Why Treating Public Services Like Startups Can Lead to Disaster
The Guardian•1 week ago•
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Why Treating Public Services Like Startups Can Lead to Disaster

Politics and Public Policy
publicservices
government
business
politics
accountability
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Summary:

  • Government's reliance on business leaders undermines public services.

  • Sir Philip Green's controversial past raises questions on his role in public spending reviews.

  • Comparing startups to public services is misguided and dangerous.

  • The private sector needs more competition to prevent exploitation.

  • Public services cannot operate like businesses due to their critical societal roles.

The Troubling Trend of Business Logic in Politics

A new government, anxious about its economic policies and polling, is turning to business leaders for guidance. Recently, Rachel Reeves instructed ministers to submit spending plans to corporate executives, including former bankers from Lloyds and Barclays. This reflects a pattern seen since David Cameron brought in Sir Philip Green as his efficiency guru in 2010, a choice that raised eyebrows due to Green's controversial business practices.

The Flaws in Business-Centric Governance

Sir Philip's review of public spending produced little of value and only served as a headline-grabber. His involvement was criticized due to his role in the collapse of BHS and the associated fallout regarding his tax affairs. This reliance on business figures undermines the credibility of public services, which should not operate under the same logic as profit-driven companies.

Political Insecurity and Its Consequences

Ministers often show a deferential attitude towards successful businesspeople, which can harm both political and public sector integrity. Historical examples include Gordon Brown praising bankers before the credit crisis and Tony Blair knighted Philip Green, who later faced parliamentary backlash.

Misguided Comparisons: Startups vs. Public Services

The suggestion that Whitehall should "act more like a startup" is fundamentally flawed. Unlike businesses like Facebook, which can afford to innovate recklessly, public services such as hospitals and schools must maintain high standards and reliability. The private sector is the one that needs more competition to combat issues like price gouging and profiteering.

The Real Impact of Business Logic on Public Services

Using the Green review as an excuse, the Conservative government has pushed for public services to do more with less, leading to a crisis in many areas. The consequences of treating public services like businesses are severe; when a brewery struggles, customers can choose alternatives, but when prisons overflow, it endangers public safety. Public services perform a critical role that cannot be equated to traditional business operations.

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