The One Barnet case heralds local government’s disappearing act

This is a future vision of local government where councils are reduced to mere technocratic commissioning bodies.

 

Barnet Council’s radical plan to outsource 70 per cent of its services to a private company was upheld this week by the High Court on a technicality.

The legal challenge to the One Barnet programme brought by Maria Nash, a severely disabled resident of the north London borough, exposed the Council’s failure to consult residents on the planned changes to the fundamental role of local government. Lord Justice Underhill found that “the Council never set out to consult about its outsourcing programme at all” and that “representatives should have been given the opportunity to express views or concerns about outsourcing the functions or services in question”. However, despite the lack of consultation, Maria Nash’s challenge failed because it was brought out of time.

The decision means that unless Nash’s lawyers can mount a successful appeal, Barnet Council will proceed with plans to sign two contracts, together worth around £600m over 10 years, with Capita Plc, which privatise many of the Council’s core functions. With the precedent for the mass outsourcing of local government, we can expect other local authorities, in their desperate search for cost savings, to follow suit.

Dubbed the “easyCouncil”, Barnet’s Tory administration has characterised itself as a “no frills” local authority delivering only basic public services and charging for optional extras. Contracting out of services may be nothing new, but privatisation on this scale is. The Council will contract out quintessential local government services including planning, environmental health, cemeteries, customer services and highways to a single private provider. With this 790 full-time jobs will be transferred to the private sector. Many of these jobs will leave the borough leading to a loss of local knowledge on which services such as planning and environmental health rely.

This is a future vision of local government where councils are reduced to mere technocratic commissioning bodies rather than democratic authorities entrusted with developing and delivering social improvement in their communities.

But, some say, if it reduces the tax bill and delivers efficient services why the outcry?

Even before One Barnet programme, there have been warning signs that the wholesale privatisation of local government leads to downgraded services. Fiascos in Barnet over the outsourcing of car parking charges which led to heavy losses to high street businesses, mismanaged care schemes for disabled persons and IT providers that have gone bust at a massive loss to the taxpayer, do not augur well.

Driven by profit-making objectives, the private contractors, lack the public service ethos which is so important in the delivery of public services. Under the new contracts, a single company will have responsibility for granting planning permissions, building control certificates and environmental health. With a legal obligation to maximise profits for their shareholders, Capita will have every incentive under a 10 year contract to cut corners in a drive for greater profits.

And when things go wrong to whom should residents turn? To customer services now relocated to the other end of the country? To their local councillors? Ordinarily, a resident with a complaint about, say, flytipping in their street would contact their councillor to resolve the problem. But under privatised arrangements locked in for 10 years at a time councillors will lose most of their ability respond.

As Barnet Liberal Democrat councillor Jack Cohen put it “Does anyone think that locally elected councillors will have in future the same influence, the same advocacy rights and the same input with the large multinationals as they do at the moment?”

The outsourcing of local government services threatens not just to downgrade services but to downgrade local democracy. At the heart of the Nash case, which the court vindicated, was the fact that people were not asked for their views – neither at the ballot box nor in consultation – on what will be one of the most radical experiments in local government privatisation.

Once the contracts are signed they will remain in place for ten years, regardless of who wins the local elections. Any future administration will be caught in a contractual straightjacket. One might reasonably ask, what is the point of voting in local elections every four years when the contracts for managing most core services are only renegotiated every ten years?

The removal of local governments’ power over the day to day delivery of basic services is likely to be irreversible. The reduction of local authorities influence over social policy diminishes their power to innovate and control outcomes. With this week’s local elections likely to produce low voter turnouts, the privatisation of most local government functions will only lead to a further a breakdown in the relationship between ordinary citizens and local councils.

As John Stuart Mill recognised back in the 19th century the main purpose of local power was not simply to deliver efficient outcomes but to nourish the public spirit. Local government can provide greater opportunities for daily contact among and between citizens and their elected officials. However, councils can only become ‘schoolhouses of democracy’ if they are sufficiently empowered to take the decisions which shape the quality of local life. Power and participation go hand in hand – the existence of power tends to motivate people to participate in the exercise of that power. Powerlessness tends to breed the opposite. If people think that local authorities cannot significantly affect social policy in their area, why should they bother voting or even participating in the delivery of those services?

