Failures in financial planning mean the government is being forced into poor and reactionary spending decisions, instead of getting ahead of problems before they become crises, spending over £10bn in five years just to keep troubled services going, according to research by CIPFA and the Institute for Government
The two bodies have published their performance tracker looking at 100 data sets across nine key public services. CIPFA says this shows hospitals and prisons are spending more, with no sign of improvement in key pressure points, while schools and adult social care have had emergency cash injections, but there is no clear plan for what happens when this extra money runs out. GP numbers are not rising despite the government’s plans to improve the service.
The performance tracker also indicates government does not have enough data to manage the risks around vital neighbourhood services, like bin collection and road maintenance.
The report concludes that in services such as prisons and hospitals, the chancellor has no choice but to spend more. When it comes to schools and adult social care, the government as a whole must make tough and increasingly urgent policy decisions. It calls for the creation of a new watchdog (similar to the Office of Budget Responsibility) to scrutinise the assumptions underpinning government decisions about public spending.
Rob Whiteman, chief executive of CIPFA, said: ‘Government must go beyond moving from one reactive cash injection to the next, because this fails to assess sustainability of many public services. It may now be more effective to stop some services than see them collapse.
‘The choices facing the chancellor are limited, but government must do better at medium to long term financial planning using one set of robust numbers that underpin policy assumptions and budget allocations. This requires an honest assessment of current performance and what is affordable, with higher spending in some areas.’
Performance Tracker, a data driven assessment of the performance of public services, is here.
Report by Pat Sweet