‘Efficiency must stop meaning cuts – we need a post-austerity vision for public services’

Our public services are under immense pressure. From Whitehall departments to councils to NHS trusts, all are expected to do more year after year, often against the backdrop of tight budgets, whilst the public continue to demand top-tier services. 

The conversation about making the services that form the bedrock of our economy more ‘efficient’ can often be difficult, especially for those of us on the Labour benches. Stock phrases force fed to the public throughout fourteen years of Conservative rule has resulted in efficiency being little more than a byword for cuts and austerity, leading to ever-shrinking services with the public having to settle for less and frontline staff expected to do the impossible. 

Tough times call for a bold approach. We must throw out the tired, failed Tory version of efficiency and embrace a post-austerity Labour vision for efficient public services. If done right, this will be the antidote to the age of stagnation. 

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For Labour, efficiency should be about making sure every pound of public money maximises the impact on the lives of the people we now have the privilege of serving. People in proud communities like the ones I represent in Cannock Chase who trusted the Conservatives at four successive general elections but were amongst the most badly let down. Efficiency should mean not only improved outcomes, but a return to the core purpose of our public services, and the five missions we set ourselves as a programme for government.

When funding for the public sector is constrained, as it is in nearly all developed countries, the answer cannot simply be to retreat. As populists on the left and right pump out simple answers to complex questions, we owe both those using public services and those working in them a relentless effort to ensure they are as effective as they can be.

A belief in the value – economic and social – of strong public services is a core Labour value that unites our broad church.  Our Party has shown time and time again that the state works when governments step up. But the achievements of past Labour governments hinged on modernising public services so they are fair for all and meet the challenges of the day. This makes the case for efficiency not a theocratic exercise, but a moral cause. 

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That is why I am proud to chair the newly launched All-Party Parliamentary Group for Public Sector Efficiency. We have launched this APPG precisely because past approaches to efficiency have been too narrow and focused on cost cutting. The result of this? Short-term fixes that undermine long-term capability.

This APPG will do things differently. Our focus is not on chasing arbitrary savings targets, but on understanding how better ways of working can strengthen public services and mean better results for the people who rely on them. That requires us to look seriously at how departments collaborate, how public bodies commission and deliver services, and how barriers between organisations can be broken down. We have already launched a commission that will look at examples of efficiency from overseas and there is more to come very soon in the vital fields of health and education.

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Too often, public sector reform is discussed in abstract terms, far removed from the day-to-day challenges faced by those at the coalface who are often the first to identify where money could be spent better. One of the strengths of this APPG is that it brings together parliamentarians with practitioners and experts who understand what it takes to turn good ideas into real-world change. That practical, real-world approach will sit at the heart of our work.

Working collaboratively is also at the heart of our strategy. Whether it is between departments, across different tiers of government, or with partners in industry, better outcomes are rarely achieved alone. By working across party lines and by sharing what works, we hope to help policymakers see efficiency not as a threat to public services, but as a tool for making them more resilient and, ultimately, deliver on Labour’s pledges to the public.

The role of the APPG’s secretariat Efficio will be central to this ambition. By bringing resource and expertise in commercial transformation and delivery, the secretariat will help ensure our work is grounded in evidence and what works in reality. This is not about producing reports that gather dust, but about challenging the way it’s always been done to inform policy and practice alike.

Whilst some in the opposition are calling for us to once again reach for the tired old playbook of austerity to find savings, we will not repeat the mistakes of the past. Labour should confidently make the case that public services can be both efficient and expansive.

If we are serious about renewing the state and restoring trust in public services, we cannot afford to let efficiency remain a byword for cuts. This APPG exists to help change that narrative, and I look forward to working with colleagues across Parliament and beyond to show how efficiency, done right, can renew the public services our country depends on.

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