A hell of a lot of waste goes on in public services

How do we stop the carpet-baggers running off with the silver?

It is fashionable, these days, to refer to the state as a commissioner of services rather than a provider. From health to education, maritime rescue to employment services, the state - in the form of local as well as central government - is commissioning the services it once provided.

Inevitably, the people once responsible for managing a service are stepping back from the frontline and learning how to navigate the tendering and procurement processes that are part and parcel of spending taxpayers' money.

But, according to the OECD, “the volume of transaction and the close interaction between public and private sectors create multiple opportunities for private gain and waste at the expense of taxpayers”. Minimising the risk of fraud, corruption and mismanagement of public funds requires “transparency throughout the entire public procurement cycle”: taxpayers and service users are better protected when the public can help public servants hold private providers to account.

So how does the hands-off approach that seems to be commonplace in the UK help make sure public money is delivering public gain?

A survey by the OECD shows the UK is the only country out of 34 major economies that does not allow the public to see information about the selection and evaluation criteria. This means it is difficult to know if the recipient of public money is spending it as agreed. Nor does the UK reveal tender documents and only sometimes will it justify its decisions. And, if contracts are modified after being awarded, there is no policy to reveal this to the public.

At a local level this has the effect of taking power away from the local commissioners who, when they can see money has been spent on failed promises and missed targets, should be demanding delivery or remedy.

Just look, for example, at the myriad organisations that have sprung up to provide employment related services to local authorities. The range of services and the variety of programmes is befuddling and with no possibility of public scrutiny, local authorities are on their own when it comes to trying to hold their private-sector providers to account.

This is not a case of big companies muscling-in. Small, so-called “social enterprises” are involved too. With colourful stories and fresh-faced bravado they sell their services with, it would seem, no hope of delivery.

For the Newhams, Tower Hamlets and Southwarks, for example, this must be deeply frustrating: knowing they have paid out, have received nothing in return and face months of arguing and unaffordable legal bills if they try to recover their money. This is nothing compared to the impact on taxpayers, let alone the people that should have received the support and help that was offered, paid for and never delivered.

Perhaps public services need public scrutiny to help our remaining public servants stop the carpet-baggers from grabbing the silver. At the moment they seem pretty ineffectual but I would argue that it’s not all their fault.

Photograph: Getty Images

Spencer Neal is a reformed publisher who now advises on media and stakeholder relations at Keeble Brown. He writes about the ironies and hypocrisies that crop up in other peoples' businesses. He is also an optimist.

Photo: Getty
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People are not prepared to see innovation at any price - we need to take care of our digital health

Correcting the course of technology in Britain does not need to mean taking backwards steps and becoming an anti-innovation zone.

As individuals, we have never been better connected. As a society, we are being driven further apart.

Doteveryone’s People Power and Technology report, released this week, found that half of the 2,500 British people we surveyed said the internet had made life a lot better for people like them - but only 12 per cent saw a very positive impact on society.

These findings won’t be news to most people living in Brexit Britain - or to anyone who’s been involved in a spat on Twitter. The fact that we’re constantly connected to our smartphones has not necessarily improved our communities or our understanding of one other, and the trails of data we’re leaving behind are not turning into closer social bonds.

Many of the positives we experience are for ourselves as individuals.

Lots of consumer tech puts simple self-sufficiency first - one-click to buy, swipe right to date - giving us a feeling of cosy isolation and making one little phone an everywhere. This powerful individualism is a feature of all of the big platforms - and even social networks like Facebook and Twitter, that are meant bring us together, do so in the context of personalised recommendations and algorithmically ordered timelines.

We are all the centre of our own digital worlds. So it is no surprise that when we do look up from our phones, we feel concerned about the impact on society. Our research findings articulate the dilemma we face: do we do the thing that is easiest for us, or the one that is better for society?

For instance, 78 per cent of people see the Internet as helping us to communicate better, but 68 per cent also feel it makes us less likely to speak to each other face-to-face. 69per cent think the internet helps businesses to sell their products and services, while 53 per cent think it forces local shops to compete against larger companies online.

It’s often hard to see the causality in these trade-offs. At what point does my online shopping tip my high street into decline? When do I notice that I’ve joined another WhatsApp group but haven’t said hello to my neighbour?

When given clear choices, the public was clear in its response.  

We asked how they would feel if an online retailer offered free one-day delivery for lower income families, but this resulted in local shops closing down - 69 per cent found this unacceptable. Or if their bank invested more in combating fraud and cyber crime, but closed their local branch - 61 per cent said it was unacceptable. Or if their council made savings by putting services online and cut council tax as a result, but some people would find it hard to access these services - 56 per cent found it unacceptable.

It seems people are not prepared to see innovation at any price - and not at the expense of their local communities. The poorest find these trade offs least acceptable.

Correcting the course of technology in Britain does not need to mean taking backwards steps and becoming an anti-innovation zone.

A clearer regulatory environment would support positive, responsible change that supports our society, not just the ambition of a few corporations.

Some clarity about our relationship with web services would be a good start. 60 per cent of people Doteveryone spoke to believed there should be an independent body they can turn to when things go wrong online; 89 per cent would like terms and conditions to be clearer, and 47% feel they have no choice but to sign up to services, even when they have concerns.

Technology regulation is complicated and fragmentary. Ofcom and the under-resourced Information Commissioner’s Office, provide some answers,but they are not sufficient to regulate the myriad effects of social media, let alone the changes that new technologies like self-driving cars will bring. There needs to be a revolution in government, but at present as consumers and citizens we can’t advocate for that. We need a body that represents us, listens to our concern and gives us a voice.

And the British public also needs to feel empowered, so we can all make better choices - adults and children alike need different kinds of understanding and capability to navigate the digital world. It is not about being able to code: it is about being able to cope.

Public Health England exists to protect and improve the nation’s health and well-being, and reduce health inequalities. Perhaps we need a digital equivalent, to protect and improve our digital health and well-being, and reduce digital inequalities.

As a society, we should not have to continually respond and adapt to the demands of the big corporations: we should also make demands of them - and we need confidence, a voice, and representation to begin to do that.

Rachel Coldicutt is chief executive of Doteveryone.