Showing posts with label labour. Show all posts
Showing posts with label labour. Show all posts

1/14/09

Grimsdale's Ire: 14/01/09

MSPs give initial backing to SNP budget plans
"The Scottish National party's latest budget plans today cleared their first hurdle at Holyrood with minimal resistance after Labour MSPs unexpectedly supported the outline bill.

The Liberal Democrats were the only party to oppose the Scottish government's £33bn spending plans when MSPs voted on stage one of the three-step budget process, which accepts the principle of the budget." [Guardian]

Social mobility drive focuses on schools
"Nearly 175,000 bright children on free school meals will be given a chance at the age of 11 to visit a university as part of a drive to lift the aspirations of working-class people and increase stalled social mobility in Britain.

Young people in the top 20% of ability based on test results, and who are eligible for free school meals, are about half as likely to go to university as those who are not eligible for free meals. They will now be offered two chances to visit universities." [Guardian]

Third runway rebels hear from the Labour whips
"Government whips have embarked on a "ring round" to put pressure on rebel Labour MPs not to join forces with the Tories in a Commons vote opposing a third runway at Heathrow airport. As the cabinet discussed the expansion of Heathrow at its weekly meeting yesterday, the rebel MPs said they were prepared to ignore a government three-line whip and vote with the Conservatives.

David Cameron is expected to devote one of the Tories' opposition day debates in the Commons to government plans to allow a third runway to be built at the west London airport. Votes are held after such debates, giving the Tories a chance to embarrass the government by enticing Labour rebels to their side. The vote would have no force in law." [Guardian]

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1/12/09

Heron's Eye: 12/01/08

Ex-minister joins private equity firm that received £15m from Whitehall agency
"Lady Amos, who was international development secretary and leader of the Lords in Tony Blair's government, has taken up a directorship with an African private equity firm, three months after it received over £15m from a Whitehall agency wholly owned by her former department.

The timing of Amos's appointment was described as "a coincidence" by the Commonwealth Development Corporation (CDC), which approved the cash – amounting to nearly 30% of the funds raised by Travant Capital Partners, based in Nigeria." [Guardian]

Labour's new blog courts best leftwing thinkers on the web
"LabourList.org was controversial even before it was born, with established Labour bloggers complaining at being left out, and Tory bloggers warning that it would be so heavily censored as to be little more than party propoganda." [Guardian]

Peter Mandelson ushers in a virtual New Labour revolution
"The unveiling of Peter Mandelson's avatar in Second Life is part of Labour's push to beat the Conservatives in the political use of new technology, but it also has a symbolic significance. Unlike the rest of Second Life, where people drop a decade or two from their looks or masquerade as animals, Peter Mandelson will actually look like Peter Mandelson. What you see is what you get....

"How independent the blog will be remains to be seen – it has already recruited Brown's former spinster Charlie Whelan – but there is no doubt that there is a gap to be filled in generating unconventional ideas for Labour at a time when almost every policy area is in a state of flux – particularly what on earth can be done to stop the economy from imploding." [Guardian]

Gordon Brown hits back at Tory debt accusations
"Gordon Brown today accused the Conservatives of neglecting the interests of children as he and David Cameron clashed over which party has the best economic policies for Britain.

The Tory leader unveiled a new poster campaign accusing Brown of saddling every new-born baby with a debt of £17,000 because of the mounting level of public sector borrowing." [Guardian]

New babies born with £17,000 debt, claims David Cameron
"Rapidly rising government debt means every baby born in Britain starts life owing £17,000, David Cameron claimed as he launched a new publicity campaign today.

The Tory leader made the claim as his party unveiled a new poster designed to highlight what it calls Labour's "debt crisis".

The poster, which will be displayed at 260 billboard sites across the country, features a photograph of a baby and the slogan: "Dad's nose, mum's eyes, Gordon Brown's debt – Labour debt crisis: every child in Britain is born owing £17,000. They deserve better." [Guardian]

Letter: Filleted statistics
Your leader (8 January) and Marcel Berlins's plea to politicians (Let's stop fighting over the figures in 2009, 5 January) highlight the extent to which criminal justice has become a party political football. In such a fevered climate it can often seem as though statistics have been filleted to expose evidence that a political opponent has gone "soft on crime" rather than to understand what might be effective and in what circumstances. Sadly, the end product of much good work by researchers is to feed the fear of crime and pleas for ever tougher punishments. How else can we explain the lack of attention given to the excellent research into restorative justice, which shows that victims of crime who have such meetings with offenders are far more likely to be satisfied with the process than those who experience the traditional court process? Less than 1% of victims of adult offenders have access to restorative justice." [Guardian]

Gaza crisis is having 'profoundly unhealthy' effect on UK Muslims, minister warns
"The Israeli onslaught in Gaza is having a "profoundly acute and unhealthy" effect on British Muslim communities and "patience is running out", a government minister has said.

The justice minister, Shahid Malik, told the Guardian there was "immense anger" in British Muslim communities over developments in the Middle East. He said: "There is a real feeling of helplessness, hopelessness and powerlessness among Britain's Muslims in the context of Gaza and the sense of grievance and injustice is both profoundly acute and obviously profoundly unhealthy."" [Guardian]

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10/31/08

Heron's Eye: 31/10/08

Mr Darling, the master of contortion 31/10/08
Steve Richards highlights the lack of economic philosophy within New Labour, examining why this is the case and its effects on parliamentary strategy. [Independent]

Smith orders inquiry into MI5 and CIA torture claims 31/10/08
“Jacqui Smith, the home secretary, has asked the attorney general to investigate possible "criminal wrongdoing" by the MI5 and the CIA over its treatment of a British resident held in Guantánamo Bay, it was revealed tonight.

