After Osborne's spin, it's time to bring parliament and the public into the spending process

Institutional reforms can reduce the extent to which short-term tactics trump long-term thinking.

As with most spending rounds in recent history, George Osborne’s announcements last week were as much about politics as economics. It was, as the BBC’s Iain Watson noted, a nakedly political exercise, intended to define the battlegrounds for the next general election. In addition to electorally popular protection for schools, pensions and the NHS, the Chancellor attempted to lay a series of traps for Ed Miliband and Ed Balls on social security. It shouldn’t be a surprise to any of us that spending rounds are conducted like this, but it should be a disappointment.

The British economy is still very far from healthy and the government that wins the election in 2015 will still face incredibly grave fiscal challenges. We cannot afford for sound economic policy to be subordinate to the desire for soundbites and election tactics. That’s why parliament and the public have to be brought back into the spending process.

Consider the 2010 Spending Review. It was probably the most important political event of the parliament but it was the result of a rushed and secretive process and was subject to the bare minimum of scrutiny, with the Treasury select committee carrying out a one month inquiry on its content. The Fabian Society Commission on Future Spending Choices today publishes its first report, Spending Wisely, and calls for a comprehensive package of reforms to strengthen the ability of parliament and the public to hold the chancellor to account for the spending decisions he makes.

We think the public should have access to much better information about public spending, so they know where their money goes. One option would be a Citizen’s Tax Statement, which we think would reassure many people that most government money is spent on priorities people share.

Next we recommend that future governments set out 'draft' plans for consultation in advance of major spending decisions. Pre-announcement leaks to friendly journalists and running commentaries on cabinet negotiations just aren’t good enough. If we want proper scrutiny of spending decisions it is vital that parliament, policy experts and the media are given the chance to comment on relative priorities, review the evidence and rationale informing decisions and highlight unforeseen consequences. In fact, ministers ought to welcome this change as it would give them the freedom to change their minds without being accused of a humiliating climb-down.

Alongside this draft  we also propose a new long-term spending statement, which would require the government to explain its thinking on the direction of public spending over 10 or 20 years. Subsequent year-by-year decisions would then need to relate to this multi-decade perspective, or minsters would need to explain why not.

The commission suggests that the Office for Budget Responsibility should become a servant of parliament, charged with giving MPs the firepower to hold the chancellor and ministers to account. The OBR emerged in 2010 from a Conservative election manifesto promise and has transformed how fiscal policy is debated. But it focuses on the announced policies of the government of the day, so is unable to aid parliamentarians in weighing up the merits of alternative approaches. For the sake of good governance, its remit could be expanded, so that it is more like the US Congressional Budget Office. Finally parliamentary scrutiny might be strengthened by the creation of a separate Budgetary Committee, easing the burden on the chronically overworked Treasury select committee.

But simply scrutinising the spending allocations is not enough. The commission also calls for a new institution to advise on how to get more out of public spending. We propose the creation of an independent Office of Public Performance to police the quality of public spending and to help build public trust and understanding. Its aim would be to ensure that when decisions are made, as much attention is focused on what they are intended to achieve, as what they cost.

Politicians won’t stop being politicians. But institutional reforms can reduce the extent to which short-term tactics trump sound, long-term thinking. The public need to have confidence that decisions are being taken for the right reasons and the only way for that to happen is to shine more light on the murky process of setting budgets. 

George Osborne leaves 11 Downing Street in London on 19 June 2013. Photograph: Getty Images.

Andrew Harrop is general secretary of the Fabian Society.

Photo: Getty
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How our actual real-life adult politicians are mourning Big Ben falling silent

MPs are holding a vigil for a big bell.

Democracy in action in the Mother of Parliaments has always been a breathtaking spectacle, and today is no exception. For a group of our elected representatives, the lawmakers, the mouthpieces for the needy, vulnerable and voiceless among us, will be holding a silent vigil, heads bowed, for the stopping of Big Ben’s bongs for four years.

That’s right. Our politicians are mourning an old bell that won’t chime for a limited period.

Here’s everything ludicrous they’ve been saying about it:

“Of course we want to ensure people’s safety at work but it can’t be right for Big Ben to be silent for four years.

“And I hope that the speaker, as the chairman of the House of Commons commission, will look into this urgently so that we can ensure that we can continue to hear Big Ben through those four years.”

- The Right Honourable Theresa May MP, Prime Minister of the United Kingdom of Great Britain and Northern Ireland, head of Her Majesty’s Government.

“There’s going to be a small group of us standing there with bowed heads in the courtyard… a group of like-minded traditionalists.

“We’re going to be gathering outside the members’ entrance, gazing up at this noble, glorious edifice, listening to the sounds rolling across Westminster, summoning true democrats to the Palace of Westminster.

“We’ll be stood down there with heads bowed but hope in our hearts.”

- Stephen Pound, Labour MP for Ealing North, Shadow Minister for Northern Ireland Where There Are Actual Issues.

“Why can’t they switch the bells back on when they stop working at 5pm or 6pm or whenever it is? Also why is it taking four years?… My own view is that Big Ben, whether it be the Elizabeth Tower or indeed the bell inside, it’s not just one of the most iconic British things, it’s one of the most iconic world things, it’s on a Unesco site.”

- Nigel Evans, Conservative MP for the Ribble Valley and Adult Human Person.

“Four years to repair Big Ben?! We could have left the EU twice in that time.”

- The Right Honourable Lord Adonis, formerly of the No 10 Policy Unit and ex-Secretary of State for Transport.

“I think Big Ben ought to be kept striking as much as possible during the repairs as long as it doesn’t deafen the work force.

“It would be symbolically uplifting for it to sound out our departure from the EU as a literally ringing endorsement of democracy.”

 - The Honourable Jacob Rees-Mogg, Conservative MP for North East Somerset and Our Future Overlord.

“We are being liberated from the European Union superstate and Britain will again be a completely self-governing country. Where will the eyes of the world be? On Parliament and Big Ben. It would be very strange if at midnight on that day it does not chime out, very bizarre. It is the heart of our nation.”

 - Peter Bone, Conservative MP for the Unfortunate Doomed of Wellingborough. 

Others have responded:

“[Silencing the bell is] not a national disaster or catastrophe.”

- The Right Honourable Jeremy Corbyn MP, Leader of Her Majesty’s Most Loyal Opposition (to broken clocks).

“When you see the footage [on Monday] of our colleagues who gather at the foot of Big Ben you will not see too many colleagues who have careers ahead of them.”

- Conor Burns (by name and by nature), Conservative MP for Bournemouth West and Parliamentary Private Secretary to the Foreign Secretary.

“I think we should respect people’s health and safety while we’re at work.

“To be honest, there are more important things to be worrying about. We’ve got Grenfell Tower, we’ve got thousands of people across our country let down who don’t get access to proper mental health care, and so on and so forth.

“Quite apart from what’s happened in Barcelona, let’s just get a life and realise there are more important things around.”

- The Right Honourable Norman Lamb, Liberal Democrat MP for North Norfolk, former Health Minister, and National Voice of Reason 2017.

I'm a mole, innit.