The mass privatisation of local services across Britain heralded by the One Barnet programme has the potential to fundamentally undermine local democracy. If that happens, there will be little to stop private companies taking over what little remains of local government.

The Royal Courts of Justice in London. Photograph: Getty Images
Nicola Sturgeon. Photo: Getty
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For the first time in decades, there is genuine dissent in Scottish Nationalist ranks

The First Minister is facing pressure to talk less about independence - and bring on new talent in her party.

She so recently seemed all-powerful, licensed to reign for as long as she chose, with the authority to pursue the return of our national sovereignty. We would then have the ability to strike our own deals on our own terms, a smaller, smarter, leaner nation freed from the stifling constraints of partnership with a much larger neighbour. There was, she repeatedly told us, nothing to be afraid of.

Now, suddenly, she is the victim of her own miscalculation: having misread the public mood, having raced too far ahead of moderate opinion, she finds herself at bay. The voters have delivered a public humiliation, while an opposition party until recently lampooned as unelectable is on the march. There is, suddenly, talk of her departure sooner rather than later.

Yes, this is a tough time to be Nicola Sturgeon…

Let’s not overstate it. The position of Scotland’s First Minister is considerably more secure than that of the UK’s Prime Minister. Theresa May wants out as soon as is feasible; Sturgeon, one suspects, will have to be dragged from Bute House. Sturgeon retains enough respect among the public and support among her colleagues to plough on for now. Nevertheless, things are not what they were before the general election and are unlikely ever to return to that happy state.

It’s all because of Scexit, of course. Sturgeon’s unseemly sprint for the indy finishing line left enough Scottish voters feeling… what? Mistreated, taken for granted, rushed, patronised, bullied… so much so that they effectively used June 8 to deliver a second No vote. With the idea of another referendum hanging around like a bad headache, the electorate decided to stage an intervention. In just two years, Sturgeon lost 40 per cent of her Westminster seats and displaced half a million votes. One could almost argue that, by comparison, Theresa May did relatively well.

For the first time in decades, there is genuine dissent in Nationalist ranks. Tommy Sheppard, a former Labour Party official who is now an influential left-wing SNP MP, published an article immediately after the general election calling on the First Minister to ‘park’ a second referendum until the Brexit negotiations are complete. There are others who believe the party should rediscover its talent for the long game: accept the public mood is unlikely to change much before the 2021 devolved elections, at which point, even if the Nats remain the single largest party, Holyrood might find itself with a unionist majority; concentrate on improving the public services, show what might be done with all the powers of an independent nation, and wait patiently until the numbers change.

There are others – not many, but some – who would go further. They believe that Sturgeon should take responsibility for the election result, and should be looking to hand over to a new generation before 2021. The old guard has had its shot and its time: a party with veterans such as Sturgeon, John Swinney and Mike Russell in the key jobs looks too much like it did 20 years ago. Even the new Westminster leader, Ian Blackford, has been on the scene for donkey’s. There are more who believe that the iron grip the First Minister and her husband, SNP chief executive Peter Murrell, have on the party is unhealthy – that Murrell should carry the can for the loss of 21 MPs, and that he certainly would have done so if he weren’t married to the boss.

The most likely outcome, given what we know about the First Minister’s nature, is that she will choose something like the Sheppard route: talk less about independence for the next 18 months, see what the Brexit deal looks like, keep an eye on the polls and if they seem favourable go for a referendum in autumn 2019. The question is, can a wearied and increasingly cynical public be won round by then? Will people be willing to pile risk upon risk?

As the hot takes about Jeremy Corbyn’s surprise election performance continue to flood in, there has been a lot of attention given to the role played by young Britons. The issues of intergenerational unfairness, prolonged austerity and hard Brexit, coupled with Corbyn’s optimistic campaigning style, saw a sharp rise in turnout among that demographic. Here, Scotland has been ahead of the curve. In the 2014 referendum, the Yes campaign and its can-do spirit of positivity inspired huge enthusiasm among younger Scots. Indeed, only a large and slightly panicked defensive response from over-65s saved the union.

That brush with calamity seems to have been close enough for many people: many of the seats taken from the Nats by the Scottish Tories at the general election were rural, well-to-do and relatively elderly. The modern electorate is a fickle thing, but it remains rational. The Corbynites, amid their plans for total world domination and their ongoing festival of revenge, might bear that in mind.

Chris Deerin is the New Statesman's contributing editor (Scotland). 

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