Verdant, a new think tank of the left, is set to end the myth that efficiency savings are only a right-wing issue. In its first report, the think tank, headed by a former adviser to Labour shadow chancellor John McDonnell and a civil society campaigner, found at least £30.9bn in potential savings.
The myth of the right
It’s not actually true that the right are good with efficiency savings. The corporate-aligned right view public spending as a cash cow to be milked at every corner. From infrastructure projects to public services, the right enrich corporations as much as possible through outsourcing to people who do not believe in pubic spending at all, let alone for public good. In the NHS, private provision of services has been increasing by up to 71% in some areas.
Verdant’s report outlines efficiency savings via bringing corporate management for government in-house. They argue it should be part of the civil service. The thinktank found that the government’s consultancy spending has risen by 57% since 2019.
Rather than the right-wing Labour and Conservative governments simply demanding 5% in ‘efficiency savings’ (austerity), Verdant suggests a Chief Savings Officer to find savings ahead of spending reviews. The role would focus on public excellence rather than cuts for the sake of it.
The think tank estimates that ending such outsourcing failures could save £9bn per year.
Think tank — left-wing efficiency
Verdant further pointed out that action on corporate tax avoidance could save £11bn per year. The thinktank also spoke about making tax returns for businesses less complicated. Indeed, the government should provide an automated service that calculates tax returns for free.
Another saving the thinktank found is in defence procurement. Of total MOD spending, BAE systems takes 16% while only half of those contracts are offered competitively.
Verdant also noted that The Warrior programme delivered zero vehicles after the government spent £500 million. This is an example of endless outsourced projects that get cancelled after money is made.
The Labour government has continued the Conservative agenda of subsidising fossil fuel production, a cost now at £3.6bn per year. As the thinkntank pointed out, that’s despite ridicuclous profits.
Verdant’s co-chair James Meadway said:
The political right have monopolised the discussion about savings in government spending, to disastrous effect. Breaking the false economies of Treasury thinking and vested Whitehall interests are an essential. A ‘Doge of the left’ would rinse out the tax avoiders, the profiteers and the fraudsters, and help deliver the high quality public services we deserve.
Overall, Verdant found that the government could save £30.9bn per year through taking small steps.
Featured image via the Canary
By James Wright
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