Open Public Services White Paper

Debate between Oliver Letwin and Baroness Jowell

Monday 11th July 2011 Commons Chamber

[The Minister of State, Cabinet Office (Mr Oliver Letwin)]

With permission, Mr Speaker, I would like to make a statement about the open public services White Paper.

There could not be a more important issue than this. Public services save lives, rescue people from disease and ignorance, and protect people from crime and poverty. Much of what is done by our public services is fantastic and they are among the best in the world, but we can do even better. This Government have a vision, which is set out in this White Paper, about how we can do better.

The central point is that when public services are not up to scratch, those who are well off can pay for substitutes, but for those who are not well off, there is no opportunity to pay for substitutes. We need to give everybody the same choice in and power over the services they receive that well-off people already have. This White Paper sets out how we will put that vision of choice and power for all into practice.

Our principles are clear. They are choice, decentralisation, diversity, fair access and accountability. We will increase choice wherever possible; power will be decentralised to the lowest appropriate level; public services will be open to a diverse range of providers; we will ensure that there is fair access and fair funding for all; and services will be accountable to users and taxpayers.

I will give examples of how those principles will apply in specific public services that cater for specific individuals. First, we will ensure that every adult receiving social care has an individual, personal budget by 2013, and we are moving towards personal budgets in chronic health care, for children with special needs, and in housing for vulnerable people. That means that there will be more choice and power for people who need those services. They will be able to choose what their money and the taxpayer’s money is spent on.

Secondly, we are making funding follow the pupil in schools, the student in further education, the child in child care and the patient in the NHS. That means that there will be more choice and power for people who need those services. They will be able to choose where the money is spent.

Thirdly, we are providing fair access so that, for example, a pupil premium follows pupils from disadvantaged backgrounds and a health premium is paid to the local authorities that achieve the greatest improvements in public health for people in the least healthy parts of the country. We attach huge importance to that agenda. We want genuine equality of opportunity and genuine social mobility.

Fourthly, we are providing open access to data so that people can make informed choices about the services they use, such as crime maps, whereby they can see whether the local police are preventing crime in their street; health outcomes, whereby they people can see which hospitals and GPs achieve the best results; standardised satisfaction data for all public services, whereby they can see exactly which service providers are providing the quality of service they want; and open, real-time data on road conditions, speeds and accidents along our motorways, whereby they can make informed choices.

Fifthly, we will provide a new system of redress, through beefed-up powers of the ombudsmen to step in when a choice to which people have a right is denied. However, we are going further. We are not only concerned about increased choice and power for individuals, we are also determined to increase choice and power for communities so that they can determine how money is spent on their communal public services. We will do that by making it far easier for communities to take over and run public assets and assets of community value, by giving them the right to build houses for their own children and by giving parish councils and community groups the right to challenge, enabling them to take over local services and making it easier for people to form neighbourhood councils where there is none at present. We will also give neighbourhoods vastly more power to determine their own neighbourhood planning and the ability to challenge the local police at beat meetings, informed by crime maps. Let us remember that the people at those meetings will each be electors of the local police commissioner.

We recognise, of course, that some services will inevitably continue to be commissioned centrally, or by various levels of local government. Here, too, we are aiming at decentralisation, diversity and accountability. The White Paper sets out how we will use payment by results to transform welfare to work, the rehabilitation of offenders, drug and alcohol recovery, help for children in the foundation years and support for vulnerable adults. In all those areas, a diverse range of providers will be given a huge incentive to provide the social gains that our society so desperately needs by being rewarded for getting people into work, out of crime, off drugs and alcohol and into the opportunities that most of us take for granted.

To strengthen accountability, the White Paper also sets out the most radical programme of transparency for Government and the public sector anywhere in the world. To unlock innovation, the White Paper commits us to diversity of provision, removing barriers to entry, stimulating entry by new types of provider and unlocking new sources of capital. To ensure that public sector providers can hold their own on a level playing field, the White Paper sets out measures to liberate public sector bodies from red tape.

To encourage employee ownership within the public services, the White Paper sets out the measures that we are taking to promote mutualisation and employee co-operatives. To ensure that services continue if particular service providers fail, it sets out the principles for the continuity regimes that we are establishing service by service. [Interruption.] Marxist or not Marxist, in the past 13 months this Government have done more to increase choice and power for those served by our public services than the Labour party achieved in 13 years. The White Paper describes the comprehensive, consistent, coherent approach that we are taking to keep our public services moving in the direction of increased choice and power for service users, so that we can provide access to excellence for all. That is the aim behind the White Paper, and I commend it to the House.