The dramatic development over allegations of collusion in torture and inhuman treatment follows a high court judgment which found that an MI5 officer participated in the unlawful interrogation of Binyam Mohamed. The MI5 officer interrogated Mohamed while he was being held in Pakistan in 2002.” [Guardian]

Straw asked to pardon executed witches 31/10/08
“A petition calling for the posthumous pardon of women and men who were executed as witches in Britain will be presented to the justice secretary, Jack Straw, today.

Campaigners hope evidence of eight grave "miscarriages of justice" will persuade him to take action.” [Guardian]

BBC battles to calm prank storm 31/10/08
"The BBC attempted last night to draw the poison from another calamitous week by taking the unprecedented step of banning its highest paid star for three months, and accepting the resignation of one of its most senior and best-loved executives." [Guardian]

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10/20/08

Heron's Eye: 20/10/08

Labour fails to win poll boost from banking crisis 20/10/08
Gordon Brown is winning praise but not votes for his handling of the financial crisis, according to a Guardian/ICM poll published today. It shows the Conservatives maintaining a double-digit lead, enough for a Commons majority, despite the transformation of the prime minister's reputation at Westminster. [Guardian]


Gordon Brown defends level of national debt 20/10/08
Gordon Brown today defended the level of Britain's national debt – claiming it is "considerably lower" than a decade ago. The prime minister told MPs that it was because the government had repaid so much of its debt in previous years that it was able to borrow more now. [Guardian]


Financial crisis leaves David Cameron with few options 20/10/08
Last week, in an article about what David Cameron and his circle were thinking about the political consequences of the global financial crisis, ConservativeHome reported: "The Tories are not worried about being largely out of the news." [Guardian]


David Cameron is back - but he's storing up trouble for himself with this speech 20/10/08
“Is David Cameron at liberty to attack Gordon Brown's economic record as chancellor and prime minister? Of course he is. That's what we pay an opposition for: to oppose. He also produced a joke I hadn't heard.

Yet to hear some of this morning's talk about breaking the "political truce" during a financial crisis, you'd think he'd done something terrible like push the Brown kids off their tricycles and grazed their tiny knees.” [Guardian]


Salmond blames 'sub-prime minister' for banking disaster 20/10/08
Alex Salmond yesterday blamed Gordon Brown for the economic "calamity" that has forced the government to find £200bn to bail out the UK's banking sector.

The Scottish National party leader accused Brown of "presiding over the biggest economic reverse for a generation", deriding him as the "sub-prime minister". [Guardian]


'Insolvency arc' may influence Scottish poll 20/10/08
Michael White on the effects of the current financial crisis on the SNP’s political fortunes. [Guardian]


Darling invokes Keynes as he eases spending rules to fight recession 20/10/08
The Treasury confirmed yesterday it intends to fast-track spending planned for future years as Alistair Darling signalled that he will use next month's pre-budget report to relax Labour's long-standing fiscal rules to head off the worst effects of the recession.

Over the weekend the chancellor indicated that the government would seek to reflate the economy with a period of targeted spending on large infrastructure projects. Darling said yesterday that the economic thinking of legendary economist John Maynard Keynes was coming back into vogue. [Guardian]


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8/14/08

Heron's Eye: 14/08/08

MP's death leaves Brown facing new SNP challenge in neighbouring Fife constituency
Gordon Brown faces a difficult byelection in his neighbouring Fife constituency after the death of Labour MP John MacDougall from cancer.

Downing Street is likely to wait until after Labour's conference next month before facing the Scottish National party in Glenrothes. MacDougall, 60, held the seat with a majority of 10,664 at the 2005 general election. But the SNP in effect won the seat in last year's Scottish parliamentary elections with a majority of 1,166 - although the Holyrood constituency, Central Fife, has a slightly different boundary. [Guardian]

Jack McConnell: Should he stay or should he go?
Severin Carrell on the issues facing the Labour party and byelections at the moment. [Guardian]

Labour is in a deep hole, former minister admits
Gordon Brown is in a "deep hole", placing Labour in a more serious position than other governments that have experienced mid-term blues, a former minister said yesterday. [Guardian]

Unions and MPs back 'dream ticket'
A powerful coalition of mainstream Labour MPs and leaders of Britain's biggest unions is backing a right-left 'dream ticket' of Alan Johnson and Jon Cruddas to lead the party into the next general election, having given up on Gordon Brown's premiership. [Guardian]

Gethsemane: David Hare's satire crucifies New Labour
David Hare anatomised the failure of privatisation in The Permanent Way; in Stuff Happens, he turned a ruthless eye on the double-think and culpable naivety that led to the Iraq war. And in his new play, Hare dramatises his final and bitter disenchantment with New Labour, the Guardian can reveal. [Guardian]

Tories' favourite thinktank brands northern cities failures
A Tory push to win back seats in the north of England suffers a blow today with the party's favourite thinktank declaring that key cities, such as Liverpool and Sunderland, have "failed" and people should be paid to move south. [Guardian]

Cameron rubbishes 'barmy' report on failing north
"

It was dreary and wet, and slumped in a chair opposite David Cameron was a jobless hoodie: much of the north in a nutshell according to Policy Exchange, until yesterday the Tory leader's favourite thinktank.

