Allison Ogden-Newton
George Osborne has announced that the government would be consulting the public on cuts. Some, like Lord Lawson see this as a cynical PR ploy but I am interested in the idea. The reality is a decision between what we need and what we can't live without, but asking people what they think is always a good idea as long as you do it within a clear framework and you're prepared to not like what you hear.
But can we choose between the things we love, our old or our young? What drives these decisions? Cost? Need? A Facebook campaign? The latter worked for Rage Against The Machine last Christmas, why not the local library?
I believe there is a better approach, one that could make the process transparent and fairer and significantly encourage growth rather than decline.
That is to introduce the concept of social impact measurement across all of government. Using agreed criteria, departments could assess not just the cost but the social impact of the work they do. What is the environmental impact? How have they improved people's life chances and viability?
In short, they must measure and demonstrate the impact of their spending.
Following up on the chancellor's commitment, Cabinet Office minister Francis Maude spoke recently of making sure public services become answerable to those that use them. Social impact measurement would make this possible. In line with the coalition's creation of the Office of Budget Responsibility, there is clear scope to embed impact measurement in the assessment of the true value of public services - both to the people that use them and the wider communities in which these services operate.
By developing a clear, imaginative and light-touch framework for measurement, data can be captured across different projects and services. This would add a sophistication to the government's analysis of public services and enable them to provide long-term value for money for taxpayers.
Economic predicament
Our current economic predicament allows us the chance for a culture change. For too long, the government have commissioned and supplied services, evaluating their own performance along the way, telling us, without fail, how well they were doing. Now others will have a go, but not before the budgets are cut and the extent of the challenge is deepened.
Thinking in the existing silos is a major pitfall for any government – especially in an era of receding state spending. Using social impact measurement as part of the tendering process will allow central and local government – as well as, crucially, the public – to ensure that every last bit of funding is spent with the absolute maximum return on the tax payer's investment.
There is a fantastic opportunity here to encourage socially responsible entrepreneurship as the engine of our economic recovery. Social impact measurement reports create the platform to use the difficult fiscal climate as a catalyst for social engineering at its best. Without it, the government will make ill advised decisions which will inevitably lead to families and communities losing out - Sophie's choice rather than social reformation.
Allison Ogden-Newton is the chief executive of Social Enterprise London
From Bubb's Blog
From Whitehall Watch
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