John Redwood's Diary
Incisive and topical campaigns and commentary on today's issues and tomorrow's problems. Promoted by John Redwood 152 Grosvenor Road SW1V 3JL

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The by elections

Knowing some  of you will want to talk about the by elections, here is your opportunity. Each of the three parties won one. They showed continuing poor support for Conservatives, no love for a Labour replacement, and anger at Mayor Kahn’s anti motorist policies. They show Lib Dem’s with very low national poll figures can pull off the odd  by election win. A highly subsidised investment in the West country did not impress voters there.

The UK’s public sector productivity problem

In an age of digital investment, artificial intelligence, smart phone activity and other leaps forward in productivity from technology, you would expect the UK public services to have had a good 25 years achieving more from its workforce thanks to investment and modernisation. Instead the Office of National Statistics reports that public sector productivity by the end of last year was lower than 25 years ago, at a time when the private sector had continued to show reasonable annual growth. In the whole period 1997-2019 the one fifth of the UK economy that is public services managed growth of just 3.7% in productivity. In 2020 productivity fell 13.3% thanks to lockdowns. In the following two years when the private sector made a full recovery from covid the public sector showed a rise of 7.3% in productivity in 2021 and of 1.9% in 2022, leaving it 5.2% below 2019 levels, and 1.7% below 1997.

UK public services are very labour intensive. We all want plenty of great teachers, good doctors and nurses and well trained uniformed police and defence  personnel to take care of us and protect us. Behind them lie large back offices with people giving the front line professionals support. In these areas more can be done by computer and by organising workloads and shifts well. Back up staff can keep more of the records and handle more of the administration to get the best out of the public facing staff. In too many areas management imposes a wide range of duties, checks and forms on staff which can get in the way of undertaking the day job instead of supporting its better performance.

The Chief Secretary to the Treasury has been put in charge of trying to cut through the complexities and overhead costs to deliver just that amount of administrative support and good planning that a successful service needs. He needs to do a lot to improve management performance especially in the NHS where huge sums of additional spending have been released without a proportionate increase in output. Your thoughts on how this can be achieved would be of interest.

Cutting CO2 , raising more tax revenue and cutting imports – why we should get out more of our own oil and gas

Yesterday I met some experts on energy and supply chains. They told me that the official figures implying there would be twice as much CO 2 if we import LNG in place of domestic North Sea gas down a pipe was a big underestimate by the government. If you take into account the different levels of emissions in extracting the gas, in compressing it, in transporting it as a cold liquid and then converting it back it could as much as seven times as much CO 2 is produced by all these processes. Those who argue we must keep our own gas in the ground to speed net zero are wrong – it would delay our road as we would have to import the gas we did mot produce for the rest of this decade at least. There is no way we will have enough people with electric heating or electric cars by 2030 or nearly enough grid capacity to power them to do without much of the oil and gas we currently need to stay warm and to get about.

The investment task to replace all the current oil and gas based activities and put in enough reliable electrical power is colossal. People wanting to put in new windfarms are  being told there is a queue into the next decade to get access to grid to carry extra renewable power to users at the times when renewable would be available. The Grid is only just considering how to expand, which it would need to do by a factor of 5 or more by 2050 to take out our current dependence on gas heating, gas industrial processes, and petrol, diesel and  aviation  spirit for transport. It would also need much enhanced electrical cable capacity under every street to provide enough power to each electrically heated home with an electric car to recharge.

The UK needs to improve our energy security and self sufficiency. Being reliant on imports by pipe and wire from a continent short of energy and recovering from the need to end its dependence on Russian fossil fuels, we could run out of energy at crucial times. We always used to be self sufficient. We have a good mixture of natural resources to provide  more oil and gas, wind power, nuclear and the rest we will need. To have a successful economy with well paid ,jobs we need more reliable and affordable power. Letting the market work with less interruption would help bring this about mainly with private sector investment capital.

My Interventions in the Draft Postal Packets (Miscellaneous Amendments) Regulations 2023 (2)

My Interventions in the Draft Postal Packets (Miscellaneous Amendments) Regulations 2023 (3)

My Interventions in the Draft Postal Packets (Miscellaneous Amendments) Regulations 2023 (4)

King’s speech 3

The Speech needs to tackle problems with restoring productivity in public services, encouraging smarter working with a happier and better rewarded workforce.

1. Repeal the independent management of NHS England, as everyone still blames Ministers for management failings.

2. Reduce layers of management in NHS and strengthen powers of Trust CEOs and Boards

3. Strengthen rights to free speech in universities and Colleges

4.Amend public procurement rules to give proper recognition to the tax and job contributions to UK made by UK based suppliers

5. Require Ministers to hold annual meetings with quangos to 1. Set objectives for the year ahead and agree budgets; 2 to review annual report and accounts; 3 to review performance.

6.Grant NHS patients the right to free treatment in the private sector if the NHS fails to deliver in a stated time

7 Block  loans to Councils wanting to make commercial investments given the big losses some of them are recording on past attempts at property and green ventures

8.  Review and consolidate government property holdings to cut costs and reduce dominance of expensive London

9.Cut energy use in public sector

10. Charge foreign visitors for using public services

The King’s speech 2

I repeat here some of my supply side measures to boost investment and increase the UK’s ability to grow, produce and make more at home. More domestic supply will boost tax revenue, lower the  deficit and help bring inflation down.

1. Postpone ban on new petrol and diesel cars to 2040  from 2030 to allow investment and continued use of existing factories.

2. Postpone the ban on new gas boilers for home heating

3. Cut Corporation tax to 12.5%

4. Switch wilding and sustainable farming grants to grants and loans to grow more food with more labour saving machinery

5. Issue licences to produce more oil and gas from known North Sea fields and reserves

6. Keep all existing fossil fuel power stations to help meet demand in periods of low wind and sun

7 End grants for anti motorist schemes that cause more delay and congestion on main roads

8. Put in more bypasses and roundabouts in place of more traffic lights and road restrictions

9. Amend Housing Bill to avoid losing more landlords

10. Remove 2017 and 2021 changes to IR 35 to foster more self employment

11 Raise VAT threshold for small business to £ 250,000

12.Get regulator to allow more reservoir capacity by water companies

13. Suspend carbon tax and emissions trading to cut energy costs for high energy using industries like steel

14. Auction government run rail franchises to get better service for lower subsidy

15. Sell Channel 4

16. Work with private sector  to complete roll out of fast broadband

 

 

My speech about reforming the NHS

The King’s speech

I hear the government is seeking good ideas for next year’s legislative programme. I will be setting out in a few blogs what a Conservative King’s Speech could look like. I urge the government to find things to do which will deliver more prosperity, freedom and happiness. They need to remember it is 5 million Conservative voters that the polls say they have put off in the latest surveys who they need to win back for the general election.

Let’s start with the Foreign and Home offices.

1. Stop all overseas aid to any country with a nuclear weapons programme or with a defence budget greater than 2.5% of GDP. We should not be grant aiding rearmament by the back door.
2. Allocate more of the Overseas Aid budget to meet first year set up costs of asylum seekers and economic migrants.

3.Renegotiate the Windsor Agreement so that the more important Good Friday Agreement can be restored, with Unionists returning to Stormont.

4. Tell the EU  that if they put a tariff on our cars exported to the EU for insufficient local content we will place one on their exports of cars to us.

5. Strengthen the small boats legislation by adding a notwithstanding clause to exclude further legal challenges

6 Intensify actions to arrest and prosecute people smugglers.

7 Return more foreign prisoners to their own countries.

8. Decriminalise non payment of tv licence fee

9. Raise income thresholds for economic migrants