Not any more. Cameron took less than a minute after arriving in Carlisle - as far north as you can get on England's western side - to pan the group's dismissal of the region. It wasn't cities such as Sunderland, Bradford or the European Capital of Culture, Liverpool, which were hopeless, he said, after joining a confidence-building class for local teenagers. It was the thinking at Policy Exchange." [Guardian]

In praise of the north
"A rightwing thinktank has written off many northern cities as worthless failures and advised their inhabitants to move south at once. In fact, everything about life in the north of England - from the people and the food, to the politics and the fashion - is the best in Britain. Here, 10 writers explain why."[Guardian]

Geographic folly
Steve Bell on Policy Exchange’s report on the north of England. [Guardian]

Bling culture turns youths to crime, says minister
Young men are shunning work and turning to a life of crime as Britain develops a "get rich or die trying" culture, the country's most senior black MP warns today. David Lammy, the skills minister, says young men are encouraged by a "bling culture" to pursue crime as a short cut to wealth in the face of a rapidly changing economy which no longer places a premium on manual jobs. [Guardian]

Brown ally joins call for windfall tax on energy companies
One of Gordon Brown's closest allies has joined calls for a windfall tax on oil and energy company profits to pay for measures to alleviate the impact of higher fuel bills on the poor. [Guardian]

Companies face crackdown on electricity greenwash
Dozens of companies face having to report embarrassing sharp increases in their carbon pollution under government plans to crack down on greenwash. [Guardian]

Ex-drugs policy director calls for legalisation
A former senior civil servant who was responsible for coordinating the government's anti-drugs policy now believes that legalisation would be less harmful than the current strategy. Julian Critchley, the former director of the Cabinet Office's anti-drugs unit, also said that his views were shared by the "overwhelming majority" of professionals in the field, including police officers, health workers and members of the government. [Guardian]

The media's addiction to controversy can seriously damage your health
Peter Wilby on the dangerous effects of journalists’ desire for a news story overpowering rational examination in scientific matters. [Guardian]

From courageous to stubborn
Martin Kettle prods around Gordon Brown’s brain in order to highlight how Brown’s impression of what is courageous becomes something else when he is unable to change direction on issues. [Guardian]

Tories pledge to grant police greater surveillance powers
Police would be given greater powers to conduct surveillance operations on people suspected of crimes such as burglary and vehicle theft under plans the Conservative Party will announce today. [Guardian]

National security: Plans for 'secret inquests' face defeat in Lords
Ministers' plans to hold in secret inquests that are deemed to put national security at risk are expected to face defeat when the House of Lords votes on them this autumn. A cross-party committee of peers, including a former lord chief justice and two former attorney-generals, has told the government that any decision to hold an inquest without a jury must be taken by a judge and not a minister. [Guardian]

'Snooper's charter' to check texts and emails
Local councils, health authorities and hundreds of other public bodies are to be given the power to access details of everyone's personal text, emails and internet use under Home Office proposals published yesterday. [Guardian]

Today's Tories really are the party for the arts
Ed Vaizey, Shadow Culture Minsiter: “One of Peter Mandelson's enduring political legacies has been a pithy maxim: only when you are bored of what you are saying will the public start to hear you. So at the risk of boring myself, let me respond to the attack on Conservative arts policy by Dominic Cooke, the artistic director of the Royal Court theatre in London (Lurking in the wings, August 6)….” [Guardian]

So what's the big idea, Chancellor?
Heather Stewart on the possible options available to the Chancellor to stimulate the economy. [Guardian]

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8/10/08

Heron's Eye: 10/08/08

Unions and MPs back 'dream ticket'
A powerful coalition of mainstream Labour MPs and leaders of Britain's biggest unions is backing a right-left 'dream ticket' of Alan Johnson and Jon Cruddas to lead the party into the next general election, having given up on Gordon Brown's premiership. [Guardian]

Rise up to curb knife culture, PM urges at book festival
Gordon Brown called yesterday for communities across Britain to 'rise up' and help end the spiralling violence of knife crime by making the carrying of weapons socially unacceptable. [Guardian]

Darling backs away from stamp duty cut
The chancellor, Alistair Darling, is prepared to disappoint millions of would-be home buyers by ruling out proposals to revive the housing market, Treasury insiders warned last night. After a chaotic week of claim and counter-claim about Treasury plans to suspend stamp duty for first-time buyers, Darling has hardened his stance against the move, which he believes could cost billions to little positive effect. [Guardian]

The perfect Sunday menu: grilled minister, or something over easy?
After last month's final edition of ITV's The Sunday Programme, its weekly early morning current affairs show, the channel that once produced Weekend World and Walden was left without any specifically political output. It scrapped The Sunday Edition, co-hosted by The Observer's Andrew Rawnsley, at the end of last year, leaving the BBC, which has to cover Westminster under the terms of its licence fee, as the only major broadcaster to offer extensive political coverage. [Guardian]

Rich-poor education gap wider under Labour, claim Tories
The Conservatives today set out their credentials to become the champions of social equality in a document outlining the education gap between rich and poor, which they claim has widened under the Labour government. [Guardian]

A Lib Dem tax revolution?
Michael White analyses Nick Clegg’s party leadership and his new direction for the Lib Dem’s tax policy. [Guardian]

Scramble for tickets to Tory conference
The Tories have begun planning for a record-breaking party conference this autumn which will aim to portray David Cameron as a statesmanlike future leader amid signs that the political and corporate establishment is shifting toward the Conservatives. [Guardian]

Transport: London still gridlocked despite congestion charge
The London congestion charge is losing its battle against gridlock after it was revealed that the capital's streets are as gridlocked now as they were before the levy was introduced. [Guardian]

Labour to offer 'birth to school' childcare
Parents could be offered a seamless system of state-organised childcare from birth to school under proposals being discussed within the government in the battle to win parents' votes. [Guardian]

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8/1/08

Heron's Eye: 01/08/08

MPs ordered to pay back money used for 'propaganda'

Five were ordered to repay funds, including three Plaid Cymru MPs, Elfyn Llwyd, Hywel Williams and leader Adam Price, who were each required to give back more than £5,000, and Sidiq Khan, a Government whip, and Malcolm Bruce, Liberal Democrat MP for Gordon, who returned £500.

