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
Photo: Getty
Show Hide image

Who will win in Stoke-on-Trent?

Labour are the favourites, but they could fall victim to a shock in the Midlands constituency.  

The resignation of Tristram Hunt as MP for Stoke-on-Central has triggered a by-election in the safe Labour seat of Stoke on Trent Central. That had Westminster speculating about the possibility of a victory for Ukip, which only intensified once Paul Nuttall, the party’s leader, was installed as the candidate.

If Nuttall’s message that the Labour Party has lost touch with its small-town and post-industrial heartlands is going to pay dividends at the ballot box, there can hardly be a better set of circumstances than this: the sitting MP has quit to take up a well-paid job in London, and although  the overwhelming majority of Labour MPs voted to block Brexit, the well-advertised divisions in that party over the vote should help Ukip.

But Labour started with a solid lead – it is always more useful to talk about percentages, not raw vote totals – of 16 points in 2015, with the two parties of the right effectively tied in second and third place. Just 33 votes separated Ukip in second from the third-placed Conservatives.

There was a possible – but narrow – path to victory for Ukip that involved swallowing up the Conservative vote, while Labour shed votes in three directions: to the Liberal Democrats, to Ukip, and to abstention.

But as I wrote at the start of the contest, Ukip were, in my view, overwritten in their chances of winning the seat. We talk a lot about Labour’s problem appealing to “aspirational” voters in Westminster, but less covered, and equally important, is Ukip’s aspiration problem.

For some people, a vote for Ukip is effectively a declaration that you live in a dump. You can have an interesting debate about whether it was particularly sympathetic of Ken Clarke to brand that party’s voters as “elderly male people who have had disappointing lives”, but that view is not just confined to pro-European Conservatives. A great number of people, in Stoke and elsewhere, who are sympathetic to Ukip’s positions on immigration, international development and the European Union also think that voting Ukip is for losers.

That always made making inroads into the Conservative vote harder than it looks. At the risk of looking very, very foolish in six days time, I found it difficult to imagine why Tory voters in Hanley would take the risk of voting Ukip. As I wrote when Nuttall announced his candidacy, the Conservatives were, in my view, a bigger threat to Labour than Ukip.

Under Theresa May, almost every move the party has made has been designed around making inroads into the Ukip vote and that part of the Labour vote that is sympathetic to Ukip. If the polls are to be believed, she’s succeeding nationally, though even on current polling, the Conservatives wouldn’t have enough to take Stoke on Trent Central.

Now Theresa May has made a visit to the constituency. Well, seeing as the government has a comfortable majority in the House of Commons, it’s not as if the Prime Minister needs to find time to visit the seat, particularly when there is another, easier battle down the road in the shape of the West Midlands mayoral election.

But one thing is certain: the Conservatives wouldn’t be sending May down if they thought that they were going to do worse than they did in 2015.

Parties can be wrong of course. The Conservatives knew that they had found a vulnerable spot in the last election as far as a Labour deal with the SNP was concerned. They thought that vulnerable spot was worth 15 to 20 seats. They gained 27 from the Liberal Democrats and a further eight from Labour.  Labour knew they would underperform public expectations and thought they’d end up with around 260 to 280 seats. They ended up with 232.

Nevertheless, Theresa May wouldn’t be coming down to Stoke if CCHQ thought that four days later, her party was going to finish fourth. And if the Conservatives don’t collapse, anyone betting on Ukip is liable to lose their shirt. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.