of sudden and unexplained policy U-turns. As the omnishambles budget unfolded, George Osborne told the Today programme that the only worse than listening was not listening.

I’d suggest that it would make more sense to do that listening – to professionals and industry experts in particular – before announcing key policies rather than after.

This article originally appeared in economia.

Photograph: Getty Images

Richard Cree is the Editor of Economia.

Photo: Getty
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The big problem for the NHS? Local government cuts

Even a U-Turn on planned cuts to the service itself will still leave the NHS under heavy pressure. 

38Degrees has uncovered a series of grisly plans for the NHS over the coming years. Among the highlights: severe cuts to frontline services at the Midland Metropolitan Hospital, including but limited to the closure of its Accident and Emergency department. Elsewhere, one of three hospitals in Leicester, Leicestershire and Rutland are to be shuttered, while there will be cuts to acute services in Suffolk and North East Essex.

These cuts come despite an additional £8bn annual cash injection into the NHS, characterised as the bare minimum needed by Simon Stevens, the head of NHS England.

The cuts are outlined in draft sustainability and transformation plans (STP) that will be approved in October before kicking off a period of wider consultation.

The problem for the NHS is twofold: although its funding remains ringfenced, healthcare inflation means that in reality, the health service requires above-inflation increases to stand still. But the second, bigger problem aren’t cuts to the NHS but to the rest of government spending, particularly local government cuts.

That has seen more pressure on hospital beds as outpatients who require further non-emergency care have nowhere to go, increasing lifestyle problems as cash-strapped councils either close or increase prices at subsidised local authority gyms, build on green space to make the best out of Britain’s booming property market, and cut other corners to manage the growing backlog of devolved cuts.

All of which means even a bigger supply of cash for the NHS than the £8bn promised at the last election – even the bonanza pledged by Vote Leave in the referendum, in fact – will still find itself disappearing down the cracks left by cuts elsewhere. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.