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blue horizons

18 January 2010

Liane HartleyAfter 12 years in opposition, three elections lost, and no fewer than four different leaders, the Conservatives appear to be leading the race to win the next election. Liane Hartley looks at what we might be able to expect from a Conservative government...

Economy

Labour may have tried to steal Conservative thunder by announcing a pay freeze for the public sector, but the Conservatives are pushing for very stringent cuts in Whitehall - a third over five years, with most of the hit being taken by quangos (Regional Development Agencies are a particular focus of Tory ire).

The message here seems to be that any quango is a quango too far. Other measures include no tax credits for families with incomes over £50,000, no abolition of the 50p rate and proposals to raise the retirement age. Anyone looking forward to seeing inheritance tax cuts featuring in the first budget will also be disappointed.

Health

The Department of Health would be abolished in its current form. Hospitals and GPs’ surgeries would be run locally, and a new much smaller Department of Public Health will be set up in Whitehall
concentrating on changing lifestyles – the health police will continue unabated.

Education

Conservatives have unveiled plans for a new technical school to be built in each of the 12 biggest cities in England, encouraging students to take vocational qualifications. The technical schools would teach 14-19 year-olds who want to gain employment rather than go to university.

Development & Regeneration

London Mayor, Boris Johnson, has given the clearest indication yet that the Conservatives would support Crossrail, emphasising the importance of London as the UK’s economic powerhouse. This is an indication of a move away from Labour’s policy of balancing regional disparities and return to overheating south-eastern economies.

Housing

The Conservative Party would create a ‘Nation of Homebuilders’ with villages granted powers to expand by up to 10% over ten years. Local Housing Trusts would enable rural areas to use local democracy to build the homes they need for local families and to support local services. Changes to the planning system (again) beckon.

Public Sector Reform

The Shadow Business Secretary has called for a ‘sunset clause’ to be applied to all regulatory quangos, forcing them to either justify their existence or face being abolished. The public will be able to nominate unpopular regulations which will then be placed under review for potential abolition. This would not apparently lower standards but instead reduce mountains of forms - a sure-fire vote winner.

One of the strongest messages across the board from the Tories is one of ‘Localism’. On a cynical note the localism agenda - ‘Local decisions at the local level’ - could in fact be more about placing the burden of responsibility of identifying and making spending cuts on the shoulders of local government - a tactic
used by the Tories in the 1980s.

Others are more positive, suggesting that Cameron does have a genuinely radical programme for government based on handing power from Whitehall to ordinary people. To compensate for dwindling resources and executive capacity, Local Authorities will be given greater powers to influence local issues and enter into greater partnership working with the private sector. This could see a new breed of Public Private Partnerships – food for thought for Capita Symonds.

Liane Hartley (liane.hartley@capita.co.uk) is a Principal Socio-Economist at Capita Symonds.

www.capitasymonds.co.uk/socioeconomics

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