Home > 3rd Sector, Budget, Local Government, Local Politics, National Politics, Poverty, Principles, Taxation, Uncategorized > Bankrupt Britain: Is the death of Local Public Service provision avoidable and will it lead communities to provide their own not-for-profit services?

Bankrupt Britain: Is the death of Local Public Service provision avoidable and will it lead communities to provide their own not-for-profit services?

Whilst it may not be generating the media frenzy or sensationalist prose that usually grabs everyone’s attention, recent days have seen a number of different stories emerge that confirm much about the state of Local Government and the services we contribute towards with our Council Tax.

The common theme is of course money – or rather the lack of it.

Those of us taking the collapse of local public services seriously may already be well aware of the perilous state of funding and how bleak the outlook actually is.

However, despite the many cuts and reductions in services that people have witnessed across the UK already, it is the continuing reliance that today’s politicians have placed in using yesterday’s methods to solve tomorrows problems should perhaps give us even greater cause for concern.

This week alone, one Police & Crime Commissioner covering a Conservative area has suggested that he will seek a referendum on raising the local Police Precept element of Council Tax by no less than 25%, whilst the Leader of Newcastle City Council is now on the record as suggesting that the reduction of funding may soon lead to social unrest, with an expectation that an incoming Labour Government will simply change the ‘settlement’ – and thereby solve the problem after May.

Whilst both of these Politicians are in unenviable positions, neither plan would work in the best interests of the electorate, even if they were to be seen to solve the problems in the immediate term. And by immediate term, we are probably talking just 12 months before the very same problem is there to be solved all over again.

Adding yet more to the Tax burden of individuals and households may be an easy decision for politicians, but isn’t sustainable for the people who are paying.

Meanwhile, more money coming from central Government when the Country is already effectively bankrupt spells disaster of another kind, as the accumulation of National Debt simply cannot continue with each successive Government that comes along attempting to shelve today’s problems for tomorrow by printing money like it was all some kind of game without any real cost.

The system of local public service delivery is broken not just because of a lack of funding today, but because of decades of mismanagement focused on targets, working conditions and the development of the protectionist culture which serves everyone’s interests but those of the very people who the services were initially created to serve.

These cultural and institutional problems have not been created locally, but they are certainly propagated locally.

One of the most serious ‘injustices’ served upon every Council Tax Payer, is the seismic amount of our contributions that actually go into the Local Government Pension Scheme. It has increasingly done so since the then Labour Chancellor Gordon Brown raided Pension Funds in 1997 and left the general public to pick up the tab for the subsequent deficit which would otherwise have surely obliterated gold-plated Local Government Pensions.

It would certainly be advisable to have a look at your Local Council’s Annual Budget and see just how much of your money goes into this Scheme. A good guess would be that rather than being anywhere near the red, your local services would be well and truly in the black if you weren’t funding someone else’s retirement plan, just because of the last Labour Government’s fiscal free-for-all, which removed many of the regulations that actually helped a great many of the very people who supported them.

Solving the problem of how to afford what local public services cost us without losing services, reducing services or there being a need to dispose of assets which basically belong to us all, may have already reached a stage where it will seem impossible to do so without the measures already discussed.

But with such options not being real choices, we will all soon have to accept that the way local public services are delivered is going to change; and that the change that comes may not be in anyway better.

Service sharing between Authorities and even Police Forces is now well under way and is likely to accelerate significantly as the reality of the UK’s financial predicament continues to bite hard.

However, the distinct irony of this pathway is that sharing services does indeed take the management and handling of public services further away from the people themselves. And the point should not be lost on anyone that the real cause of much of today’s political disquiet – i.e. taking decisions further away from people will only be made worse by what is yet to come as a result of this.

The political and government infrastructure that could have solved problems like those raised by the Scottish Independence question has already existed for at least two generations in the forms of Parish & Town Councils, District Level Councils and County Councils.

The problem is that Westminster based politicians do not want to empower local representatives at any cost.

Whilst continually paying lip service through concepts such as ‘Localism’ – which has been such a big sound bite of the Coalition era, the reality has been that all changes within Local Government have simply been pushing more and more power back to London, rather than devolving local decisions to local people as any Government focused upon what is really best for the electorate surely would.

This reality may well give the lie to the ‘vow’ which we all awoke to on the morning after the Scottish Referendum. It almost certainly paints a picture which doesn’t look good for us all locally. But when local politics is itself arguably just as rotten and as focused on itself as Westminster is, what can we really expect?

The reality of what lies ahead should hit us hard, because much of what we today take for granted in terms of services supporting both communities and individuals may soon be simply unaffordable – even though we seem to be paying through the nose for it.

With Government Organisations and structures maintained by a culture which nobody is willing to reform, Local Authorities are likely to lean ever more heavily in the future upon contractors and trading companies.

This is a considerable leap in the direction of privatisation and one which could very quickly lead to the token ability of Local Council’s to affect change and decision making on the part of the communities that they represent to be seen for what it really is.

It is a very real prospect that the only services that many people perceive as being what they receive for their money will be handled by private contractors. Companies who are delivering services to the public whilst making a profit at a lower price than what it would cost the public to deliver itself.

With even fortnightly bin collections now at risk, it is not in any way hard to imagine paying for your rubbish to be collected by a company you pay directly – as you would do with electricity, gas or your phone. Indeed it may be little accident that ‘utility’ companies already run such services on behalf of Councils and many of us will quickly wonder what we are paying Council Tax for if we don’t see any Police on the streets and have our rubbish collected by someone else.

Without immediate and meaningful reform, it is a good guess that social enterprise will be the only way that we will be able to have local public services delivered, which are seen to be free at point of delivery or kept at a cost which is both affordable for users and sustainable for the organisations delivering them.

This is unlikely to be restricted to just local service delivery, and whilst utilities, transport and communications are currently little more than the cash cows of the City and its Pension Funds, keeping it real dictates that sooner or later the political classes will have to accept that allowing our society to function at its most basic level requires nothing less than that all services provided for the benefit of the wider community and the individuals within it must be provided on a not-for-profit basis and with best value to the end user firmly in mind.

Regrettably, with much of the infrastructure already disposed of which will facilitate this at National Level, and the same process now progressively happening through the back door at local level, it is communities themselves that may well have to raise the funds to create the new trading companies that will do this.

With crowd funding a good example of the options now available, it is certainly possible to do so.

But as we also wonder why we are paying more tax on everything but receive even less for what we give…won’t we all be asking the question why?

 

image: dailymail.co.uk 

 

  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: