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Filling the hole: how do the three main UK parties plan to repair the public finances?

The financial crisis and the recession have prompted a huge increase in government borrowing over the last two years, as the gap between what the public sector spends and raises from taxes has widened to an extent not seen since the Second World War. This Briefing Note examines what the parties have said (explicitly and implicitly) about the scale, timing and composition of the fiscal repair job ahead, teasing out the differences and similarities.

Download full version (PDF 2072 KB)<

http://www.ifs.org.uk/publications/4848<

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A new era of people power at the centre of the new Government has been announced today by the Prime Minister and Deputy Prime Minister.

At a round table event in the Cabinet Room in Number 10, a group of civil society community activists and leaders met with the Prime Minister David Cameron, Deputy Prime Minister Nick Clegg, Minister for the Cabinet Office Francis Maude and Minister for Civil Society Nick Hurd to debate the Government's Big Society programme< [PDF 22KB, 3 pages].

A cross-government policy programme will create a climate that empowers local people and communities, building a Big Society that would roll back big government, bureaucracy and Whitehall power.

The policies outlined today include:

  • giving communities a greater say over their local planning system and saving local services, such as post offices and pubs
  • creating a new generation of community organisers that will be trained to support the establishment of neighbourhood groups and introducing measures to encourage giving and philanthropy
  • encouraging volunteering and involvement in social action, including launching a national ‘Big Society Day’ and making regular community involvement a key element of key civil service staff appraisals
  • piloting a new National Citizen Service which aims to give 16 year olds the chance to develop the skills needed to be active and responsible citizens, mix with people from different backgrounds, and start getting involved in their communities
  • supporting mutuals, co-operatives, charities and social enterprises and giving them greater involvement in the running of public services. Funds from dormant bank accounts will be used to establish a Big Society Bank, which will provide new finance for neighbourhood groups, charities, social enterprises and other non-governmental bodies
  • increasing access to government-held data through a ‘new right to data’ for citizens to ensure Government data is published. The Police will be obliged to publish monthly crime statistics
  • extending powers for local government by giving a general power of competence to local councils and conducting a comprehensive review of local government finance in order to help remove restrictions that limit the work of local councils.

Prime Minister, David Cameron, said:

“During the election campaign I extended an invitation to everyone in this country to join the government of Britain. I said that the idea of the Big Society would be marching through the corridors of power – and it's happening right now. Today is the start of a deep and serious reform agenda to take power away from politicians and give it to people.

“That's because we know instinctively that the state is often too inhuman, monolithic and clumsy to tackle our deepest social problems. We know that the best ideas come from the ground up, not the top down. We know that when you give people and communities more power over their lives, more power to come together and work together to make life better – great things happen.”

Deputy Prime Minister, Nick Clegg, said:

“We need radical change that puts power back in the hands of people. Only by bringing down vested interests and giving people real control over their lives will we build a Britain that is fair.”

Minister for the Cabinet Office, Francis Maude, said:

“Today heralds the end of Whitehall bureaucrats micro-managing public services – it's not efficient and it doesn't work. People know what is best for them and their community, and it is Government’s job to make this happen as cost-effectively as possible.”

Nat Wei, one of Teach First's founding team, has been appointed advisor to the Government on Big Society and will be made a member of the House of Lords. He will work alongside the new Minister for Civil Society, Nick Hurd, to lead on the delivery of the programme.

http://www.cabinetoffice.gov.uk/newsroom/news_releases/2010/100518-news-...<

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