Axing quangos is really about political capital

As the spending review approaches, a leaked list of doomed quangos suggests that these cuts are about political gains more than financial savings.

A list leaked to the Telegraph reveals the 177 quangos that are allegedly to be the first on to David Cameron's "bonfire of the quangos".

The full list includes a dazzling array of bodies, with examples as varied and esoteric as the Agricultural Dwelling House Committees (comprising 16 bodies), the Public Guardian Board and the Teachers TV Board.

It's easy to react with bemused horror to the array of obscure-sounding titles. But the list does demand slightly closer scrutiny -- also marked for burning are the Audit Commission, British Waterways, the Human Fertilisation and Embryology Authority, and the Women's National Commission, to name just a few. Baroness Deech has already gone on the offensive this morning's Today programme to point out that much of the £5m budget for the Human Fertilisation and Embryology Authority comes from patients, not taxpayers, and that axing it thus achieves very little in budgetary terms.

As we get closer to October's Comprehensive Spending Review, the debate surrounding the future of these bodies and others is obviously going to intensify. Other high-profile examples, such as the BBC World Service, the British Council, the Office of Fair Trading and the Carbon Trust, are still under review.

But while these bodies await their fate, I thought I'd share a small insight into one of the bodies that is reportedly going to be axed: the Government Hospitality Advisory Committee for the Purchase of Wine. A while ago, consumed with curiosity as to what this committee was actually up to and how much of taxpayers' money it was spending on wine, I put in a Freedom of Information request, and discovered the following:

  • The government calculates that it will use around £90,00-£100,000 worth of stock (wines, spirits, beers, etc) a year for "high-level events".
  • Government Hospitality, the department within the Foreign and Commonwealth Office that administers the committee, spends roughly one-eighth of its £800,000 annual budget on restocking the wine cellar.
  • The committee has five members, who meet four times a year and are not paid for their time (apart from travel expenses). It is chaired by Sir David Wright, the former British ambassador to Japan.
  • According to minutes, tastings take place during meetings. Recommendations are then made about purchases.

None of this is of anything other than passing interest. But it does provide a small amount of background to one of the entries on the baffling list of soon-to-be-extinct quangos. It also raises a bigger point about the motivation behind the coalition's war on quangos.

Wines will still need to be purchased, so it is unlikely that major savings will be made there, and the existence of the committee itself costs almost nothing, so "burning" this quango achieves very little in the way of saving costs. Without having investigated them all, I still would wager that a significant portion of the rest of the list falls into the same category -- fulfilling functions that will go on being necessary, at relatively small cost.

A senior Whitehall source told the Telegraph that "these reforms represent the most significant rolling back of bureaucracy and the state for decades. Our starting point has been that every quango must not only justify its existence but its reliance on public money."

This connection between abolishing quangos and "rolling back bureaucracy" is the real story here. Getting rid of these quangos isn't going to eliminate the Budget deficit, but it will give the coalition political ammunition once more against the "bloated bureaucracy" instituted by Labour, and put the government on the offensive as public support for the spending cuts wanes and the spending review itself approaches.

Caroline Crampton is web editor of the New Statesman.

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Tuition fees uphold socialist principles - the left should support them

The amount of disadvantaged students applying for university between 2005 and 2015 went up 72 per cent in England, which was bigger than all other countries within the UK, including Scotland.

Since their introduction under the Blair Government, tuition fees have been a contentious issue amongst the British left. Under the leadership of Ed Miliband, Labour adopted a compromise position of reducing tuition fees – a seemingly inoffensive concession from his original position supporting free education within higher education.

Whilst they may appearing to promote educational inequality, research has shown that tuition fees have actually had the opposite effect within education. Political Scientist Martin Robbins wrote in the Guardian that “in 2015, application rates of 18 year olds living in disadvantaged areas in all countries of the UK increased to the highest levels recorded”. Though it is unlikely that the increase of fees and their reinvestment within education would have had a large effect on that crop of students, it does demonstrate that tuition fees are not the educational barrier some present them to be.

In fact, the amount of disadvantaged students applying for university between 2005 and 2015 went up 72 per cent in England, which was bigger than all other countries within the UK, including Scotland.

The largest drop-off between the least and most deprived children within educational attainment is between the ages of three and fourteen. Despite this, the higher education budget is around double that of pre-school education, which is where the inequality of education begins to kick in. A more adept way of solving the inequality within education would be a tuition fees system where a set percentage of a student’s fee is retained by their university, and a set percentage put towards pre-school education, to set the taxation of education into a progressive context.

In the latest government White Paper on tuition fees, the Universities Minister Jo Johnson lays out the idea of a teaching excellence framework (TEF). In theory, this is not problematic. Rather than raise the chargeable rate of fees (as done in 2012) the TEF would allow universities to tax above the chargeable rate on account of good teaching. This would mean for the vast majority of university students, rates would be unchanged. However, as tuition fees are currently at the chargeable rate of £9,000, the policy within the current climate is too objectionable.

Jo Johnson’s TEF model is an example of a reasonable concept which would be ineffective in practice, due to the difficulty in ranking the quality of teaching at the point of use, rather than through the means of a policy such as a graduate tax, based off earnings. If the British left championed a version of the TEF with a lower base rate, or instead just a graduate tax, it would mean Labour would be able to once again control the narrative with a sensible but redistributive policy on education. This would not only regain Labour credibility amongst the electorate on financial matters, but could be used as a base to build on, as a positive case for wealth redistribution - whether it be to pre-school education, or through increasing grants for those at university, or via restoring EMA.

Taxation of further education is one of the few issues which can boast a large level of bipartisan support across the political spectrum, and is one of the few viable ways to ensure a fully-funded but regulated further education system, as tuition fees make up over half of many universities budgets. In fact, many political commentators have stated that tuition fees are the only example of taxation upon the middle class that Labour has got the Tories to agree on, albeit if it is a pre-emptive form of it.

Whilst tuition fees are not ideal, they ensure the safeguarding of much university funding, the freeing up of the educational budget to close educational inequality between younger students and to help move towards a meritocratic system of education - which is a thoroughly socialist principle.

Ben Gartside is the Under 19s Officer for North West Young Labour and founder and chair of the Young Greater Manchester Fabians.