Big Society

Debate between Jon Cruddas and Sam Gyimah

Monday 28th February 2011 Commons Chamber

[Jon Cruddas]

I stand corrected.

There are some points of common ground in the texts that I have seen, which are interesting and add to the sum total of public knowledge. Aspects of the big society could lead to people having more control over their lives and to the creation of a more responsible society. That is a good departure point for the discussion today. Labour should welcome that and support empowerment and social responsibility.

I therefore refer Members to a pamphlet entitled “The Politics of Decency” written by my right hon. Friend the Member for Salford and Eccles (Hazel Blears), who cannot be here today, a number of years ago, which set out many of the terms of the current debate; her substantive policy proposals predated many of them. However, despite all the warm words that I am offering for the agenda, my reservations start to become apparent when we talk about delivering empowerment and social responsibility on the ground.

I suggest that, for three basic reasons, the Government agenda will not succeed in delivering on its stated objectives. First, it is weak on the role of the state. Witness the amendment that was not selected, which clarifies some of the views of the Conservative party on the matter. Secondly, the agenda does not have a robust enough approach in its criticisms of the private sector. Thirdly, the agenda is essentially silent on central issues of social justice.

Fundamentally, the big society agenda is about a redistribution of power and responsibility away from Whitehall and towards local government, intermediate organisations, local communities and individuals. However, the Government will be unable to achieve that. Consider the argument that the Government are uncertain, to put it in a charitable way, on the role of the state. The Prime Minister regularly acknowledges that the state will have to play an active role in building the big society, but what is happening on the ground? The Government want to encourage giving, but despite lobbying from the charitable sector, they have said that they will drop transitional relief on gift aid, worth around £100 million a year. The Government want to encourage community ownership and management of local assets built around the right to buy in the Localism Bill, but in reality they prefer to flog public sector assets off to the private sector. Witness what happened on the forests. A similar thing is happening with the £500 million of regional development agency assets. There is clear potential for something similar to happen with the £37 billion of primary care trust assets.

Moreover, the Government say that they want more third sector delivery of public services, but the detail of their policies will not necessarily enable that to happen. For instance, where their reforms are most advanced in terms of welfare to work, the scale and cash-flow requirements of the contracts mean that the vast majority will go to very large private sector firms, which then may or may not subcontract to charities or social enterprises, and may or may not do so on a fair basis. I have heard that the welfare Minister in the other place recently said that he anticipated a “perfect car crash” among providers. That is dangerous, because of the human consequences, and because providers will go to the wall as a result. Future examples could include offender rehabilitation and health.

Another example is the way in which the Government want to encourage public sector workers to spin out and form independent mutuals. I was recently told that the Secretary of State wants one in six public sector staff to do so by the end of this Parliament. Under the Labour scheme, those public sector workers could keep their pensions, received significant transitional support, and were guaranteed a three-year contract.

I tentatively suggest that none of that would be the case under the Tory plans. Communities have a right-to-buy asset, but minimal support to do so. They have the right to challenge local public services, but minimal support to do so. Public sector staff have the right to provide or to spin out, but minimal support to do so. We must consider alongside that the inability to deliver because of the cuts. If the big society is about more than informal acts of generosity, we need the infrastructure to provide it: people to train and manage volunteers, and people to win public service contracts and ensure that the services are delivered to a consistently high standard. That infrastructure has been hit. The Association of Chief Executives of Voluntary Organisations estimates that the voluntary sector will lose £1 billion as a result of cuts, the loss of gift aid transitional relief and the rise in VAT.

The cuts to the sector are beginning to stack up. Charities and voluntary groups in London have been subject to cuts of £50 million in the past 12 months. Council community grant programmes have been cut up and down the country. The list is growing by the day, and includes mental health services, autism charities, rape and crisis support centres, stroke associations, career support services, carers, housing and homelessness charities, YMCA branches, citizens advice bureaux and children’s charities. Similarly, some cuts to benefit services will leave people feeling less in control of their lives, not more. They include cuts to disability living allowance, tightened thresholds for social care, cuts to Supporting People budgets and cuts to housing benefit. That reflects a failure to deliver the big society.

The Government are silent on the private sector. If people feel disempowered vis-à-vis the state, the same applies to their relationship with the private sector. The Government essentially say nothing on redistributing power and responsibility in that regard. For example, they propose to reduce workers’ rights in the “Resolving workplace disputes” consultation, yet beyond praising best practice, they do not appear to have much appetite for doing anything practical to encourage more corporate social responsibility by giving time or money to good causes. Such contributions are significantly lower in the UK than they are in the US, which relates directly to levels of civic engagement and volunteering. For example, 82% of people who do not volunteer but would like to do so cite lack of time as a reason, and research by the Cabinet Office recently found that half of employees would like a volunteering and giving scheme to be established by their employer.

[Mr Sam Gyimah (East Surrey) (Con)]

The hon. Gentleman speaks as if the past 13 years have been a rosy world in which the long arm of the state has been able to deliver all the public goods that we need without any problems. Is it not the case that we have tested to destruction the theory that the state knows best? We should harness the creativity of individuals and communities to partner the state to deliver the services that we need at local level.

[Jon Cruddas]

If the hon. Gentleman will bear with me for literally one minute, I will come on to a couple of instances that are a hallmark of the previous Government’s record, which should be compared and contrasted with the collapse in infrastructure that will result from providing the big society on the ground.

The Government say little on fairness in talking about the big society. There is a strong correlation between levels of deprivation and levels of civic engagement, with more deprived areas less likely to participate in volunteering. Third sector organisations tend to be more dependent on public money in more deprived areas, and more deprived areas have tended to get a worse deal from the spending review. The cumulative result is likely to be that the infrastructure for delivering the big society will be hit hardest in deprived areas that are less able to deliver the big society vision. To my mind, where the Government’s big society reforms genuinely empower people and lead to a more responsible society, Labour should welcome them. Conversely, where their reforms do not empower people or lead to a more responsible society, Labour should oppose them.

Finally, I want to make a couple of points about Labour’s record. Between 2000-01 and 2007-08, the voluntary sector income grant grew by just over 40%, from £25 billion to £35.5 billion, of which individual giving accounted for more than 40%, and the voluntary sector work force grew by 124,000. Labour set up the Office of the Third Sector, and the current Leader of the Opposition was the country’s first ever Minister for the Third Sector. I think that we can argue that under Labour the third sector thrived. It appears that some define the big society as a national joke, but I have to say that I fear—