[Tessa Jowell (Dulwich and West Norwood) (Lab)]

I thank the right hon. Gentleman for his courtesy in providing me with a copy of his statement ahead of time. I have to say that although I believe absolutely his sincerity in what he has told the House, his comparison with the Labour Government wins the parliamentary prize for blooming cheek, if that is not unparliamentary language. I would rather rely on the judgment of Reform, the right-of-centre think tank, about these proposals. It states:

“The Coalition may argue that these inconsistencies”

in the White Paper

“are good politics. In fact they are bad politics because they undermine confidence that the Government is serious about reform.”

That is the problem, because there is nothing new in this White Paper.

Today’s statement is typical of the Government’s approach to policy in general. As the right hon. Gentleman reflected, our public services, on which people of all ages in our country depend and which are often the determinant of whether their life is worth living, face significant challenges, particularly at the hands of the Tory-led coalition, which is making cuts too far and too fast. People live much longer and have ever-rising expectations, but it appears from the way in which this White Paper was launched that the Cabinet Office is more preoccupied with spin and presentation than in substantive proposals.

The White Paper contains few new ideas and even fewer new proposals. In most of the cases to which the right hon. Gentleman referred, the Government are lagging behind the action of the previous Labour Government. He referred to personal budgets. The Sunday Times was told several weeks ago that the right to a personal budget, which is now used by approximately 250,000 adults, was to be extended to those with long-term conditions and to children with special needs, yet there is nothing of that in the White Paper. The right hon. Gentleman also referred to the expansion of mutuals, which was also showcased in a variety of this weekend’s newspapers. Back in November, the Minister for the Cabinet Office and Paymaster General undertook to put in place rights to provide for public sector workers, meaning that they could take over the running of services, but no time scale for such proposals has been forthcoming.

Ahead of today’s White Paper, I set out three tests for public service reform. First, will the reforms make services more accountable and responsive to the needs of service users? Secondly, will there be clear accountability for how public money is spent, and will members of the public be protected? Thirdly and finally, will the proposals strengthen the bonds of family and community life?

The Government are failing the test of reform, because their policies are inconsistent between Departments and sometimes within them, and nothing more has been done to put communities in control or to make people more powerful.

My questions to the Minister, therefore, are these. Given that this much-trumpeted and much-awaited White Paper has not even caught up with the legacy of the previous Labour Government, who deleted the ambition from it: the officials or the Liberal Democrats? What are the plans for millions of people to become their own bosses, as was set out in the coalition document? What assurance does he give to those workers that there will be continuity of pensions and employment benefits? When will the coalition Government exceed and expand the proposals already put in place for personal budgets by the previous Labour Government? He may have received private advice that hospitals and schools should be allowed to fail, but will he make it absolutely clear, and publicly, that he will not allow that to happen? In the funding of those new services, will he also rule out competition by price?

The Reform report says:

“Viewed as a whole, the Government’s public service reform policies are all over the place. The Government’s failure to adhere consistently to its principles gives an air of unreality to the whole programme.”

The losers will not be Members of this House, or even members of the Government, but the millions of people up and down the country whose quality of life depends on the public services that they use.

[Mr Letwin]

I am grateful to the right hon. Lady for her critique, but I think she has to decide whether her objection is that the White Paper does not do as many of the things that the previous Labour Government were doing already—that was part of what she seemed to be arguing—or that the proposals will do damage. If she is maintaining both positions, she must be admitting that the Labour Government did great damage, which I doubt is what she wants to admit.

To some degree, the White Paper continues where the previous Labour Government left off—they did some things that we think were good and which we are carrying through, evolving and developing. That is a sensible and, I hope the House will agree, grown-up way of conducting politics because not everything our opponents think or do is necessarily wrong. However, the White Paper carries the previous Government’s programme much further, deeper and wider to deal with the very questions that the right hon. Lady addressed. For example, under the previous Administration, there was no proper system for continuity of service. One reason for the problems with Southern Cross—a legacy issue left by the previous Government—is that the previous Government did not design proper continuity-of-service regimes for the health and social care services. We are now attempting to design such regimes for all services. I hope that on mature reflection she will welcome that.

The right hon. Lady asked whether we would accept competition by price, which we have made abundantly clear we will not accept, including in the NHS. We want competition by quality, which is very different, although I assume she would agree that it makes sense to accept competition partly by price when trying, as the Government are doing, to tender through central procurement. That is certainly something that the previous Government did all the time. There are differences here, but they do not amount to inconsistencies; they amount to a coherent attempt to apply a set of principles differently in different services precisely because different services demand different treatments. She must know that. If she is claiming that much of this depends on what the Labour Government did, I would point out that they certainly did different things in different places. The White Paper is about carrying forward a programme that will benefit those using public services by giving them choice and power.