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Labour steps cautiously up to difficult truths about the NHS

At last, a shadow minister says budgets would be tight and reform essential regardless of who was in power.

NHS nurses in Olympic opening ceremony
The Olympic opening ceremony celebrating the NHS. Source: Getty Images

We know Labour loves the NHS. All British political parties are obliged to profess their undying devotion to the health service at routine intervals, but Labour, as the party that oversaw the creation of the NHS (and has, in recent memory, invested the most money in it) claims a special protective monopoly. Voters seem to recognise this and regularly award Ed Miliband’s party robust leads on questions of who is most trusted on the issue.

That advantage is sure to be extended as the government’s NHS reforms, combined with an unprecedented budget squeeze, reinforce the impression that the Tories inevitably succumb to vandalistic urges towards the health service.

Even without the Lansley reforms (now to be implemented by Jeremy Hunt, who has never knowingly inspired confidence in anyone apart, it seems, from the Prime Minister) the NHS would be causing headaches for the coalition.  The health budget may be “ring-fenced” but anything other than a real terms rise in spending feels, over time, like a nasty cut, given inflation in the cost of treatments and the growing demands of caring for an ageing population.

That would be a problem for Labour in government too although you don’t often hear opposition MPs advertise the fact. Why would they? Slamming David Cameron for trashing the NHS is an open goal for Ed Miliband; it would just complicate the goal-scoring manoeuvre to add mealy-mouthed acknowledgements of the immovable budget obstacles on the horizon. That, at least, is one argument and it has generally prevailed at the top of the Labour party.

There is another view, which is that the public are not fools and will, as an election approaches, expect to hear something about the opposition’s intentions towards the NHS other than “we wouldn’t be the Tories”. As I’ve argued (ad nauseam) in the past, a necessary step on Labour’s journey to governing credibility, especially with regard to fiscal responsibility, is being seen and heard to talk about innovation and reform of public services. This doesn’t have to be a macho breast-beating display of willingness to wield the axe. It just means demonstrating, by the deployment of some policy imagination, that Labour recognises the long-term obligation to find ways of getting more for less.

With that in mind, I was heartened to come across a speech yesterday given by Liz Kendall, shadow minister for social care. Not many people spend their weekends catching up on policy interventions by junior ranking shadow cabinet figures, so I suspect you may not have yet got round to reading this particular example of the genre. It is not the Gettysburg address, nor is it a complete exposition of Labour’s policy towards reforming the health service. As with everything else in Labour's agenda for government (with good reason, given the time still to run before an election) health policy is a work in progress.

Nonetheless, for those of us who try to decrypt dull Labour announcements, scouring the formless surface of cosy One Nation reassurance for signs of something that looks like progress towards a governing position, Kendall’s speech is a find.

She states, for example that:

The truth is that far more fundamental reform is vital if we’re going to meet the challenges of demographic and social change.

And that:

.. Whichever party is in Government and however much growth we get back into the economy, we’ve got to get far more out of the billions of pounds spent in the NHS into the foreseeable future.

Obviously true, and a few grades below rocket science, but refreshing to hear said aloud by a shadow cabinet minister.

Kendall clarifies, up to a point, Labour’s view on what would happen to the new NHS architecture currently being put in place by the coalition if Ed Miliband were prime minister.

If Labour wins the next election we will repeal the 2012 Health and Social Care Act but we will not force the NHS through another major re-organisation.

We don’t need new NHS organisations, we’ll simply ask those we inherit to work differently.

We’ll keep Clinical Commissioning Groups and Health and Wellbeing Boards, but ensure they work within a properly accountable national health service.

And what about this for a realistic account of how the opposition should behave towards hospital  reconfigurations (a euphemism for the movement of services out of hospitals, into the community, usually involving ward closures, demonstrations, angry public meetings, bad headlines etc.):

Whilst changes to local hospital services will always be difficult, Labour will not have a policy of blanket opposition to hospital reconfigurations like the Conservatives did at the last election.

That might be easy politics. But it wouldn’t be right in principle or in practice.

We will judge every proposal on its merits: whether it saves more lives, reduces disabilities, and improves the quality of care. The clinical case must be made and supported by the evidence, if the public as well as local MPs are to be convinced.

In other words, yes, sometimes wards and even hospitals will have to close if we’re serious about finding the most effective and efficient way to deliver modern health services. That is because vast old district general hospitals are a desperately outmoded way of looking after people, many of whom have chronic conditions that should be treated not in hospital beds but at home or at local clinics. Better still, such conditions should prevented or kept in check by lifestyle changes. It’s what nearly everyone who has looked at the long-term implications of health policy decides in the end, but you rarely hear opposition politicians say it because joining in the anti-closure demo is so much more rewarding in the political short term.

