Decreasing public sector productivity is costing taxpayers £58.4bn a year according to a think tank.
The Centre for Economic and Business Research (CEBR) made the claim after analysing Office for National Statistics figures.
The CEBR said public sector productivity had declined by 3.4% between 1997 and 2007 whereas, over the same period, productivity in the market sector rose by 27.9%.
CEBR chief executive Douglas McWilliams said :
'if the productivity calculation was applied to central government final consumption expenditure and further education applying to under 19s, it equated to £58bn per year.
“This cost simply relates to the falling behind in public sector productivity since 1997…
“Hard pressed taxpayers will not take kindly to finding out that not too far short of half the income tax that they pay is simply to cover the cost of the increased inefficiency of the public sector that has occurred since 1997.”
Mr McWilliams said the figures suggested it would be possible to make substantial cuts in public spending without too great an impact on the levels of services.
Isn't this what the Scottish government are attempting to do?
Source: LGC
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14 comments:
Perhaps they could save some money by not buying untested flu vaccines. Story in the Guardian says that 60% of GPs would refuse to be immunised, saying the vaccine is potentially dangerous, whereas swine flu is a very mild illness. Also reported by Meryl Nass.
SR,
Is that north or south of the border?
Perhaps it's down to Labour's mismanagement of the economy, quangos and the easy of access to the internet at work!
Crazy D
Ah the joys of socialism writ large upon a hapless country.
Nothing that a few lengths of hempen rope and a few thousand lamppost couldn't cure......................pour encourager les autres.
Just sayin.
What a terrific boon 'management' has been to the public services. Before when schools were largely run by teachers, hospitals run by doctors and nurse the police were .. you get the picture - when everything tended to be more or less effective and efficient - along came the biggest growth movement of all time - management.
This ravenous beast prodded by politicians and infatuated by inappropriate positions of power over professionals are costing the tax-payers millions in salaries and really stupid systems of inflicted working practice.
Private industry and business would probably fire at least two thirds of these non-productive desk-jockeys to allow streamlined good management to manage!
Management in the NHS has risen by 58% while doctors and nurses don't even come close (18-25%).
The correlation between increased 'management' and failure to thrive must be obvious? The government's remedy is more management - or as it is known in the NHS more oil on the flames!
The unintended consequences of this general debacle is that we are losing far too many of our best to countries abroad who select and welcome them with open arms (5000 medics in the last 2 years)- or that many potentially talented professionals are choosing other non-public service careers.
I'm sure they could Vronsky, but it's all part of the greater plan.
I won't be accepting their vaccine that's for sure.
CD I wondered that then I noticed it said 'national' and I know this paper the LGC is read here in Scotland.
Indeed QM but will the people in power take note and do something? No they won't because that would be a vote loser.
Incredible amount of money being wasted though isn't it.
As I said to Vronsky Clarinda, do you think David Cameron will be willing to thin out public services? Somehow I think not.
58%? That has to get into the public arena that figure. Horrendous.
I've mentioned the brain drain of doctors before and I must continue to do it to show the people who think the NHS delivers the best healthcare.
Dear S.,
and...we're back to the big spreadsheet.
This is just another way of these guys covering the fact that the public sector haven't yet had the fact that their pensions have been stolen formally recognised by accounting methods. That's what all that management has been doing.
This type of "think tank" activity is always spin to hide something they want to steal, though this time it's to cover the fact that it's been stolen but not recognised yet.
Heads up
Dear Incoming (My my we're becoming very formal these days but it's rather pleasant!)
So do you think this sum involves pensions? I wonder what public employees think of the article or don't they read such publications?
Dear S.,
I'm in a funny mood today, see my adventures elsewhere, I'm perhaps being obtuse.
It is only part of a campaign to keep the subject of stolen financial anything off of our discussions.
Private pensions have been looted ages ago, the state of the public sector pensions are obscured in Treasury double speak, but have to be outed at somepoint.
This kind of excercise provides cover for that eventuality.
Though I'm not denying that there are inefficiencies my concern is with accounting practices.
Remember one year the PO handed HM treasury £1b, then almost the next there was £500m red ink. That kind of chicanery has been hidden in other parts of the public services that have yet to be shaken up.
Heads up.
Thanks for the great map on the EU divisions Incoming.
I see what you mean here. As a non-number cruncher I'm sorry you're having to spell it out but I've got it now.
All Education Departments should be closed down. Schools can employ their own secretaries.
- Aangirfan.
Having experienced the quality of both the private and public sectors I would agree with you Aangirfan.
Reduce taxes and allow parental choice.
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