Labour's Public Service Reform Ambitions Stalled by Centralisation Impulse
Keir Starmer's drive to reform public services is failing to achieve its core aim of shifting power from Whitehall to local areas, according to a new analysis from the Institute for Government. The report highlights that the government's three guiding principles for reform, set out last summer, are not on track to be realised by the next election, due by summer 2029.
Government's Reform Principles Off Course
The objectives included organising public services around people's lives, improving outcomes through prevention, and devolving power to local areas best placed to understand community needs. However, the IFG's assessment indicates none of these goals are progressing as planned. Stuart Hoddinott, a public services expert at the IFG and author of the report, stated that by the end of this parliament, public services are likely to become more centralised, with integration slowing or reversing, and no measurable shift towards prevention occurring.
"This would be a failure on its own terms, and would add up to a historic missed opportunity for a government that has devoted so much energy to public service reform," Hoddinott emphasised.
Centralisation Trends in Key Sectors
The report points to specific examples where centralisation is undermining devolution efforts. In health, the abolition of NHS England has brought power more directly under the Department of Health's control. In local government, the Ministry of Housing, Communities and Local Government is eliminating lower-tier councils to create larger unitary authorities. These reorganisations in police, local government, and the NHS have concentrated control rather than dispersing it locally.
"Rather than devolving power to services at the local level, it has revealed a preference for centralisation, with control over four key services, including the NHS, being moved closer to ministers," the report noted.
Mismatch Between Aims and Actions
Insiders familiar with Downing Street's reform goals suggest that the ambition for localised services is clashing with the instincts of many ministers and officials who prefer to retain power centrally. The IFG report criticises this disconnect, stating that structural changes are complicating objectives like local integration and prevention. "There is a mismatch between its stated aims and how departments are driving change," it added.
Potential Solutions and Digital Initiatives
The IFG recommends that any corrective action should be led by figures close to the prime minister, such as Chief Secretary Darren Jones, using the public services cabinet committee for coordination. Jones is spearheading the introduction of a digital ID system, aimed at integrating public services onto a single platform to enhance accessibility. This initiative seeks to create a digital state that delivers services directly and efficiently.
However, the timeline for public availability of digital ID remains uncertain, with hopes it will be operational before the 2029 election. The Cabinet Office did not provide comment when approached.
This analysis underscores the challenges facing Labour's reform agenda, as centralisation pressures continue to hinder progress towards a more devolved and preventative public service model.
