CNJ COMMENT - A more centralised localism? It just doesn’t stack up

Published: 14 October, 2010

ARE the Labour-controlled councils of Camden and Islington now being lured  down the same path that has beckoned David Cameron, Nick Clegg and Vince Cable?

Both councils have a statutory responsibility to prudently manage their finances.

Driven by the need to economise, both councils have warmed to the idea that by amalgamating services governing, for instance, school meals and refuse collection, millions of pounds can be saved annually.

Though these services will not be combined until next year, at the earliest, Town Hall accountants would have naturally plotted their projec­tions accordingly – and no doubt brought smiles to the leadership of both councils.

With this form of centralisation comes bulk buying of services. A company providing school meals for one borough will clearly proffer a lower price if the tender encompasses both boroughs.

Not quite two for the price of one but something near to that.

The same logic applies to refuse collection.

Aware of this, even those councillors with little business acumen, immediately saw the advantage of this kind of bulk buying. Here they are in tune with the views of the businessman Sir Philip Green – immensely admired by the Coalition – who said the government could immediately save £20billion by bulk buying and centralised purchasing of goods.

While this would attract George Osborne, always anxious to trim the deficit, it does, paradoxically, rub up against David Cameron’s idea of the Big Society.

Though there is a certain amount of confusion as to what is meant by the Big Society it plays up the idea that more municipal services should be run by voluntary bodies, and that “localism” in every respect should be given its head – the very opposite of centralised top-down decision making and, may we suggest, the very opposite of the centralised control of services.

Here lies a paradox for the Coalition.

It blames Labour for the deficit. 

Neither the City nor the banks are put into the frame.

Too much top-down power, spawned by a pumped-up public sector, all encouraged by Labour, is the culprit.

Cut back the role of government, cut back its inevitable financial waste, give power back to ordinary people – and, hey presto, a more balanced economy will emerge.

But where does all this fit in with Philip Green’s advice? Isn’t centralised management and planning – at local or national government level – required before bulk buying is embarked upon?