Separately, Derek Conway, the disgraced former Conservative MP, was asked to return £13,161 after overpaying his student son for working in his office. [Telegraph]


That golden age? It never happened, except in the minds of pessimists

Mark Lawson on how the golden ages of Britain envisaged by commentators are often distorted and difficult to return to. [Guardian]


Blame the rich for feeding the drug industry


Clegg Does Realpolitik, Ends Policy of "Equi-Distance"

Guido on the Liberal Democrats positioning themselves to take advantage of anticipated Labour weaknesses in the next general election. [GuyFalkes]


Election spending: Labour shrugs off Electoral Commission reservations

The government today insisted its plans to curb spending outside of an election period – widely seen as an attempt to outmanoeuvre Conservative donor Lord Ashcroft — would not be derailed by the Electoral Commission's "strong reservations" about its proposed reforms. [Guardian]

Scottish Labour leadership: three MSPs line up to replace Alexander

Former Holyrood health minister Andy Kerr will today launch his bid for the Scottish leadership of the Labour party as nominations close at noon for what is widely expected to be a three horse race.

The leadership and deputy leadership contests were triggered by the resignation of Wendy Alexander, who quit five weeks ago in a row over donations to her leadership campaign last year.

Kerr, the MSP for East Kilbride, will launch his campaign just an hour before the noon deadline.

Cathy Jamieson, who stood down as deputy leader to pitch for the top job, and the finance spokesman, Iain Gray, have already launched their bids. [Guardian]


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7/31/08

Heron's Eye: 31/07/08

Why is New Labour so worried about elections?

John McDonnell MP writes on the need for increased accountability and more democratic representation within the Labour party. He also highlighted the need for more cabinet members who fancy their chances as becoming PM to explain why and have a go, rather than writing articles, holding press conferences and briefing the media. [Guardian]

David Miliband quits foreign trip to spark new rumours of challenge to Brown

David Miliband has sparked fresh speculation that he is about to leave his job as Foreign Secretary to challenge Gordon Brown after suddenly cancelling a four-day foreign trip, and holding what was interpreted as a 'farewell' meeting with his staff. [Times]

Labour's last Scottish leader?

Steve Richards discusses the possible linkage between Labour leaders’ nationality and their support from the English press and voting public. [NewStatesman]

Ministers accused of retreat on role of attorney general

Gordon Brown's plans for constitutional reforms to make the government more accountable to parliament and the public have been turned into a "ragbag of retreats" by the justice secretary, Jack Straw, according to a dissenting report by a minority on a cross-party group of MPs and peers. [Guardian]

Law lords: fraud office right to end bribery investigation in BAE case

The House of Lords yesterday ruled that the Serious Fraud Office acted lawfully when it halted its investigation into bribery allegations relating to an arms deal between Saudi Arabia and BAE Systems. [Guardian]

We're not fundamentalists - personal information deserves respect

Guy Herbert, the general secretary of NO2ID demystifies some of the criticisms that opponents to ID cards receive. [Guardian]

MPs tell internet firms to police 'dark side' of web

The internet industry must take more responsibility for protecting young people from the "dark side" of digital content relating to abuse, violence and suicide, according to a committee of MPs. [Guardian]

MPs, step away from the internet

Charles Arthur writes on the distance in thinking between MP’s penchant for top down planning and the everyday functioning of the Internet. [Guardian]

China accuses US of trying to sabotage Olympics

The Chinese government accused US politicians of displaying "evil motives" and trying to "sabotage the Olympics" today after the House of Representatives passed a resolution condemning Beijing's record on human rights. [Guardian]

Why the News of the World should be caned for its scandalous errors

Roy Greenslade intuitively deliberates on the Max Moseley and NOTW trial. [Guardian]

How the unions bailed out Labour with £10million

The scale of Labour's reliance on the trade unions was revealed yesterday as the debt-ridden party published its accounts. [DailyMail]

King of the Hill

With all of the tremendous political weight that Prime Minister Vladimir Putin has accumulated over the last eight years, he has the rare ability to wreak havoc on financial markets with only one short phrase.

Putin's harsh criticisms on July 24 of the Mechel coal and steel company caused the value of its American Depositary Receipts to fall by 36 percent, or nearly $6 billion, on the New York Stock Exchange. Two days later, when Mechel's management admitted that it had been selling raw materials to overseas customers at half the price it charged on the domestic market -- precisely as Putin had claimed in his public rebuke -- its share price rebounded by 22 percent. [MoscowTimes]

Tory MP Alan Duncan sues Telegraph for libel

Tory MP Alan Duncan is suing Telegraph Media Group for libel over a story published in the Daily Telegraph. Duncan, the shadow secretary of state for business, enterprise and regulatory reform, is demanding unspecified damages. He claims that a front page story headed: "Cameron tries to steady Tories as EU sleaze scandal spreads", and an inside page story: "Second shadow cabinet member in sleaze inquiry", were defamatory. [PressGazette]



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7/30/08

Heron's Eye: 30/07/08

Lib Dem Donor On The Run

A millionaire businessman who donated £2.4 to the Liberal Democrats has gone on the run ahead of his trial for fraud. [SkyNews]

Giant TVs win my gold medal for crassness

Griff Rhys Jones on the creep of large scale television screens into civic centres and their imposition into our daily life. [Times]

David Miliband refuses to rule out leadership challenge to Gordon Brown

Miliband looks at his watch. Journalists go in a frenzy. [Guardian]

Labour cuts debt to £18.9m

Does the non-election last year explain the £7m surplus? [Guardian]

Boris Johnson needs someone to keep an eye on him

Dave Hill on the need for effective scrutiny of Boris Johnson, particularly during the summer. That reminds me, why is recess so long? [Guardian]

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7/29/08

Grimsdale's Ire: 29/07/08

Minister calls for more police in schools

New measures to deal with violent spate of shirts not being tucked in [Guardian]

Appeal court clamps down on use of painful restraint in child jails

The use of painful physical restraint to maintain discipline in privately run child jails has been outlawed by the court of appeal as an infringement of young people's fundamental human rights. [Guardian]

It's too early to dismiss all these new schools as mediocre

John Sorrell, chair of Cabe optimistically defends the Government's criticised £35bn school-building programme. I'm hoping for some good CIF mud slinging….[Guardian]

Can the unions save Labour?

