Conservatives U turn on decentralisation

The Tories are calling for a centrally-imposed freeze in council tax, as part of their commitment to localism.

I thought I might refer to their previous announcement on the subject of localism, and found that the page had been removed.

Luckily google cache comes to the rescue

All fine-sounding stuff of the type tories say when they are behind in the polls. 

And google gives us the date:

It is a snapshot of the page as it appeared on 21 Sep 2008 05:51:27 GMT.

That's 8 days ago. This page seems to have been "lost" suspiciously close to the date of the announcement of this new policy.

The old Dave said:

So I hope that in 2008 the Liberal Democrats and the Green Party will join us in putting pressure on the Government to decentralise power, and that together we can create a new progressive alliance to decentralise British politics.

And the Conservatives, Dave, don't forget the Conservatives.

Hat tip: Quaequam blog!

Reinventing the State Chapter 17: Reforming the NHS - a Local and Democratic Voice

Richard Grayson helpfully summarises his own argument:

Without [a democratic authority], it will always be possible for everyone to blame somebody else without taking responsibility. Ministers can blame local bureaucrats, when those ministers have give the bureaucrats very little independence. Health care bureaucrats can point to rigid central controls, but can also blame the public for making supposedly unrealistic demands, when the bureaucrats have little incentive to engage with the public. The public can blame 'them' - usually the government or bureaucrats - despite the fact that the system allows the public to make demand after demand for high levels of local service without ever having to face their real cost.

The suggested solution is local democratic accountability.

Crucially, these elected local people need to have the power to raise [or lower] funds for the NHS so that any demand made by the public for higher quality [or lower taxes] can have a real price attached.

I have been a little mischeivous with my additions there. But I am not clear to what extent Richard is arguing that local accountability will make higher taxes more palateable. This is not such a useful line at the moment, when the NHS has just seen a massive cash input, much of which has not led to noticeable improvements. It would seem sensible to pursue efficiency gains to at least pre-splurge levels before seeking higher funding.

Anyway, Richard is at this point about to launch into an advocacy of adopting something like the radically decentralised Danish health system. However, it turns out that the Danish system has only just been reformed - January 2007 - and is now somewhat less decentralised than it was, although still one of the most decentralised systems around.

I must say that for me this leaves something of a question mark over the proposal. Shouldn't we give a new system some years to bed in before we praise it or emulate it? And why did the Danes centralise, even if only a little? But this is just a question mark.

The idea is to turn PCT duties over to county/city/unitary councils or elected health boards covering the same boundaries. Small authorities might choose to set up joint health boards. This seems sound enough.

I am a little puzzled still, because in the section on funding, Richard talks about a new tax - the NHS contribution - almost identical to, and partially replacing Income Tax, which would, along with NICs comprise NHS funding. Suddenly there is no mention of the locally raised share of NHS funding. This along with my loathing of hypothecation and of extra complexity in the tax system, made this a very disappointing conclusion to a good chapter.

And while localism is a big idea and a good idea, I don't think it is as big or as good as the expectation we have of it. Many people will be unimpressed with a policy that doesn't on the face of it change anything. What do we expect the different bunch of politicians to do differently? Are there no more ideas? Richard's pamphlet with Nick Clegg on education (pdf) was full of ideas.

This is a good retort to the Orange Book simply by opposing social insurance. And yet could not a local health board choose social insurance? It is pretty half-baked localism if it can't.

Reinventing the State Chapter 15: The Case for Localism - the Liberal Narrative

The problem with reviewing Chris Huhne's second chapter, making the case for localism in public service provision, is that it is by now an argument we are very familiar with. And one which I entirely support.

Peter Welch takes a thorough look at this issue in the context of the leadership election here. To paraphrase (or perhaps invent) Peter's question to Chris, it is this: Is localism the end of the story?

And would we rule out localities being permitted to introduce insurance or vouchers? Chris doesn't say, but if so the power of his own argument defeats him. And if not, it was strange of him to make such a fuss about ruling them out during the leadership election.

