Compulsory Competitive Tendering And Local Government Financial Services: An Analysis Of The Views Of Local Government Accountants In The North West Of England

Between 1979 and 1997, successive Conservative governments sought to reduce the scale of public sector activity and to introduce competition in the provision of public sector services. A central feature of this policy was the introduction of compulsory competitive tendering (CCT). CCT was initially confined to blue collar services but, by means of the Local Government Act 1992, it was extended to white collar, professional services, including financial services. However, though potentially extremely significant, the support for and implications of such a policy are issues which have been inadequately researched. Because of this, research has been under-taken into financial services CCT and has included a questionnaire survey of 300 professionally qualified accountants employed in 17 local authorities in the North West of England, drawn from county councils, district councils and metropolitan authorities. The article presents the findings of the survey, with a particular focus on the views of accountants on CCT in general and financial services CCT in particular. In addition, it provides evidence that the CCT process, irrespective of views on CCT and its appropriateness for specific activities, has changed culture and attitudes in the case of local government finance professionals.     

CONTRACTORS' EXPERIENCE OF COMPULSORY COMPETITIVE TENDERING: A CASE STUDY OF CONTRACT CLEANERS IN THE NHS

Compulsory competitive tendering (CCT) has been an important instrument of Conservative government economic policy since 1979. Its effectiveness in generating cost-effective services depends on competition to supply the service in question.
The NHS domestic market is large and, prior to the introduction of CCT, promised to be profitable for contractors. Many contract cleaners with office cleaning experience entered. In the event the costs of entry were heavy, and the profit margins of established firms were reduced. When contracts have been awarded to firms, they tended to be to those with a track record. Many firms therefore withdrew; and the few that remained have profit margins in the NHS little different from those found elsewhere. Of more than by firms with a serious interest in entry, probably no more than a handful can have come out of the experience in net profit in the first seven years.
The experience of CCT in the market for NHS domestic services has shown that a degree of competition in the market can be achieved, arguably because of the presence of direct service organizations. Competition for this market, on the other hand, can be limited by the high costs of entry.     

Planning in the passenger transport executives∗

Abstract This article examines the use of Management Buy‐outs (MBOs) as a strategy for the reorganization of service provision by some local authorities in response to compulsory competitive tendering (CCT) under the 1988 Local Government Act. It looks at:

1. How MBOs fit in with the other patterns of change associated with CCT.

   The reasons why particular local authorities have sold service organizations to MBOs.
   The immediate and short term implications of MBOs.
   The longer term prospects for MBO companies in CCT service areas.
   The prospects for further MBOs being established.

     

Competition and Contracting in the Transition from CCT to Best Value: Towards a More Reflexive Regulation?

Following publication of the government’s proposals for a statutory framework of Best Value, and the introduction of regulations increasing the flexibility of CCT pending its abolition, this paper examines the relationship between the compulsory regime and its likely successor. First, the paper suggests that the Best Value frame-work is likely to impose a range of regulatory, monitoring and enforcement constraints similar in effect to the formal requirements that operate under CCT. Continuity with Conservative policy will be reinforced practically through transitional arrangements for the gradual abolition of CCT and the phased introduction of its replacement. Second, the paper argues that contracting is likely to continue to have a significant role under the new regime as the natural adjunct to the voluntary competitive processes that will be the preferred management tools for securing improvements in service performance. Open tendering and public-private sector partnership arrangements, both of which imply contractual governance, are given explicit priority in the consultation document over benchmarking, performance indicators and other comparative public management mechanisms. Third, the paper argues that local authorities are likely to want to retain and develop contracting arrangements that potentially permit a degree of control over service provision that might not be available were more radical service-providing alternatives to be adopted, involving the complete transfer of functions outside the public sector and/or their vesting in independent companies. Finally, the paper assesses the transition from CCT to Best Value from the theoretical perspective of responsive and reflexive regulation. Following a brief account of the reflexive failures of CCT, the paper argues that, although the Best Value framework is characterized by inherently reflexive processes involving self-review, consultation and standard-setting, its relative success is likely to depend ultimately both on the tightness with which legislation is drafted and on the manner of its practical interpretation, implementation and enforcement.     

The Role of Competition in Best Value: How Far Does it Differ from CCT?

This article investigates the role of ‘competition’ within Best Value (BV) and compares it with that of Compulsory Competitive Tendering (CCT). Utilising results of a survey of BV lead officers, the article reveals that ‘competition’ is not being used as widely as may have been expected. However, in terms of outcomes, services subject to BV seem to be at least as likely to be provided externally as would have been the case under CCT. Further analysis also considers the impact that party political control and service type have on the use and outcomes of competition.     

The impact of TUPE on compulsory competitive tendering: Evidence from employers

The transposing of the 1977 Acquired Rights Directive into UK law has resulted in prolonged uncertainty regarding whether its protection of terms and conditions of employment extends to workers transferred under compulsory competitive tendering (CCT). In this paper we examine briefly the origins and scope of the directive and the development of relevant case law. We then report the results of a survey of employers confirming the existence of widespread confusion over the legal position of transferred employees. We also provide evidence that terms and conditions of employment are commonly being revised following CCT transfers. Concentrating upon the responses of contractors we show that any experience of litigation tends to lead to a less favourable assessment of the overall success of CCT. We conclude by examining both the causes and consequences of the continuing legal confusion associated with CCT transfers and consider the policy implications of our findings.     

