Attempts to help poor families snarled up in red tape

Oct 29 2009 by Adrian Pearson, The Journal

GOVERNMENT red tape has ruined any chance of using multi-million pound funds to bring real help to deprived North families, experts have claimed.

An in-depth look at how public sector cash is spent in the region has revealed thousands of officials in councils, schools and hospitals have effectively been forced to become better at meeting targets than creating real improvements.

A report by Labour-leaning think tank ippr North has revealed the region is good at following the strict checklist handed down by Government civil servants but is “not having any great impact” on the many families living in poverty.

Policy experts say the Government’s “one size fits all” approach is preventing the region from matching funds to where the real problems are.

Researchers at the think tank have shown that despite being handed record levels of cash, the region’s public sector bosses have failed to significantly improve life for many thousands in the North East, and will not do so until more decision making powers are handed over.

On issues such as life expectancy, entrance to further education, and unemployment the North East still lags behind other regions.

And despite decades of above average spending, the region still fails to match many national standards.

Last night Ed Cox, the director at ippr North, said the problem could be solved by giving greater freedom to spending chiefs.

“I don’t think there is necessarily a quick solution to this, but we can see that any solution must involve the Government having fewer targets for local authorities to meet.”

He added: “Given the amount of investment in public services in the North East, the fact that the region still lags behind other parts of the UK might suggest the money has been badly spent.

“In fact, the Commission found that the public sector was performing very well against the targets set for it. But this is part of the problem.”

Mr Cox yesterday met Treasury officials to put the case for continued investment in the North in the face of expected public sector spending cuts.

Ministers are handing over £8,177 per head each year to help close the North South divide, yet the commission has found little evidence to suggest the region has left behind its disadvantaged past.

The report stops short of blaming those who spend the cash and instead calls for an end to the red tape restricting what the region’s public sector can do.