Efficiency savings - how not to fund manifesto pledges

15th Apr 2010

" It is election time and therefore all parties have a whole host of policies to fund. The Tories want tax incentives for married couples, Labour want to provide more care for the elderly, and the Lib Dems want an income tax cut. The problem is that no party has or will spell out exactly how they will pay for these policies.

They have all outlined cuts to some big programmes but even these headline grabbing initiatives will not be enough. Instead all parties are relying on efficiency savings and reductions in waste to pay for their programmes. This is not a new idea.

Political consultants and those interested in campaigning know that all parties at every election have complained about government waste and claimed that they will stop it all without effecting frontline services. None has succeeded.

However, this is an opportunity for non-state public service providers. As the state withdraws from its role in service provision, so high quality providers should be able fill the gap and expand into spheres where public policy has forced a change in state dominated services. Public sector cuts may lead to independent sector opportunities."

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