Conditional Cash Transfers,Adult Work Incentives,and Poverty

Conditional cash transfer (CCT) programmes aim to alleviate poverty through monetary and in-kind benefits, as well as reduce future incidence of poverty by encouraging investments in education, health and nutrition. The success of CCT programmes at reducing poverty depends on whether, and the extent to which, cash transfers affect adult work incentives. In this paper we examine whether the PROGRESA programme of Mexico affects adult participation in the labour market and overall adult leisure time, and we link these effects to the impact of the programme on poverty. Utilising the experimental design of PROGRESA's evaluation sample, we find that the programme does not have any significant effect on adult labour force participation and leisure time. Our findings on adult work incentives are reinforced further by the result that PROGRESA leads to a substantial reduction in poverty. The poverty reduction effects are stronger for the poverty gap and severity of poverty measures.     

The economic viability and stability of ‘capitalised family farming’: An analysis of agricultural decollectivisation in Peru

Abstract

The overall goal of this study is to examine if there is a dropout problem in rural China and to explore the effectiveness of a Conditional Cash Transfer (CCT) programme on the rate of dropping out. To meet this goal, we conduct a randomised controlled trial (RCT) to assess the impact of the CCT using a sample of the poorest 300 junior high school students in a nationally-designated poor county in Northwest China. We find that the annual dropout rate in the study county was 7.8 per cent and even higher, 13.3 per cent, among the children of poor households. We demonstrate that a CCT program reduces dropout by 60 per cent. The programme is most effective among students with poor academic performance, and likely more effective among girls and younger students.     

COMPULSORY COMPETITIVE TENDERING FOR LOCAL GOVERNMENT SERVICES: THE EXPERIENCES OF LOCAL AUTHORITIES IN THE NORTH OF ENGLAND 1988-1992

This article examines the response of a sample of local authorities in the North of England to the introduction of Compulsory Competitive Tendering (Cm) following the 1988 Local Government Act. It analyses the Organizational implications of CCT and highlights how officers, councillors and trade union representatives viewed the changing nature of management within local authorities in the period following the award of the first service contracts. In particular, it examines the different reactions to the development of a more commercial approach to the management of services and ends by assessing the specific impact of CCT in the context of other important changes in local government.     

The geopolitical economy of social policy in the Philippines: securitisation,emerging powers and multilateral policies

Recent geopolitical and economic changes have altered global social policy formation. The Bretton Woods multilateral development agencies (MDAs) have selectively incorporated ideas emerging from developing country states and decision makers, with a recent increased acceptance of social transfers as part of renewed efforts at poverty alleviation based on social risk management. There has been an instance in the use and promotion of conditional cash transfer (CCT) policies by MDAs. CCTs were a product of the emergence of a neo-structuralist welfare regime (understood as an ideal type) in Latin America – an attempt to reconcile neoliberal strategies of development with aspirations for guaranteed minimum incomes. The Bretton Woods and regional development bank MDAs have facilitated the adoption of CCTs in other developing countries, including the Phillipines. Here, a combination of actions by national political actors and MDAs has resulted in the implementation of a securitised and compliance-focused version of CCTs derived from the Colombian security state. Although poor Philippine households welcome income assistance, CCTs have acted to enforce further state monitoring without altering the national-based political and economic processes that replicate poverty.     

Housing and Council Tax Benefits Administration in England: A Long-Term Perspective on the Performance of the Local Government Delivery System

The Coalition government announced, in 2010, that between 2013 and the end of 2017 all existing claims to income-based welfare allowances, including housing benefit, would gradually move to the Universal Credit (DWP 2010). This article evaluates the performance of the Council Tax and Housing Benefits Administration Services under the current system for the delivery of these benefits since they were transferred fully to local authorities in 1993 up until December 2011. During this period the performance of local government has been influenced by four successive national delivery regimes, namely: Compulsory Competitive Tendering (CCT); Best Value; Comprehensive Performance Assessment (CPA) and Comprehensive Area Assessment (CAA). An earlier article (Murphy, P., Greenhalgh, K. and Jones, M., 2011. Comprehensive performance assessment and public services improvement in England – a case study of the benefits administration service in local government. Local Government Studies, 37 (6), pp. 579–599) examined the CPA period in detail and found a significant improvement in performance across all types of authorities in all parts of the country during this period. The current article complements this earlier analysis and provides a longer-term perspective on the performance of the benefits service between 1993 and December 2011. The findings of this article show that under CCT the performance of the system was poor, there were wide variations in individual local authority performance, with many acknowledged inadequacies in the system and unacceptably high levels of fraud. However, towards the end of CCT and in the subsequent Best Value period the antecedents of some of the tools and techniques subsequently used to drive improvement in the CPA era were either put in place or were being developed. The Best Value period itself did not show significant improvements in performance and it was not until many of the initiatives were refined, developed and applied within the CPA framework that sustained and significant improvements became evident. This overall improvement generally continued under the CAA although the previous trend of consistent reductions in the variation between authorities’ performance had changed between 2009–2010 and 2011–2012. It is too early to judge whether these latest trends will be maintained under the Coalition government’s localism regime.     