Gregor Gall provides an even-handed analysis of the Warwick II agreement. [Guardian]

Daniel Howden: The world's most important political project

A reminder of the importance of Turkey and the fragility of the nation at this moment in time. [Independent]



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Heron's Eye: 29/07/08

Harriet Harman denies plotting to bring down Gordon Brown

The term get off the pot or use it comes to mind when I think of Labour’s leadership issues in this parliament. Isnt the party in the exact same situation that it was in when they were hoping Tony Blair would voluntarily step down? [Guardian]

Clegg sights 50 Labour Seats

Despite underperformance at all the recent by-elections and London mayoral election the Lib Dem leader is highly optimistic for the party for the next election. [PoliticsHome]

Politicians Holidays

Michael White takes a look at politicians trying to look normal. [Guardian]

Tony Blair tipped for top EU post

New poll puts Mr Blair as frontrunner to become EU President. Is this a conspiracy to undermine the Lisbon Treaty? [Guardian]

Ken's comeback

Ken Livingston continues his electoral campaign, highlighting Mr. Johnson’s purging of women and ethnic minorities. [Guardian]

A law to label real fur - that should bring the voters back

Maire Antoinette digs the knife into New Labour. Why am I surprised that Polly Toynbee would be pick up on the issue of labelling real fur? [Guardian]

Road to nowhere

AC Grayling reminds us that hatred is not confined within the boundaries of religion or nationality. [Guardian]

From little acorns

Ed Pomfret cheerleads for a renaissance in new native forests. [Guardian]

The media's distorting lens

Paul Mason cautions on the language and intentions of the media when reporting criminal activity. The following CIF comments are recommended. [Guardian]


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1/28/07

Is The UK’s Current Method of Financing and Distribution of the NHS Sustainable?

The UK’s egalitarian post war reforms to guarantee health care for all, prioritising need over ability to pay for treatment was a major reform which has greatly benefited some of the least well off in society. However, being ranked only 24th in the world in terms of performance on health levels[1] the NHS is no longer the flagship of UK posterity, despite its redistribution and efficiency benefits. Many other countries differing styles organisational structures, and funding and allocation mechanisms have made the UK’s health service comparably less successful. Heavy investment by the Labour party in order to improve equality and efficiency of service has proved unsuccessful raising some questions as to the long term sustainability of some of the NHS’s founding principles. This essay is focusing on whether reforms to the funding structure and aspects of its distribution of funds would help to alleviate some of the problems in the UK’s health service.

Background on Health Care
Polikowski considered that for most governments, health services policy pursues “three objectives: universal access; affordability; and comprehensiveness of covered benefits”[2] and that universal access is a highly valued principle in most industrialized countries. In the
UK the founders of the NHS planned for a system that would be able to treat everybody. The 1944 White Paper proposed that the proposed service “must be ‘comprehensive’ in two senses – first, that it is available to all people and, second, that it covers all necessary forms of health care.”[3] It was assumed that “making health care free at the point of use would lead to equal access: equal financial access results in equal effective access.”[4] This was considered to be of benefit to all, as improved access to medicine and higher qualities of treatment would allow the infectious diseases of the day to be overcome. This public good would consequentially benefit all, as the cost of healthcare would eventually fall, as a fewer people became ill and the health service benefited from economies of scale from treating all people in the UK.

Marchand felt that public provision can work well as a sorting device “if low income citizens choose the publicly provided good, while high income citizens go private. The latter contribute to public revenue through income taxation, which is then used to finance the delivery of the private good to the former at a price below the marginal cost.”[5] Consequentially, the rich thus finance the consumption of the poor indirectly.

However, this does not appear to be the case. Firstly, people are living “long enough to contract other diseases that are just as costly to treat, and often more costly because they require expensive medicines or treatments or technology.”[6] Secondly, spending increases in health care creates “higher expectations for quality and access from the public, and from professionals for better pay, conditions, infrastructure, and equipment.” For Butler, “as the population is getting richer it is demanding more and more so that the NHS has to intervene “on health problems that years ago they would have bourne quietly as not being worth the doctors time. And if they are not paying directly, the bill is being picked up by taxpayers, why indeed should they hold back?”[7]This is backed up by Maynard, who observes that this pattern is creating an increasingly ‘medicalised’ society, with no level of expenditure at which all public and professional expectations can be met.[8]

As a result of the Labour Government’s major investment the proportion of private expenditure in total (current) expenditure on health care growing from 10.5% in 1980 to 17.8% in 2000.”[9] This helps to explain why the NHS has become one of the worlds largest employers and a budget now larger than the GDP of 155 members of the UN.[10] However, there are growing concerns that the NHS is becoming too large and too complex to coordinate effectively, resulting in diseconomies of scale. Butler suggests that large centralised state monopolies are “hard to run, and even harder to reform. If their funding comes from the government rather than from users, they are slow to change in response to changing user demands. Since they are not facing competition, they have little incentive to innovate, or raise quality, or keep their costs under control.”[11] This is backed by NHS’s finances are still in trouble, with “many trusts reporting deficits and some plainly unable to bring their budgets under control.”[12]

