How Labour can redefine the public sector debate

Reform will get nowhere if it starts and ends with confrontation with the workforce.

The public sector now looks set for months of bitter confrontation between the government and the unions. The doctors have announced a day of industrial action  -  their first in more than 40 years. Meanwhile teachers are set to strike in the autumn over changes to pensions.  Earlier in May tens of thousands of public sector workers including police and prison officers, lecturers and civil servants took part in a day of action and union leaders have warned of more to come.  It is clear that the mood among public sector workers is one of anger – and in their fight against the coalition’s programme of cuts and reforms the unions are looking to Labour for strong, unequivocal backing. 

How should the Labour leadership respond?  According to the former cabinet minister, Charles Clarke in a new article for IPPR’s journal Juncture, by adopting its own radical reform strategy for  public services. Clarke's prospectus is bold and much of it controversial: he calls for tight control over pay and spending, greater hypothecation of tax and an extension of user charging and competition.  He acknowledges that many of these reforms are unlikely to win the support of the industrial wing of the labour movement but argues that Labour shouldn’t allow "vested interests, even including some of its own members and supporters" to stand in the way of change. He does however offer new forms of institutional dialogue with unions and professional bodies to get agreement over areas such skills development, pensions and working arrangements.

Clarke is right that a future Labour government would have to make tough decisions. This is underlined in a new briefing published by IPPR today in conjunction with the CBI. The report highlights the fact that long-term trends, especially an ageing population, will increase demand on public services, while reducing future tax revenues.  The analysis is based on projections from the Office for Budget Responsibility showing how Britain’s budget balance is likely to move from a surplus of 1.3 per cent of GDP in 2015-16 to a deficit of 0.6 per cent of GDP in 2030-31 and then to 3.2 per cent of GDP in 2060-61: a deterioration of 4.5 per cent of GDP or £66 billion in today’s terms. 

These pressures are not unmanageable, still less an excuse for cutting back on providing high quality universal services. But they mean that any future government will have to make very difficult choices. The way forward is to create a broader, more sustainable tax base, take big strategic decisions about which services we as a country should prioritise and get serious about raising public sector productivity over the long term.

In terms of prioritisation we should be investing in universal affordable childcare: the success of the Nordic countries shows that this has massive long term pay offs in terms of reducing educational inequalities, as well as helping to expand the tax base by raising the female employment rate. In short, investment in early years is a massive win/win. But if we put our eggs in that basket it means that other services will face a tighter funding settlement over the long term.

That brings us to productivity. The electoral success of New Labour was built on the idea that social justice and economic efficiency could go hand in hand. It is my contention that the success of a future Labour government would depend on making public service productivity and the values of social justice, association and democratic empowerment go hand in hand.  

Lets be clear: being serious about productivity means being hard headed about reducing costs. In particular that means looking at where new technology can deliver services in a less labour intensive way. For example, new technologies in health mean that people will be able to monitor their own conditions much more actively without the need to consult a doctor. In another example, increasingly universities in the United States are opening up their degrees to the public by allowing online access to teaching material.  This could radically transform the nature of a university education by allowing wider access at lower cost. 

But delivering better value also requires the engagement and enthusiasm of those who deliver our public services day to day.  An agenda that seeks to marry the values of cooperation and employee participation to the need to improve efficiency has the potential to secure the buy-in of public service professionals. 

For example, could staff be rewarded by collective bonuses when a service improves? Or for example could we create new forms of not for profit service delivery organisation in which staff and users are jointly in control? The prospect that social care users could mutualise their personal budgets to create community led care providers is an enticing one. 

Of course user and producer interests will still clash and it is for that reason that we need robust forms of accountability in public services. We should also be realistic: it will be impossible to achieve agreement on every reform. And Clarke is right that before working out how it can better engage staff in the process Labour will need to be much clearer than it has been about its overall strategic approach to reform and the kind of changes that are necessary.  But it is important to remember that reform will get nowhere if it starts and ends with confrontation with the workforce.

Rick Muir is IPPR's associate director for public service reform

A future Labour government would have to make tough decisions on funding. Photograph: Getty Images.

