Tag Archives: John Redwood

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The magic extra million is a public sector constant quest

If the state is spending £100 million on providing a service the debate will be about providing an additional £1m to make it better. The possible extra £1m is endowed with magic powers by the service providers and often by the political opposition. The extra one million we are told would make all the difference to the quality and performance. A government that refuses it is mean, is cutting the service. A government which votes it is caring.

The trouble is it is simply not true that the extra million will tip a service from poor to good, or will make all the difference to the quality and quantity delivered. All the energy that goes into debating the extra million diverts the energy that should be going into debating how we spend the £100 million. It would be an odd programme where all £100 million was well spent, an odd service where you could find no ways of being more efficient and delivering higher quality.

Sometimes if you ask how would the extra £1m be spent it becomes obvious that it is not the answer. Of course some services need more people to deliver them well, or higher pay to motivate and retain good people, or more capital equipment to make the task of provision better. Sometimes extra money is part of the answer. The danger is that politicians will see extra money as the sole answer, when if you vote more money you still need to supervise how it is spent, and how the rest of the money is spent which it is topping up.

The private sector concentrates more on outputs than inputs. If I go to a shop they do not tell me how much it costs them to run and staff the shop. Shop A does not claim to be better than Shop B because it spends more on wages, computers and lighting. The shops compete on service and appearance without  saying which is the low cost and which is the high cost store. Those running the shops are always trying to get the costs of running the shop lower, whilst preserving or improving quality. Sensible employers also know you do not have a good quality service if you treat staff badly and pay them too little.

The public sector needs to concentrate more on outputs, service volumes and quality. Some of the services will need more money to make them better, but we need to start with an honest analysis of what needs doing to expand or improve them, which includes working out how well we are spending the large sums already committed.

The public sector has an approach that adds in something called “efficiencies” . Some of these are sensible improvements in purchasing, staff use and service delivery. Some are cuts in service dressed up as efficiency improvements.  What we need is a management process based on continuous improvement, and implemented by using talent well within the organisation. Good public service providers need to be good employers, training and mentoring staff and helping staff to worthwhile careers based on pursuing service excellence.

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Business rates

I have been lobbying the government along with other MPs to do more to alleviate high business rate increases hitting some firms in our areas under the revaluation proposals. The government has offered substantial rate relief to many small businesses, but there remain numerous businesses that will experience rises in their rates bills at a time when they can ill afford the extra money.

Today the Communities and Local Government Secretary announced that he is working on a scheme with the Chancellor to offer more help, which will be welcome.

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UK growth accelerated in the fourth quarter of last year

The fourth quarter saw UK growth speed up to 0.7% for the three months. The quarterly pattern last year according to the ONS was 0.2% in Q1, 0.6% in each of Quarters 2 and 3, and 0.7% in Q4.  The ONS says this amounts to 1.8% growth for the year as a whole, though the four quarters as reported gives you a figure of 2.1%.  What is clear from these figures is the economy grew faster after the Brexit vote than before by a decent margin, the opposite of the official and expert forecasts at the time.

As the ONS rightly said “In the fourth quarter the UK experienced the strongest arte of growth among European groupings and G7 countries”. Let’s hope the Treasury adjust their forecasts for our economy in the Budget statement, as their recent forecasts have been far too low.

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Lords pass Brexit Bill unanimously

Parliament has now spoken. A large majority for Brexit in the Commons is now matched by a unanimous vote in the Lords.

The Supreme Court has succeeded in delaying the letter but not in stopping it. As I thought at the time of the discussions on the Supreme Court decision it is the view of Parliament we should send the letter. If it had not been Parliament would have said so and voted accordingly prior to the Court decision.

I expect the Lords to approve the Bill at third reading in a similar way. It would be odd indeed if they changed  their minds after yesterdays important vote.

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Design and use of UK airspace consultation

The Government is currently consulting on proposals to:

• Support the reform of airspace, thereby maximising the economic and social benefits of aviation

• Minimise the negative local impacts of aviation

Ministers are seeking comment on proposals to update policy on the management of UK airspace including:

• The role of an Independent Commission on Civil Aviation Noise to ensure noise impacts are openly considered

• Providing industry with the ability to assess noise impacts and guidance to help them manage change more effectively

• Bringing compensation policy for airspace changes in line with policy on changes to aviation infrastructure

• Greater flexibility for London’s major airports, so they can adapt noise management to the needs of their local communities

The consultation can be found here: http://bit.ly/2m3y2Hj. It closes on 25 May 2017.

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