There are even concerns that the NHS is failing to provide equal access. As Cooper suggests, “there was nothing inherent in the 1946 Act which could have systematically brought equality about.”[13] One of the main reasons was that during the conception of the NHS different parts of the country had significantly different levels of bed and staff, with Powell suggesting that The NHS inherited a very unequal geographical pattern of provision. [14] Similarly, while Klein recognises that there were some efforts to correct the distribution of patient care he still contends that the hospital sector “largely saw an incremental pattern of resource allocation that perpetuated existing inequalities.”[15]Powell even goes as far to suggest that Labour’s 1997 White Paper’s aim to deliver ‘fair access’ will achieve little.[16] Harrison also feels that there are limits to the NHS’s desire for equity, citing the introduction of charges of prescriptions in the 1950s. However, these criticisms may be too loud, as the UK was ranked 8th in terms of responsiveness of health systems and level of distribution by the WTO.[17]


Direct Taxation

One of the major reasons for these issues occurring is the method of health make funding available, as well as to set the right financial incentives for providers, to ensure that all individuals have access to effective public health and personal health care. This means reducing or eliminating the possibility that an individual will be unable to pay for such care, or will be impoverished as a result of trying to do so.” [18]


Following the last Conservative Government the ratio of investment had reached historically low levels, of 7.3% of total expenditure of GDP. To deal with this the Labour Government has implemented a sustained large injection into the NHS, raising the proportion of private expenditure in total (current) expenditure to 8.3% of GDP.[19] However, the expected renaissance of healthcare has failed to materialise leading to commentators to suggest varying changes in the way health care is provided in the
UK.


The majority of these criticisms come from libertarian arguments. They believe that the “achievement of freedom requires that individuals are free to make their own choices, constrained by Government only to the minimum necessary extent to provide security and legal systems that protect private property rights and ensure contracts are enforced.”[20] It is assumed that in such a system “individuals will pursue their own interests and those unable to make their way will be cared for by charity, funded by voluntary economic growth and ensure the freedom valued so highly by libertarians.”[21] Despite the increases in funding in the last couple of years the NHS’ finances are still in trouble, with “many trusts reporting deficits and some plainly unable to bring their budgets under control.”[22] Of course there are a number of factors which could help to explain this crisis, such as demographics. However, it is still the case that the centrally funded system in place permits inefficiencies to continue.


Egalitarians who tend to be supporters of the NHS put “equality of opportunity forward as the primary social goal. In such a society all individuals have the right to basic goods and it is for society to define what these basic goods should be. In this world lack of achievement must not be punished and collective mechanisms are needed to ensure all receive care. For egalitarians equalising opportunity may necessarily involve restricting the freedoms of others through taxation and the law”[23]


It has to be remembered that the
UK has a very unique system of health care funding, with some 83.4% of healthcare spending in the UK came through the state (see table below). Of the Organisation of European Cooperation and Development OECD countries, the public sector share was higher only in Luxembourg, some Nordic countries (Sweden, Norway, Iceland) and some former Communist countries (Slovakia, Czech Republic).”[24]

Structure of health system financing and provision in four countries p102[25]

For the Government direct taxation makes it easy to control expenditure compared to indirect or national health insurance. This is because they have some degree of delegated discretion in setting contribution rates. The method of funding is seen as an institution by many, making it difficult to reform, with many considering proposals for ‘patient participation in health care financing’ to be “misguided or cynical attempts to tax the ill and/or drive up the total cost of health care while shifting some of the burden out of government and insurer budgets.”[26]

Hypothecated Taxes

Hypothecated taxes have been mooted in the past, in order to make people understand how much the NHS costs. This visibility is assumed to reinforce the opportunity cost of health care and that it is not free and hopefully discourage people from making excessive demands on the system. For libertarians such as Butler it would then become possible to stimulate competition through allowing people to contract out of it. This occurred for state pensions, where people were able to divert their money into their own private-sector pension plan rather than the state pension.

However, the Treasury has deep-seated objections to hypothecated taxes, as if they conceded the principle “then motorists would expect the whole of the taxes they pay to be spent on the roads, not a quarter of it; which drinkers might object that very little of their excise duty they part with goes to deal with problems of alcoholism or drunkenness, and that the duty should be reduced; while peace campaigners may demand to be excused their contribution to the defence budget.”[27]Butler even suggests that it could even have the opposite effects, increasing demand as people attempt to increase their return for their taxes. It is also unlikely that the ability to contract out of the NHS will be pursued, as the Labour Government closed down the state-pension exemption. The public has little enthusiasm for rebates, as they are perceived as being less than the average health spending and favouring wealthier people. Similarly, “if it is higher, then people argue that health spending on those who choose to remain in the state system will be sorely reduced. Many people who take the rebate would be insuring privately anyway – the so called deadweight cost.”[28]


Local Funding

Just as the Labour Government is decentralising its influence over local health authorities it may be worth considering the possibility of local funding. In
Denmark 80% of funding is raised locally by 14 country councils, making it a major issue in local elections.[29] Commentators such as Butler believe that this makes people more focused on healthcare spending, as it is less opaque than the Treasury operated system that currently exists.


There are concerns that such a system would make it more difficult to redistribute funding between regions in terms of equity. Also the council structure is not developed enough sufficiently to take on such a burden, with councils struggling to justify current budgets to their electorate as a result of funding structures in place. Also,
Butler fears that such systems would be built upon local monopoly (or monopsony), with comparisons between local areas “much more limited than they would be in a completely free private market.”[30]


National Insurance Schemes

The fairness argument put forward by egalitarians has merit but it does not necessarily require the state to pay for an provide all medical care. As
Butler points out, “the state does not run and finance grocery or clothes shops; rather it supports the incomes of those who cannot otherwise afford food and clothing, so that they are empowered as customers in those markets. It does not fund people who can fund themselves.”[31] The UK’s model is an exception, with most other countries operating some form of national (or social) insurance scheme, with varying forms of competition and cover.


