It’s fair to say that public services in the UK are in a bad way. The quality and performance of these services has declined significantly in recent years according to many studies, and confidence in public services is currently at an all-time low. The primary cause of this malaise is lack of funding: Local Authority grants have been going down in real terms for some time, and particularly so since the launch of austerity in 2010. Decades of under-investment in public services means they end up costing more in the long run. Add to that a workforce crisis caused by public sector workers being treated like garbage and things are looking pretty bleak – particularly when you consider that the decline disproportionately affects those who rely on public services most, generally the worst-off in society.
As ever, the fundamental cause of all these problems is neoliberal capitalism. However, when it comes to public services there are exacerbating factors that have made these problems even worse. First, there is the Health and Social Care bill, which has been increasing for many years for reasons nobody seems to fully understand. The Health and Social Care Select Committee says we need to spend a lot more money on this but the money just isn’t being provided to Local Authorities. Then there was COVID, which put health services under intense pressure and highlighted the impact of years of under-funding. COVID may not be a one-off either: we are told that pandemics are likely to become more frequent in future, and may even become the norm.
Before talking about what can be done about these problems, it might be worth dispensing with a couple of red herrings that are often cited as reasons for the decline. First there is Brexit, the centrists’ bogeyman. There is no reason I can see why Brexit would have any more than a marginal impact on the provision of public services in the UK. Then there is immigration, the right-wingers’ bogeyman. It is often said that this is contributes to the problem by putting additional pressure on public services; but the truth is that immigration is keeping UK public services afloat. I have personal experience of this: my mother-in-law has Motor Neurone Disease and requires round-the-clock care, which is provided almost exclusively by foreign-born carers.
The problem in a nutshell is that although we can all agree that public services need to be improved, Local Authorities just don’t have the money to make the required improvements. Local Authorities are in a bind as they face increasing outgoings for services they are legally required to provide but have limited ways to generate revenue. The obvious solution is to increase council tax, but this is highly regressive. Another obvious solution is to increase business rates, but this leads to concentrations of wealth in certain areas and concentrations of poverty in others. Wealthy areas attract more businesses, so can raise more money in business rates and become more wealthy; conversely, poorer areas don’t attract as many business, so become even poorer.
The best solution of course would be to end austerity and give Local Authorities the money they need to fund public services effectively, but obviously this is in the hands of central rather than local government. Local Authorities must do what they can within the existing neoliberal system. In fact some have fully embraced the neoliberal mindset by trying to raise revenue through speculative investments, often with disastrous consequences (Woking council, I’m looking at you). A more sensible approach, I think, would be to try to raise revenue from their existing assets. In particular, local road networks are a key piece of infrastructure that are owned by Local Authorities, and there are a couple of ways in which these could be utilized for revenue generation.
First, Local Authorities can introduce Clean Air Zones in towns and cities. These are often unpopular and criticized on the grounds that they are regressive, as they tend to target older vehicles that create more pollution, and older vehicles tend to be owned by poorer people; but they don’t need to be designed in this way. How about introducing Clean Air Zones that specifically target gas-guzzling SUVs? (There is nothing more ridiculous than seeing an enormous American pick-up truck driving through a quaint English town.) In a similar vein, Local Authorities could increase car parking charges in town centres. Both of these measures would raise revenue and discourage the use of cars, reducing congestion and pollution.
Those are just a couple of ways in which Local Authorities could raise revenue; there are surely others. It’s maddening to see Local Authorities so strapped for cash, particularly those in affluent areas like Surrey where I live. They should be able to tap into some of that wealth somehow. Ultimately though, a long-term solution to the crisis needs to come from the centre and this will never happen as long as we have a government that pursues an austerity agenda. Until we get a some more sensible people in charge, public services will be stuck in the same doom-loop and will only get worse.