Blog Archives

Voting intentions are changing – as more is seen and heard about Boris Johnson

Two days is a long time in pre-election politics

On 28th November Francis Elliott’s triumphalist article in the Times heralded a seat-by-seat analysis based on polling by YouGov for The Times.

But two days later, a BMG poll which questioned 1,663 voters between 27 and 29 November showed that the Conservative lead had ‘narrowed sharply’ (Reuters) – halved when compared with last week’s poll.

Robert Struthers, BMG’s head of polling, said “If this trend continues, this election could be much closer than it looked just a matter of weeks ago.”

Rob Merrick (Independent) points out that the results come at the end of a week when Mr Johnson has faced further criticism on several counts, compounding earlier allegations, including:

Photograph from article about Trump’s visit in PoliticsHome, which set up by former deputy chairman of the Conservative Party Lord Ashcroft 

Robert Struthers said there was growing evidence Labour is “starting to build momentum” ahead of the election on 12 December. 73% of those who backed the party at the 2017 election now planning to do the same on 12 December – up from 67% a week ago.

The change in direction is shown above and BMG’s headline voting intention figures take the Conservative lead from a likely majority into possible hung parliament territory. Will this continue and take the Labour Party into the lead?

 

 

 

 

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A Labour government will reverse forty years of privatised services

On 20 July Labour’s Shadow Chancellor John McDonnell launched a new Labour Party document, Democratising Local Public Services: A Plan for Twenty-First Century Insourcing. (1).

A September paper by Richard Hatcher, which may be read in full here, discusses its implications for social care, referring to Birmingham as a case study. Edited extracts follow (several hyperlinks added):

Democratising Local Public Services commits a future Labour government to reversing four decades of outsourcing by local councils by legislating to ensure that the default option for councils is for the public sector to deliver its own services.

The section headed ‘How Outsourcing Has Gone Wrong’ identifies two key issues:

  • poor quality of provision: there is now widespread evidence of failures in service quality in services provided through outsourced contracts’ (p12)
  • and lack of public accountability in different forms: the Information Commissioner has noted that just 23% of the public polled thought that the activities of private providers of public services were accessible. Information about outsourcing companies can only be requested by the public if it is held by a public authority on behalf of that outsourcing company. (p13)

Hatcher points out that social care is the largest single area of council spending, most of which goes to external providers, and finds it very surprising that there is only one reference to social care in the 53 pages of the Labour Party report. This is a regrettable missed opportunity because social care exemplifies the two major problems with outsourced provision that the Labour party report identifies and is therefore a prime candidate for insourcing.

The Thatcher government, we are reminded, created a lucrative new market in social care by forcing local authorities to spend 85% of their social care budget in the private sector, decimating local authority provision.

Since then the transformation towards a market in adult social care has progressed steadily, with no attempt by any government to halt or reverse the trend. [ ….]  In 1979 64% of residential and nursing home beds were still provided by local authorities or the National Health Service; by 2012 the local authority share was 6%; in the case of domiciliary care, 95% was directly provided by local authorities as late as 1993; by 2012 it was just 11%. This also means the bulk of the adult social care workforce – around 72% – is now employed in the private and voluntary sectors, along with another 14% employed by individual service users making use of ‘personal budgets’, leaving just 14% employed by local authorities.’ (pp7-8)  [2]

However, the prospect of exceptional profits attracted big equity investors into this new market. They bought up small providers and opened much larger homes for maximum profit, employing staff, largely women, on low pay, according to Social Care as a Local Economic Solution for the West Midlands, a report by David Powell, New Economics Foundation, with Karen Leach and Karen McCarthy, Localise West Midlands, published in 2017 [4]:

Built into every contract to a major provider will be the underlying need to deliver a significant return on investment

CRESC [the Centre for Research on Socio-Cultural Change] found that big care providers expect to offer 11% returns to investors (including costly debt repayments which often return to the parent operating company). The business models of the largest five residential care chain companies in the UK offer returns to investors that account for as much as 29p in every £1 of their costs – the second biggest drain on expenditure after wages.