Varying National Styles

Being ranked 4th in terms of performance on health levels
France is seen as operating a successful national insurance scheme.[32] There employers and employees both pay towards a basic health care package, around 20% of the total payroll, with employers paying close to two thirds.[33] The system permits citizens a good choice of family doctor and can contact specialists without having to see a gatekeeper. Despite this 85% buy private insurance in order to improve the comfort and privacy of care whilst in hospital. Similarly, Australia operates a universal hypothecated tax but 50% of Australians purchase private insurance from independent providers.[34] This method is actively promoted by the government through generous tax rebates and ensuring that premiums do not vary according to health risk.

More market based schemes exist in countries like Switzerland, which has a compulsory social insurance system that is paid by individuals not employers, and where the insurance funds actually compete between each other based on government approved standards. There are a variety of schemes available in the USA but is predominantly based around private insurance and usually paid for by employers. There are government-financed systems such as Medicaid and Medicare for poorer families and the elderly but there are many disadvantaged people who do not qualify for it. The USA model is very expensive, with 13.3% of total expenditure of GDP compared to the UK’s 8.3%. to deal with this some citizens end up choosing health management organisations, where members contribute owner premiums but access to service is restricted to an actively managed gatekeeper function. However, many eschew this system in America, as many “resent the rationing implicit in the HMO model, contrasting it with the free access afforded by the comprehensive insurance system.”[35]

An interesting mix of these different funding styles exists in the Netherlands, which is part tax funded and part social insurance. Tax funding covers long-term, uninsurable or catastrophic events or illnesses. However, for acute care there is compulsory social insurance, with contributions being income assessed. For Butler, the Netherlands has a good way of mixing tax funding for unaffordable items, although he does recognise that it does “lead to almost constant debate and political pressure to include more and more items in the free, tax-funded part of the system.”[36]

Private Funding

Critics of NHS funding such as Bosanquet consider that real reform must extend to demand as well as supply: “A more dynamic NHS required a national environment where there are independent sources of funding. Without change in funding, any supply side only reform is likely to run into new problems of rationing as improvements increases the demand for services. The belief that it will be possible both to have reform and continue with taxation as the sole source of funding is unrealistic.”[37]


The perceived advantage of private health organisations is that if care is perceived to be free, people would demand more of it, making demands on trivial conditions. For
Harrison “if the patient sees or suffers at least some of the cost can such over demand be avoided” and that the question is “how to restore that link while at the same time ensuring that it does not deter people from seeking and getting the medical care that they truly need.” [38]


There appears to be a benefit from taking some services from the straightjacket of direct funding. As Bosanquet suggests, “although core services will be tax funded there will be many supplementary services at differing levels where they will be an element of co-payment. This is already happening in services such as those for infertility and for services such as physiotherapy.”[39] In the future as newer but more expensive treatments emerge it is unlikely that offering non-critical services free of charge will be efficient or even equitable, given the fact that many people who would be able afford such treatment would be able to receive it without any financial contribution or assessment.


An econometric study by Besley et al for the demand for private health insurance in the
UK suggested that insurance is a normal good and that among the six regional public health authority quality indicators, only the size of the long-term waiting lists shows up as a significant explanatory variable.[40] These conclusions when combined with second best arguments as a result of interfering in markets lead to Marchand suggesting that the coexistence of a public and private health sector, with waiting times in the former, enacts redistribution and that “negative redistributional side effects are part of the price tag for policy measures aimed at reducing waiting times/lists.”[41]

Any enlarged private health care system in the UK will still be a mix between public and private provision. For Merchand this compromise is never desirable, as the redistributional effects are of second order relative to deadweight losses; that actuarially fair sickness insurance that protects people without private health care insurance against waiting time risk “though desirable from the citizens point of view is detrimental for the in-kind redistribution agreement.”[42]


Pooling

Clearly any regulatory issues regarding the way insurance schemes are implemented. There are concerns over selection behaviour in a more market orientated health care system. Either the health organisations will create a pool of customers with low risk (an example of risk selection) who will contribute but not cause expense, or the high risk consumers will claim more (an example of adverse selection). As a result the WTO warns that any system “becomes a battle for information between consumers (who usually know more about their own risk of requiring health interventions) and the pooling organisation (which needs to know more about consumers’ risks to ensure long term financial sustainability).”[43] This increases costs on the service in order to maintain competitiveness may be significantly larger than the financial benefits from market reforms.


If risk selection predominates and there is weak regulation then the WTO feels that the poor and sick will be excluded. Categories such as the disabled or the elderly would be denied treatment in an unregulated market if they had not saved enough income. At the same time the healthy and young would tend to not need the services for which they had saved. It would be important to create a structure in which “people benefit from mechanisms that not only increase the degree of prepayment for health services, but also spread the financial risk among their members.”[44]


However, it must be remembered that although larger pools offer better economies of scale after a while very large pools (such as the NHS) lose their advantage. This notion of multiple pools existing successfully in an economy without fragmentation is one of the strongest arguments for reducing the scope of the NHS.

Pooling to redistribute risk, and cross-subsidy for greater equity

(arrows indicate flow of funds)[45]

Charging

Currently charging exists for medicine and some medical equipment. It is not a significant source of revenue, with prescription charges only bringing in less than 1% of what the NHS costs.[46] However, the scope for expanding large or lengthy medical interventions is quite controversial but crucial, as it is a key battleground between egalitarian and libertarian policy makers.

