The Ministry of Justice does not understand the cost of prison

New report reveals that lack of financial controls at the ministry could be affecting services.

The National Audit Office has conducted an investigation into the way the Ministry of Justice (MoJ) administers its finances and found that its operations are not up to scratch. The problem areas, according to the report, are the MoJ's understanding of its costs, lack of consistency in its financial approach, and a feeble commitment to "a clear, comprehensive action plan". Although the situation is improving, it says there is still a long way to go.

However, the report also contains a dire warning of how poor financial management could be affecting its services:

The Ministry does not understand the costs of its activities within prisons, the probation service, and the courts in sufficient detail. This reduces the Ministry's ability to allocate resources on the basis of relative financial and operational performance of individual prisons, probation services and courts.

Given the Justice Secretary Ken Clarke's recent high-profile announcement that he will seek to reform the way prison works, the "financial pressures" on the MoJ that the report identifies are not likely to go away as it tackles new policy and new ways of distributing funding. With the additional burden of finding spending cuts, the task for the MoJ is not going to get any easier.

Targeting funding at specific prisons, courts and services is going to become even more important as budgets are slashed. We need to be confident that the MoJ is up to the task of maintaining services in difficult financial circumstances, and this report casts grave doubts on its ability to do so.

Caroline Crampton is assistant editor of the New Statesman. She writes a weekly podcast column.

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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