The care ‘market’ is increasingly consolidating towards such providers. As of 2015, nearly 20% of all care beds were provided by the ‘big four’ care companies – Four Seasons, Bupa Care Homes, HC-One Ltd, and Barchester Healthcare. They are gradually increasing their market share – buying up small chains and taking over provision from family-owned homes. (p12) But now the care market is in crisis because the government cuts in local authority budgets have squeezed the flow of profits to the care businesses. More than 400 care home operators have collapsed in the last five years, including over 100 in 2018 (Guardian 12 March 2019).

Insourcing will be difficult as the social care market is highly fragmented. As Bob Hudson says [3]:

There is no compact adult social care service that can be easily repatriated into public sector ownership. Rather the sector is characterised by many fragmented, competing providers. The care home sector supports round 410,000 residents across 11,300 homes from 5500 different providers (Competition and Markets Authority, 2017). The situation in home care is even more diverse with almost 900,000 people receiving help from over 10,000 regulated providers. (2018, pp1-2)

After a detailed seven-page Birmingham case-study of the privatised care industry, Richard Hatcher ends, “One section of Birmingham Council’s Local Manifesto 2018-2022 is titled ‘A Rebirth of Municipal Socialism’. It promises, “We will re-state the case for the municipal provision of services in Birmingham, heralding a new age of municipal socialism. And the Labour council in Birmingham will lead by example, calling time on the misplaced notion that the private sector always trumps the public sector by adopting a policy of in-house preferred for all contracts”. That was published in March 2018, a year and a half ago.

He asks “Where are the detailed plans to put this policy into practice?” and recommends Birmingham City Council to publish detailed plans to bring its out-sourced social care services in-house, open the books and make public these and all its other out-sourcing contracts so there can be genuine public accountability – and specifically for social care, the biggest sector of the Council’s outsourcing.

References 

  1. The Labour Party (2019) Democratising Local Public Services: A Plan for Twenty-First Century Insourcing. http://labour.org.uk/wp-content/uploads/2019/07/Democratising-Local-Public-Services.pdf
  2. Bob Hudson (2016) ‘The failure of privatised adult social care in England: what is to be done?’, The Centre for Health and the Public Interest. https://chpi.org.uk/wp-content/uploads/2016/11/CHPI-SocialCare-Oct16-Proof01a.pdf
  3. Bob Hudson (n.d.) ‘Adult Social Care: An Irretrievable Outsourcing?’ https://www.healthcampaignstogether.com/pdf/Hudson%20Social%20Care%202018.pdf
  4. David Powell, New Economics Foundation, with Karen Leach and Karen McCarthy, Localise West Midlands (2017) Social Care as a Local Economic Solution for the West Midlands. https://neweconomics.org/uploads/files/West-Midlands-Social-Care-report.pdf
  5. Birmingham City Council website  (2018) ‘Care Homes and Supported Living 2018’. https://www.birmingham.gov.uk/directory/55/care_homes_home_support_and_supported_living/category/1069
  6. CorporateWatch (2016) The Home Care Business. https://corporatewatch.org/the-home-care-business/#__RefHeading___Toc2989_782775029
  7. The Labour Party (2017) Alternative Models of Ownership. https://labour.org.uk/wp-content/uploads/2017/10/Alternative-Models-of-Ownership.pdf
  8. The Labour Party (2018) Democratic Public Ownership. https://labour.org.uk/wp-content/uploads/2018/09/Democratic-public-ownership-consulation.pdf
  9. Richard Hatcher (July 2019) ‘Co-production, social care and participatory democracy’.  https://www.healthcampaignstogether.com/pdf/1907%2019%20RH%20co-production%20article%20v3.pdf In ‘Health Campaigns Together: The Debate over Social Care – New Additional Reading’ https://www.healthcampaignstogether.com/socialcare.php
  10. 10.‘Our Social Care System is Broken’. https://www.healthcampaignstogether.com/pdf/Social%20Care%20Leaflet%20draft%204%20final.pdf

 

 

 

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