Kendall even talks about “innovation” in the health service and the need to take a non-dogmatic view of the role of private and voluntary sector providers:

For all the criticism you hear, there’s actually a huge desire and talent for innovation amongst NHS staff.

What they need is the encouragement, freedom and space to innovate. They need backing to experiment and take sensible risks, not rigid performance management from on high.

The private and voluntary sectors also have a vital role to play in bringing innovation and challenge into the system.

Of course private and voluntary providers must be effectively commissioned and regulated, within a properly managed system - not the free market, free-for-all that this Government is putting in place.

But it would be a real mistake to slip back into old ways of thinking, and attempt to block rather than encourage the benefits these services can bring.

To most people who think about the challenge of running a decent public sector on limited budgets, that is all perfectly sensible. It is also, however, by the standards of recent Labour party caution in the discussion of public sector reform and given the reactionary mood in some corners of the wider labour movement, quite a departure. Brave, even. A modest burst of level-headed realism from a shadow minister about the challenge of running services in straightened times, acknowledging the need for innovation and reform that might not always be popular at first - I wonder if it will catch on.

17 comments

reddeviljp's picture

Labour could just lie like the Tories and do what Portillo said: 'They didn't say they would change the NHS because they knew if they did they wouldn't be elected.'

Jacky Davis's picture

This ignores the very expensive NHS market, set up by Thatcher and perpetuated under the last government, which has been rejectd by the devolved nations but which continues to be viewed as immutable by all three major political parties in England

It is estimated to cost 10 - 12% of the NHS budget (odd and convenient that no-one knows an exact figure) ie about £12 billion a year. That would buy a lot of healthcare.

If you want to think innovative think about abolishing it. Otherwise 'innovative' is just more annoying jargon to staff who are too busy to see beyond the next patient and whose managers are off playing jargon bingo or ticking boxes

As for 'care in the community', its uncritical embrace ignores the fact that it doesnt save money and the infrastructure is not in place.

The evidence for the 'innovation' resulting from the privae sector would be welcome if you have it. I havent seen any written up. Meanwhile their 'challenge' is mostly through the courts when they dont win contracts - which they will mostly do given the cost of tendering for non multinationals

This is tired and disappointing old stuff and wont get the NHS out of the hole into which it is disappearing.

Stuart Eels's picture

What's this?

I have looked in vain since the story broke about the Rotherham case of Foster parents suddenly not being acceptable because they are members of UKIP in much the same way that I kooked in vain for the story of Jimmy Savile on this blog when it broke.

It seems that when a massive story(and it is) breaks that doesn't coincide with certain agendas,SAD!

Sid Cumberland's picture

It isn't a massive story. SS should have checked that the children's identity/culture/religion would be protected before they placed them. They didn't. Now they have, and they've corrected their error. Move on.

DK's picture

Rafael: Why do you take it for granted that "realism" and "credibility" mean cutting government budgets? Given the global crisis--and new ones to come, like global warming--it's clear that "credible" government and "realistic" measures for response can only come from reversing the conventional wisdom of the last 30 years, and moving back to the larger governments and increased regulation that actually worked fairly well. Any party that does not call for bigger government and increased spending is, quite simply, not offering a "realistic" response to the current situation. And Labour today is only very marginally less deluded than the Tories. Let's have some real realism.

RH47's picture

Precisely.

RH47's picture

Oh dear - the same old metro-consensual gang-bang rhetoric about 'reform' of public services.

This is the same tired old vacuity which has stifled really creative thinking about the best ways to achieve social goals with finite resources. We'd never have had the NHS in the first place if such had infected post-war reconstruction thinking.

Yes, there are problems - but the regurgitation of half-digested market nostrums are no solution.

ken power's picture

as a canadian living in the uk i don't understand all the 'necessary' cuts and tight budgets needed by the nhs. the nhs is superb and runs on a budget far far less than the canadian health service. it is cheaper still than the american and better and serves all the people not just 80%. all this privatization is absolute neo-liberal nonsence. want to help the nhs, easy. ban all private care and insurance and share holders (not the production of needles etc.) , double the budget so it equals canada or triple it to equal america, then pass a law to make certain that 80% of that tripled budget goes to those working fist hand with those in need. then relax have a holiday and address the other challenges without all the hyped up pressure. job done.
all other arguments are neo-liberal rubbish to make profits for their mates.

Richard Blogger's picture

"That is because vast old district general hospitals are a desperately outmoded way of looking after people, many of whom have chronic conditions that should be treated not in hospital beds but at home or at local clinics."

