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Link to an external websiteCatalyst is a "campaigning think tank" set up 1998 to develop and promote "practical policies for the redistribution of wealth, power and opportunity." Roy Hattersley is chair of its national council. Recent documents include Reconciling Equity and Choice? Foundation Hospitals the future of the NHS and An American Tale: Modernising public services, containing privitisation.

Link to another page on this siteNews story: foundation critics face up to Milburn.

Link to another page on this siteNews story: The language and philosophy of consumerism has too much influence on New Labour’s attitudes to ‘modernising’ public services, warn two influential think tanks.

Link to another page on this sitePositively Public is UNISON’s campaign to keep our public services public.

The government's modernisation agenda for public services is worrying many, as Demetrios Matheou reports

Citizen or consumer?

Reform of public services could define the battleground for the next general election.

Backbench Labour MPs have said the government is being too “timid” in its reforms, yet urge ministers to resist privatisations or charging for services, if they wanted to gain much-needed support from trade unions and leftwing MPs.

They have a point. From its battles with Ken Livingstone over the control of London’s underground system, to its determination to introduce foundation hospitals into the NHS, a market philosophy now imbues Whitehall’s approach to the public sector.

And it is a stance which is leaving the British public – not least those who voted for New Labour - scratching its collective head.

A number of recent reports have noted the extent to which the language of consumerism is influencing Labour’s approach to “modernising” public services.

In a throwback to the Thatcher years, factors such as individual choice and competition are very much to the fore.

At the same time, New Labour is going much further than the Tories in the use of advertising techniques – in particular ‘re-branding’ – to put across its market philosophy.
Foundation hospitals are a case in point: a new name for a new kind of hospital, but one which critics fear is a rhetorical Trojan horse by which the private sector will invade the NHS.

UNISON, which is campaigning vociferously against the foundation scheme, is well aware of the wider malaise inherent in Labour’s new approach.

"This growing commercialism erodes the public service ethos,” says UNISON policy officer Sampson Low. "We are concerned market mechanisms are being introduced into public services, which undermine fair and universal provision.

“Private companies,” he adds, “with no track record in public services, but which are good at winning bids, seem to be prospering in this new environment.”

One of the most compelling of the new reports comes from the influential left think tank Catalyst.

Written by Catherine Needham of Nuffield College, Oxford, Citizen-consumers argues not only that market-style policies have limited validity in the public sector, but that attempts to win over the public by emulating the attractions of the private sector may well have the adverse effect of eroding public identification with tax-funded services such as health and education.

The Catalyst pamphlet argues that New Labour has intensified a trend begun under the Conservatives, whereby voters and public services users are treated as if they are private consumers, to whom government policies and services must be marketed and sold - as if government itself were a private corporation.

In a wide-ranging analysis of the government-citizen relationship under New Labour, the report finds that:

  • government communications are increasingly promotional, as seen in Alastair Campbell's reforms to the Government Information Service, energies devoted to departmental "branding", and controversies over "spin", distortion and misrepresentation in government-provided information
  • government consultations now "mimic commercial market research" in their reliance on "opinion polls, feedback forms and satisfaction surveys". They also ask respondents “to report their experiences as service users and not to consider wider community, policy or budgetary implications"
  • the government's agenda for public service reform is explicitly focused on the maximisation of "customer satisfaction" and prioritises the expansion of individual choice and complaint over more democratic ways of engaging users and making services more responsive

Based on extensive research including interviews with civil servants and local government officers, as well as analysis of key policies and public statements, Needham confirms that the culture of consumerism and customer-relations has penetrated deep into Britain's public institutions.

She quotes a Department for Education and Skills official saying "we see our work as being driven by our customers who are young people"; and a city council head of communications declaring "We have to move to a position where the corporate communications department is thinking 'customer'."

Needham argues that New Labour’s philosophy represents a “fudge on the relationship between the state and the market, which calls for a synthesis of the best of both, without critically engaging with their fundamental contradictions .”

Ultimately, she argues, attempts to appeal to citizens as consumers will be self-defeating – damaging the sense of shared values and collective goals upon which the democratically approved, tax-funded public services are founded.

"Consumerism is a model that prioritises the individual over the community, encourages passivity, downgrades public spaces, weakens accountability and privatises citizenship,” she says.

“It may also be a problem for government. If the nature of consumer demand is that it is limitless, the result may be a citizenry that expects public services to match their private sector equivalents, without recognising the constraints that limit public provision.”

The report suggests that there is an emerging debate among Labour policymakers and intellectuals, who question this over-emphasis on consumerism.

For now, however, Needham concludes that: "Rather than delivering a satisfied and pliable citizenry, consumerism may be fostering privatised and resentful citizen-consumers, whose expectations of government can never be met.”

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WHO SAID WHAT

“In all walks of life people act as consumers, not just citizens. They want those providing a service to justify themselves.”
Tony Blair, in his forward to New Labour’s first annual report in 1998.

“In public services, customer satisfaction has to become a culture, a way of life, not an ‘added extra’.”
Tony Blair, Fabian Society pamphlet, September 2002

“Not only is the consumer not sovereign, but a free market in health care will not produce the most efficient price for its services or a fair deal for its consumers.”
Gordon Brown, A Modern Agenda for Prosperity and Social Reform, 2003

“We’re more interested in community values than consumerist values. Our attitude to the future of the health service is not about how much competition, how much out-sourcing, how much consumer choice.”
Rhodri Morgan, First Minister of the Welsh Assembly, on student fees, February 2003

 

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