Charges have existed since the 1950s on grounds of efficiency, as the need to pay a small amount towards the cost of mechanism helps to deter people from purchasing unnecessary medicine. However, for Harrison it is important to deal with the ‘worried well’, as it may identify illness earlier than would occur if price barriers reduced utilisation.[47]

There is an equitable element built in to the UK charge system, as it is still subsidised. In France, the cost is greater throughout its health service. However, the government repays up to 75% or 80% of the cost for the poorer patients, with the poorest six million receiving services free.[48] This system does tend to be bureaucratic and expensive as a result of level of means testing required making such an implementation in the UK possibly inefficient.


Conclusion

There is nothing particularly wrong with the NHS. It is an efficient run service which has passed Polikowski’s standards of universal access, affordability and comprehensiveness of covered benefits. There may be questions over its efficiency but its ability to distribute has been successful despite flaws. Despite an enthusiasm for market based reforms the Labour Government has been focused on improving the NHS and reversing the slide that occurred during the previous Conservative Government. However, this has not been as successful as hoped as the larger budgets have been absorbed by needed wage increases and patients with higher expectations for health care. The new Conservative leader has broken ranks from the traditional party line in support of the NHS. However, the cracks that are appearing in the NHS system are starting to show. There are battle lines appearing over the need for more regional redistribution and increased use of private health care. Despite this the public is relatively content with the current financing mechanism for healthcare and fearful of suitable alternatives, making the financing and principle distribution of the NHS likely to be the same for the foreseeable future.


Appendix

Fairness of financial contribution to health systems in all Member States,

WHO index, estimates for 1997[49]

Overall health system attainment in all Member States, WHO index,

estimates for 1997[50]


Health System Performance in all Member States, WHO Indexes, Estimates for 1997[51]

Health System Performance in all Member States, WHO Indexes, Estimates for 1997[52]


[1] The WTO Health Systems: Improving Performance (The World Health Report) 2000

[1] OECD OECD Health Data (OECD, Paris) 2003

[2] p. 133–142. Polikowski, M. & Santos-Eggiman, B. How comprehensive are the basic packages of health services? An international comparison of six health insurance systems (Journal of Health Services Research and Policy), 2002

[3] P7 Powell, P and Exeworthy, M Equal Access to Health Care and the British National Health Service (Policy Studies, Vol 24, No1), 2003

[4] p4 Powell, P and Exeworthy, M Equal Access to Health Care and the British National Health Service (Policy Studies, Vol 24, No1), 2003

[5] p2 Marchand, M and Schroyen, F Can a Mixed Health Care System be Desirable on Equity Grounds? (Scand J of Economics) 2005

[6] p294 Butler, E Alternative Funding Models (The Future of the NHS)

[7] p294 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[8] p1 Maynard, A and Sheldon, T Funding for the National Health Service (York Health Policy Group, Department of Health Sciences, University of York) 2002

[9] OECD OECD Health Data (OECD, Paris) 2003

[10] p293 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[11] p293 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[12] p293 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[13] Cited in p4 Powell, P and Exworthy, M Equal Access to Health Care and the British National Health Service (Policy Studies, Vol 24, No1) 2003

[14] p4 Powell, P and Exworthy, M Equal Access to Health Care and the British National Health Service (Policy Studies, Vol 24, No1) 2003

[15] Klein, R. The New Politics of the NHS (4th edition. Harlow: Longman), 2001.

London: IEA.

[16] p4 Powell, P and Exworthy, M Equal Access to Health Care and the British National Health Service (Policy Studies, Vol 24, No1) 2003

[17] The WTO Health Systems: Improving Performance (The World Health Report) 2000

[17] OECD OECD Health Data (OECD, Paris) 2003

[18] p93 The WTO Health Systems: Improving Performance (The World Health Report) 2000

[19] OECD Health Data (OECD, Paris), 2006

[20] p281 Harrison, T Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[21] p281 Harrison, T Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[22] p293 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[23] p281 Harrison, T Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[24] p293 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[25] p102 The WTO Health Systems: Improving Performance (The World Health Report) 2000

[26] p287 Harrison, T Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[27] p295 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[28] p294 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[29] p297 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[30] p297 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[31] p294 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[32] The WTO Health Systems: Improving Performance (The World Health Report) 2000

[33] p298 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[34] p301 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[35] p301 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[36] p300 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[37] p311 Bosanquet, N and Haldenby, A The Case For Pluralism (The Future of the NHS, XPL Publishing), 2006

[38] p296 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[39] p311 Bosanquet, N and Haldenby, A The Case For Pluralism (The Future of the NHS, XPL Publishing), 2006

[40] Besley, T., Hall, J. and Preston, I. The Demand for Private Health Insurance: Do

Waiting Lists Matter?, (Journal of Public Economics), 1999

[41] P3 Marchand, M and Schroyen, F Can a Mixed Health Care System be Desirable on Equity Grounds? (Scand J of Economics) 2005

[42] p3 Marchand, M and Schroyen, F Can a Mixed Health Care System be Desirable on Equity Grounds? (Scand J of Economics) 2005

[43] p104 The WTO Health Systems: Improving Performance (The World Health Report) 2000

[43] OECD OECD Health Data (OECD, Paris) 2003

[44] p99 The WTO Health Systems: Improving Performance (The World Health Report) 2000

[45] p100 The WTO Health Systems: Improving Performance (The World Health Report) 2000

[46] p297 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[47] p288 Harrison, T Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[48] p297 Butler, E Alternative Funding Models (The Future of the NHS, XPL Publishing), 2006

[49] p188 The WTO Health Systems: Improving Performance (The World Health Report) 2000

[50] p196 The WTO Health Systems: Improving Performance (The World Health Report) 2000

[51] p199 The WTO Health Systems: Improving Performance (The World Health Report) 2000

[52] P200 The WTO Health Systems: Improving Performance (The World Health Report) 2000