Shrinking the state

What would it mean if George Osborne succeeds in cutting public spending to its lowest level since the 1930s?

The scale of the cuts for the rest of this decade implied by the deficit reduction targets in the Autumn Statement takes us into territory uncharted since the war. Many people believe Osborne has moved from the realms of the unlikely to the realms of fantasy and it’s not hard to see why. If the chancellor missed the deficit targets he set out in 2010 by a wide margin, why should we accept what he says in 2014? Especially when he says he can cut taxes at the same time.

Osborne must have hoped that all the headlines would be about stamp duty reform. Instead, news coverage has instead been dominated by the Office for Budget Responsibility’s projections of what further austerity would mean for the public sector. This graph on government consumption as a proportion of GDP sums it up:

1930s

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England, Brazil and me

The four-yearly cycle of hope and disappointment is complete. England’s early departure from yet another World Cup got me thinking about how much things have changed since the first one I can remember.

Everyone who loves football has one World Cup that seems frozen in time. For me it’s 1970. I was six years old when England won in 1966, old enough to realise that something important was happening but not quite old enough to realise what it was. West Germany 1974 and Argentina 1978 were memorable but by then I was a bit more cynical and England failed to qualify for both of them. To the ten-year-old me, though, Mexico 1970 was a thing of wonder, an almost impossibly exotic version of the game I played with my friends in the school playground.

Some of this is to do with age. As with David Hemery and Mary Peters winning gold at the Mexico Olympics in 1968 or Neil Armstrong landing on the Moon in 1969, it happened when I was old enough to appreciate what was happening but young enough to be seeing it for the first time. Add weeks collecting stickers for my Soccer Stars Album and I was hooked:

SS cover

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Rachman, rogues and renting

Scandals hit private renting. With an election in the offing, the Labour opposition pledges help for tenants. There are definite parallels between now and the 1960s.

Everyone (especially those who oppose the party’s current modest reform plans) thinks they knows what happened in the wake of Rachmanism but the truth is far more complicated and so are the lessons for the future.

My interest in the period was first caught by a 2012 Radio 4 documentary called The Real Rachman – the Lord of the Slums. I thought I knew about Rachmanism but the programme told a much more nuanced and mysterious story that I blogged about shortly afterwards.

That blog prompted an email from Professor David Nelken, whose 1983 book on the aftermath of Rachmanism has just been reissued. The Limits of the Legal Process is a classic study of the sociology of the law that should be required reading for anyone involved in the current debates about regulating renting (or indeed regulating anything). The book is subtitled ‘a study of landlords, law and crime’ and it tells the story of the response to Rachmanism, first by the politicians with legislation, then by landlords with evasion and then by local authorities and the courts with implementation and enforcement.

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Giving hope

Housing and philanthropy seemed to go together naturally in the 19th century. Can they do it again in the 21st?

An interesting report out today from the Smith Institute, New Philanthropy Institute and Peabody Trust sets out to answer that question and in the process asks some more of its own about what the relationship should be between the state, housing providers and the private sector.

Peabody is of course one of the prime examples of Victorian philanthropy. American banker George Peabody donated a total of £500,000 (the equivalent of £40 million now) to ‘ameliorate the condition of the poor and needy’ in London. Thanks to careful management of its money, requiring a return of 3 per cent on its capital, it developed into an organisation with 20,000 properties housing 55,000 people.

Yet, as I blogged in celebration of Peabody’s 150th anniversary last year, that begs the question of why there are no equivalents today. Inequality is back to levels last seen in the 1920s and the super-rich grow ever more super and richer. So why is there no contemporary equivalent of Peabody or William Sutton or Octavia Hill? Why is there no Richard Branson Trust or Fred Goodwin Model Dwellings Society? The last major housing development funded by a philanthropist was Silver Edge, a model village in Essex founded by window magnate Francis Crittall – and that was in 1925.

Read the rest of this post on Inside Edge, my blog for Inside Housing


Whose benefit?

You know the formula by now: take a provocative premise, add three claimants selected to provoke different reactions, stir in the reaction on twitter, then stand back and watch the viewing figures mount up.

As with How to Get a Council House, Benefits Britain 1949 suffers from all the faults that are seemingly hard-wired into Channel 4 reality shows. The opening episodes showed them both at their worst (see me on HTGACH and Frances Ryan on BB49) but with time they evolved into something that went beyond the format and the premise.

I’ve just caught up with the second episode of Benefits Britain 1949 and if you haven’t seen it I recommend a viewing in conjunction with the third and final episode of How to Get a Council House because they neatly bookend the whole debate about social housing and its place in the welfare state.

Read the rest of this post on Inside Edge, my blog for Inside Housing


The welfare state reaches retirement age

This Friday marks the 65th anniversary of one of the greatest moments in British history. With some justification, it has been called ‘our second Finest Hour’.

But as the welfare state and the National Health Service reach retirement age are both of them being pensioned off by a government intent on austerity and endless rounds of welfare and public sector ‘reform’?

Monday, July 5, 1948 was known as The Appointed Day. It marked not just the start of the NHS but also full implementation of the Beveridge plan for social security. A comprehensive system of national insurance now complemented earlier measures including family allowances and industrial injuries compensation.

NHS-Launch-Leaflet

The NHS launch leaflet, July 1948

Personal testimonies of the time range from the touching to the gruesome and the comical to the romantic. One young GP remembered going to see a family where he’d left medicine for a sick child. As he was leaving he heard coughing and asked the mother if she wanted him to go up. ‘I’m sorry, doctor, we can’t afford it,’ she said, explaining that it was another child who was ill. ‘Today, July 5th, it’ll cost you nothing, I was able to tell her,’ he said. ‘And I’ve never forgotten it.’

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Never knowingly undernudged

So-called ‘John Lewis-style mutuals’ are (depending on your point of view) the future of the public sector or a euphemism for privatisation. However, the expression may have some unexpected implications for the government.

Cabinet Office minister Francis Maude launched a competition today to find a commercial partner for the government’s Behavioural Insights Team – or Nudge Unit. He described the move as ‘employee-led’ as the 12 Nudge staff have led the process and will continue to run the organisation. Reports suggest that private companies will be invited to bid for a stake of up to 50 per cent in the new business in return for the government guaranteeing long-term contracts. The staff and the government would also own stakes.

nudge

The Nudge Unit is claimed to have already saved the government millions of pounds although it not quite clear how. It hit the headlines for different reasons today when it was revealed to be behind bogus psychometric tests for jobseekers. It is best known to me as the unit that the DCLG failed to consult when it introduced the New Homes Bonus in a bid to change the behaviour of local authorities and I wonder what, if anything, it had to say about the behavioural impacts of welfare reform that the DWP found impossible to quantity.

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