And finally, although I agree localism is the right policy, I am not entirely satisfied with having to say 'localism is the answer' on the doorstep. Why? For two reasons. Firstly, because there is no more confidence in the ability of local government than there is of any other level, there is a vicious cycle of insignificance and second-rateness about local politics, and rarely (at least round here) much local press scrutiny of local issues. Perversely it may seem easier to hold national politicians to account because at least they appear on Newsnight or the Today programme.

The second reason is that we are local politicians too. A policy worthy of the name must say what we would actually do locally, once localism was in place. Headlining the localism can sound evasive.

But these are questions about the completeness and presentation of the policy, not objections to it. Anyway I will pick up on a couple of points in Chris's text...

I have considerable doubts about whether there is really such a close parallel
between markets in the private and public sphere: if you buy more or fewer
oranges you are unlikely to affect in any material way anyone else's options.
But if you take your child away from a failing school, you may worsen the
outlook for the children left behind. One person's exercise of choice may limit
anothers.

I have great difficulty with even a slight suggestion that a parent shouldn't take their child away from a failing school. Actually Chris's school example does seem to have a private sphere market analogue: that of positional goods. If you buy Van Gogh's sunflowers, nobody else can. Positional goods have some (intrinsic?) limit on their supply, and a good question might be why do schools appear to be like this. I suggest that the extent to which they are like this is due to the influence of the peer group. There are so many talented and hard working children and so many difficult ones, and we all want our children educated with the former.

Quality peers are a positional good, and this explains much of the heat over private schools, admissions policies, selection, etc. Policies which address funding and governance may be good but largely ignore this issue.


The other aspect of Chris's argument I find unconvincing is the section explaining why more localism would not increase inequality. Now I agree with the conclusion, but I think the argument is cod statistics. Chris shows a graph plotting inequality (the Gini index) against the proportion of taxes raised locally. This shows little or no correlation. Meh.

It is, for example, entirely possible that more equal countries are willing to tolerate greater decentralisation, but that they become less equal as a result. It is possible that there is a correlation here, positive or negative, but hidden by some other variable that is also correlated. It is certain that we are comparing numbers that are not strictly comparable. No, it is nice to have the odd graph, but it is bad statistics to base firm conclusions on it.

But I am nitpicking. Chris has an easy win with the case for localism. He brutally mocks the rewards for failure that went to Margaret Beckett and David Milliband.

It is as if we were implicitly admitting that the system is so big and so
complex that it would be unfair to hold anyone to account for its
failures.

Amen.

The Orange Booker Slur, part 1

From time to time I hear the term Orange Booker used, disparagingly, to suggest that some Liberal Democrats are right-wing, Thatcherite or somehow outside the social liberal tradition. With an Orange Booker standing for the leadership, I thought I would go back to the Orange Book to see if the slur fits.

In Part 1, I deal with Chapter 2: Liberalism and Localism by Edward Davey.

Off the page leaps the following: "... To win the case for Liberal localism, we must, for example, show that social justice will not be harmed, but actually enhanced." And nowhere in the chapter is the opposite sentiment expressed. Perhaps I missed it.

What we do find is an analysis of the centralising tendency of the desire for equal provision of public services. "The progressive centralists fear the re-emergence of significant inequity if Whitehall hands over power to local councils, and they believe the battle to end remaining inequality would effectively be lost. ... Misguided fears of 'two tier' services and of 'postcode lotteries' drives much of this critique."

Do we accept the centralising tendency as the price of social justice? Or is there more social justice in the better outcomes all round that local control will lead to, even if they are not exactly equal from one neighbourhood to the next?

It seems to me that public services, while valuable to everybody, particularly serve to elevate the have-nots. Better services will elevate them more, and will therefore better close the gap between have-nots and haves. A socialist good if any. Perhaps the Orange Bookers are in fact dangerously left-wing? Or perhaps we can agree with the thrust of chapter 2 that better public services is more important than more equal public services.

So, in short, no justification in chapter 2 for the right-wing slur. Coming up next, chapter 3: Europe: A Liberal Future by Nick Clegg.