Member News
By Martin Kornacki - 14th December 2009
Ken Clarke, the shadow secretary of state for business, innovation and skills, has said his party would cut public spending by "squeezing" salaries in the public sector, if elected next year.
Speaking at Westminster Explained's Coming Year in Parliament conference earlier this week Clarke said the Conservatives also planed to freeze public sector spending and did not rule out the possibility of increasing taxes.
During the event, at Methodist Central Hall in London, Clarke insisted efficiency savings could be made in the public sector by looking more closely at the deployment of frontline staff and what the country got from what he called the "huge number" of policemen and teachers.
Speaking about the administration of frontline services he said: "The type of management you need to achieve this is the type that will improve effectiveness; our approach has always been based essentially around competition and choice, by putting the ability to influence more things in the hands of the consumer like the parent or patient.
"We would look at a variety of providers, providing choice and competition, including private sector providers and contracting out – that is going to be very much the flavour for what we go in for."
He went on to say Tory plans for restructuring public services, despite including severe constraints on spending, would seek to avoid any negative impact on frontline workers.
And as part of a planned Conservative drive to reduce national debt Clarke said his party was "not so irresponsible as to commit ourselves not to raise taxation".
Tory plans aimed at helping struggling businesses recover could see corporation tax headline rate reduced to 25 per cent and the small business rate to 20 per cent if they won office next year. This could be achieved in Clarke’s view by "sweeping away" parts of the complex allowance and rebates system that had built up under the Labour government.
Speaking on a panel including the Treasury select committee chair, Labour MP John Mcfall, Clarke concluded that tackling national debt would need to remain the primary focus for any new government next year.
"Sadly the British situation is worse than any of our competitors and our debt to GDP ratio has been rising faster than any other major developed country," he said.
The event was sponsored by consultancy firm Mitie and green jobs organisation Groundwork
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