Rick Muir is director of the Police Foundation

John Moore
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The man who created the fake Tube sign explains why he did it

"We need to consider the fact that fake news isn't always fake news at the source," says John Moore.

"I wrote that at 8 o'clock on the evening and before midday the next day it had been read out in the Houses of Parliament."

John Moore, a 44-year-old doctor from Windsor, is describing the whirlwind process by which his social media response to Wednesday's Westminster attack became national news.

Moore used a Tube-sign generator on the evening after the attack to create a sign on a TfL Service Announcement board that read: "All terrorists are politely reminded that THIS IS LONDON and whatever you do to us we will drink tea and jolly well carry on thank you." Within three hours, it had just fifty shares. By the morning, it had accumulated 200. Yet by the afternoon, over 30,000 people had shared Moore's post, which was then read aloud on BBC Radio 4 and called a "wonderful tribute" by prime minister Theresa May, who at the time believed it was a genuine Underground sign. 

"I think you have to be very mindful of how powerful the internet is," says Moore, whose viral post was quickly debunked by social media users and then national newspapers such as the Guardian and the Sun. On Thursday, the online world split into two camps: those spreading the word that the sign was "fake news" and urging people not to share it, and those who said that it didn't matter that it was fake - the sentiment was what was important. 

Moore agrees with the latter camp. "I never claimed it was a real tube sign, I never claimed that at all," he says. "In my opinion the only fake news about that sign is that it has been reported as fake news. It was literally just how I was feeling at the time."

Moore was motivated to create and post the sign when he was struck by the "very British response" to the Westminster attack. "There was no sort of knee-jerk Islamaphobia, there was no dramatisation, it was all pretty much, I thought, very calm reporting," he says. "So my initial thought at the time was just a bit of pride in how London had reacted really." Though he saw other, real Tube signs online, he wanted to create his own in order to create a tribute that specifically epitomised the "very London" response. 

Yet though Moore insists he never claimed the sign was real, his caption on the image - which now has 100,800 shares - is arguably misleading. "Quintessentially British..." Moore wrote on his Facebook post, and agrees now that this was ambiguous. "It was meant to relate to the reaction that I saw in London in that day which I just thought was very calm and measured. What the sign was trying to do was capture the spirit I'd seen, so that's what I was actually talking about."

Not only did Moore not mean to mislead, he is actually shocked that anyone thought the sign was real. 

"I'm reasonably digitally savvy and I was extremely shocked that anyone thought it was real," he says, explaining that he thought everyone would be able to spot a fake after a "You ain't no muslim bruv" sign went viral after the Leytonstone Tube attack in 2015. "I thought this is an internet meme that people know isn't true and it's fine to do because this is a digital thing in a digital world."

Yet despite his intentions, Moore's sign has become the centre of debate about whether "nice" fake news is as problematic as that which was notoriously spread during the 2016 United States Presidential elections. Though Moore can understand this perspective, he ultimately feels as though the sentiment behind the sign makes it acceptable. 

"I use the word fake in inverted commas because I think fake implies the intention to deceive and there wasn't [any]... I think if the sentiment is ok then I think it is ok. I think if you were trying to be divisive and you were trying to stir up controversy or influence people's behaviour then perhaps I wouldn't have chosen that forum but I think when you're only expressing your own emotion, I think it's ok.

"The fact that it became so-called fake news was down to other people's interpretation and not down to the actual intention... So in many interesting ways you can see that fake news doesn't even have to originate from the source of the news."

Though Moore was initially "extremely shocked" at the reponse to his post, he says that on reflection he is "pretty proud". 

"I'm glad that other people, even the powers that be, found it an appropriate phrase to use," he says. "I also think social media is often denigrated as a source of evil and bad things in the world, but on occasion I think it can be used for very positive things. I think the vast majority of people who shared my post and liked my post have actually found the phrase and the sentiment useful to them, so I think we have to give social media a fair judgement at times and respect the fact it can be a source for good."

Amelia Tait is a technology and digital culture writer at the New Statesman.