No, you miss understand. If anything there is a lack of capacity in DGH's and there will be a greater demand on the capacity of DGH's as the population ages. There is little evidence that moving treatment out to the community will save any money, in fact there is more evidence that *centralising* services is more efficient and safer. If you move services out to the "community" you will either have to make specialists spent time inefficiently travelling, or the service will be delivered by less specialist staff: a diabetic will be seen by a practice nurse at a GP practice rather than by the diabetic consultant in the DGH. This will be undoubtedly cheaper on the surface, but long term will it be cheaper?

Where reconfigurations are needed are if the DGH is in the wrong place. This government believes in competition, and competition means there must be excess capacity. But excess capacity may mean that a hospital will not be able to generate enough income. We also see some services being closed because there is not enough patients to employ enough specialists and so the service is unsafe (this has happened with A&E departments and child heart surgery centres).

Don't assume that reconfigurations are simply about closing DGHs. That is tired thinking.

Azhar_bihari's picture

That's not correct. Having local diabetic intermediate services is actually cheaper. Most diabetic patient do not benefit from seeing a consultant once a year. Most forward thing hospitals are putting this into action. That said running down all DGH's is not the answer as acute beds are already in short supply.

Posh Tosh's picture

I wonder if you are in hospital in Yorkshire and a UKIP voter, would you get killed by the jackboot socialist there that take chidren off foster-parents for being in a democratic party.

I would not vote UKIP, but I respect the rights of other to exist in a democracy.

Well if we had one!

Posh Tosh's picture

'children'

Hugh C Markey's picture

Her Majesty's government, and I mean that most sincerely folks, may be pants at fighting wars abroad but just look at what they've done in the last two-and-a half years.
And yet here is Cameron is holding out the begging bowl again. What percentage of EU funds is made up of UK contributions. No creative accounting from the Crooked MIle, thank you.
Just as the 1945 Labour government had to restore and rebuild a 'bombed-out' Britain, the next Labour government will be faced with a similar problem with the perps, Tory Vandals, just across the aisle.
Talk about friendly fire!

Shock and Awe Politics

A realist's picture

The last labour government poured lots of money in to the nhs and modernised it. As a result of their actions, many of my family had operations and I will be forever grateful. I know that with cuts to services, those life enhancing and life saving procedures may not have been available.

However, I have worked in the nhs and whilst medical records staff and bureaucrats are definitely needed, a new breed created by Labour were allowed to dictate to clinicians, budgets for medical decisions. This is wrong. Working as a health care assistant in a local hospital that Labour closed in the name of centralisation, the ward sister had funds taken away for care to pay for coffee machines and modern managers full of waffle, whilst laying off medical staff and told to save on medical supplies. They didn't look for better prices for the supplies, oh no- instead they just told us to stop giving pads to the incontinent or lay of staff that took them to the loo. Hence resulting in laser treatment needed for bed sores from sitting in urine.

I've worked in a hospital laundry and have seen surgeons gowns, not fit for purpose, where even the outsourced private firms were shocked at lack of funding for such items. Because, any of us could be a patient in these wards one day.

The conservatives on the nhs are thick. My father had private health insurance from his bank for himself and his family. Two of the operations he had done were in the nhs and the one private one that went wrong, had to be corrected in the nhs. Now i would ask the thick as thick conseratives- where are most of your privately funded operations done? In nhs hospitals!!! Doh!!! So- think on. Where are you going to have your private health care operations done- in starbucks? Yet they seem intent on destroying the nhs. That is where all the facilities and expertise is.

People are left in wards without people to feed them or take them to the loo- as this is not seen as an issue by pen pushing bureaucrats.

When you are old and sitting in your own sick, poo and urine and in pain, perhaps you may wish that you looked after the nhs- not to make a quick buck, but as an accountable, rational organisation that could make your life more comfortable.

mike cobley's picture

Yes, there seems little difference in the actual base doctrine here. As a citizen, I object strenuously to the uncounted millions which are leeched out of the NHS budget in order to pay for private sector profits, shareholder dividends, and exec bonuses. I do not see this as money well spent, but clearly Labour has still to wake up and smell the rightwing pillaging of the public sector. Ed, wake up!

JacquesOuze's picture

Bollocks - this is nothing more than the same old, same old with a red coat of paint rather than a blue one. No end to the wasteful, bureaucratic purchaser, provider split, no end to outsourcing to parasitic, self-serving private sector firms, no end to the dogma of choice and competition and disruptive innovation. The neoliberal consensus rules. Until someone (of any political stripe) takes a step back, does some serious analysis of policy and really gets their thinking caps on, we are doomed to have to put up with this garbage.

Barrie J's picture

I would like to think that millions of people would agree with you but when did a politician listen to or care what the public think.
Vested interests.

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