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ippr north’s Commission on Public Service Reform in the North East finds a public service paradox

29 October 2009

A new report by the Commission on Public Service Reform in the North East shows that the public sector in the region is performing well and hitting the targets set for it by central government.  However, it is not having any great impact on the region’s relative poverty as compared with other parts of the country.

ippr north’s report Public Service Paradox: The final report of the Commission on Public Sector Reform in the North East argues that top down targets for public services have not narrowed the outcomes gap as economic inequality is so deep rooted. 

Across a number of indicators – including life expectancy, entrance to further education, and unemployment - the North East still lags behind other regions.  The Commission concluded that high performing public services have helped to protect the region from greater hardship during the recession, but have not had a significant impact on the economic fundamentals. 

The commission argues that the public sector in the North East should have greater freedom to control its own affairs in three key areas:

• The setting of long term goals
• Decisions about public finances
• Working with the third sector and private businesses.

Ippr North Director, Ed Cox, said:

“Given the amount of investment in public services in the North East, the fact that the region still lags behind other parts of the UK might suggest the money has been badly spent.  In fact, the Commission found that the public sector was performing very well against the targets set for it. But this is part of the problem.

“These targets, set by central government, do not give the North East the freedom it needs to tackle the deep rooted economic issues which the region faces.  There is a challenge for the North East in getting to grips with these fundamental problems, but in order to meet that challenge the region needs more control over its own destiny.”

Sir George Russell CBE, Chair of ippr north’s Commission on Public Sector reform and, Deputy Chair of ITV plc said:

“There are two big challenges to be overcome – and the public sector has a big role to play in them both – if the North East is to thrive. The first is to make the economy stronger and the second is to deal with the concept of who is in charge and accountable.

“In today’s report we argue why these are crucial issues and do not provide answers on how to tackle them, but call on the region itself to prioritise the formulation of ideas for how to do so, however difficult a challenge it seems. That is key to unlocking the potential this region undoubtedly possesses.”

Notes to Editors

ippr established the Commission on Public Service Reform in the North East, based at ippr north in Newcastle, in 2007. The Commission came together to look at the policy challenges emerging from the reform and renewal of public services since 1997, particularly in relation to the distinctive needs of the North East region.

The Commission is independent body and is chaired by Sir George Russell CBE, Deputy Chair of ITV. Its members comprise of experts from all areas of involvement in the public services. The commission members comprise of:

• David Albury, Independent organisational and policy consultant, and former Principal Adviser, Prime Minister’s Strategy Unit
• Joe Docherty, Chief Executive, Tees Valley Regeneration and ippr north advisory board member
• Fiona Ellis, Director, Northern Rock Foundation
• Margaret Fay OBE, Chairman, ONE NorthEast
• Roger Kelly, Chief Executive, Gateshead Council
• Sean Price, Chief Constable, Cleveland Police
• Baroness Joyce Quin, former regional MP and MEP
• James Ramsbotham, Chief Executive, North East Chamber of Commerce
• Marcus Robinson, Partner, PricewaterhouseCoopers and ippr north advisory board member
• Julia Unwin, Director, Joseph Rowntree Foundation
• Professor Gerald Wistow, Chair, School of Applied Social Sciences, University of Durham

All Commissioners are serving in a personal capacity and bring individual expertise. They do not represent the interests of any organisation.

Previous publications from the commission include:

Prospects for More Local, More Personalised Public Services: A North East perspective published January 2009
This discussion paper sets out of some of the key questions that ippr north’s Commission on Public Sector Reform in the North East will be considering over the coming months, and the analysis that forms the backdrop to these questions.

An audit of public sector reform in the North East published September 2007
This paper considers four key areas of the public sector – criminal justice, education, health and welfare-to-work – and the changes that have taken place within them over the last decade, from 1997 to March 2007.

Contacts
 
Kelly O’Sullivan, Media Officer, 020 7470 6125 / 0775 719 289 / k.osullivan@ippr.org 
 
Tim Finch, Director of Strategic Communications, 020 7470 6106 / 07595 920 899 / t.finch@ippr.org

 

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