Bolsa Família and democracy in Brazil

The conditional cash transfer (CCT) programme Bolsa Família (Family Allowance), introduced in Brazil in 2003, is one of the largest such programmes in the world. Bolsa Família has played a role in the recent reduction of poverty and income inequality in Brazil. But what has been its impact on democracy? An assumption in the literature on social policy, derived from the European experience, is that targeted programmes such as Bolsa Família divide citizens, erode trust between citizens and between citizens and the state, and weaken democracy. This article challenges that assumption, showing that there is considerable evidence that Bolsa Família has strengthened the citizenship rights of the poor and enhanced democracy. The Brazilian experience suggests that, in highly unequal developing countries under conditions of 21st-century capitalism, the argument that targeted social programmes will inevitably undermine democracy is incorrect.     

Territorial upscaling of local governments: a variable-oriented approach to explaining variance among Western European countries

Local government systems change at varying speeds. While some countries have dramatically reduced the number of local governments during a short period of time, other countries have seen only incremental change or relative inertia. A number of explanations for structural change have been put forward in the comparative local government literature, but these explanations have to a small extent been tested empirically. This article uses statistical indicators to analyse changes in the local government systems in 17 Western European countries between 2004 and 2014. Some often-cited explanations for what drives structural change receive little support. Still, the article demonstrates that changes tend to occur in situations marked by different combinations of decentralisation, urbanisation, fiscal stress and a recent history of territorial upscaling.     

Fair Trade-Organic Coffee Cooperatives,Migration, and Secondary Schooling in Southern Mexico

We explore three trends in rural southern Mexico (Fair Trade coffee, migration, and conditional cash transfers) that could explain the rapid rise in education from 1995–2005 using survey data from 845 coffee farming households in Oaxaca and Chiapas, Mexico. Results from a household fixed-effects model show that household participation in a Fair Trade-organic cooperative contributed to about a 0.7 year increase in schooling for girls. US migration opportunities appear to have even stronger positive impacts on schooling for females. Although participation in Fair Trade-organic cooperatives appears also to have increased male schooling, increased migration opportunities have had an indeterminate effect for males.     

Planning,evaluation, and legislative capabilities

Virtually all examinations of governmental planning have been restricted to the executive branch. However, over the last fifty years, Congress has acquired a relatively sophisticated, though latent, planning capability which has greatly increased its potential for policy making that is both more anticipatory and more comprehensive. While the transformation of Congress from a quintessential liberal institution into an institution dominated by planning is certainly an unlikely prospect, the reforms of the 1970s, building on the reforms of 1946, have changed Congress significantly. These reforms have vastly expanded congressional sources of internal support, have created and enhanced external congressional support agencies, and have reorganized the internal structure of Congress. It is important to recognize the planning implications of each of the structural modifications, and grouping them all together as part of a grand congressional planning capability puts past reforms and proposals for future reforms in a new and enlightening perspective.     

Contemporary Russian nationalisms: the state,nationalist movements,and the shared space in between

For several years, various nationalist groups and the Russian state have been competing over nationalism as a political concept and for popular support to nationalist claims. This paper analyzes the relationship between the state and anti-government, ethnocentric nationalistic groups that gather annually in an event called “the Russian March.” Emphasis is on the change in that relationship that happened in 2014, when the state added efforts to channel and mobilize the nationalists to its previous repressive and controlling measures. The article conceptualizes the competition over the nationalist argument in contemporary Russia as a case of dissentful and consentful contention in hybrid regimes, and shows how the dissentful nationalists have been forced to make way for the more consentful ones. Until recently, the room for maneuver for the radical nationalists was relatively wide. The events in Ukraine, however, divided the nationalists, and since 2014 radical nationalists have faced increased state repression. At the same time, pro-government nationalist actors have strengthened, and new players have appeared in the field. These developments tell us not only about the Kremlin’s diminished tolerance for dissentful contention, but also about the importance of the nationalist argument in Russian politics today.     

Social Entrepreneurs and Social Inclusion: Building Local Capacity or Delivering National Priorities?

Abstract

Western governments have increasingly sought to tap the potential of the voluntary and community sectors in delivering neighborhood-based initiatives to combat social exclusion. The particular attributes claimed for the ‘third sector’ include closeness to the community and a capacity for flexibility and innovation. In-depth evaluation of the UK’s Neighbourhood Support Fund, a ‘flagship’ program designed to combat the social exclusion of disaffected young people living in deprived inner urban areas, demonstrates that to operate successfully in the current policy environment, community-based projects not only need these skills but must also acquire managerial capacity. In particular they have to be able meet the increasing demand from central government for detailed performance data. Successful community based projects therefore not only need to have the capacity for entrepreneurial activity but must now also have managerial skills not traditionally associated with the ‘not for profit’ organisations.     

Social Change and Interest in Family Planning in Ghana: an Exploratory Analysis

This article examines the ways that pastors have mobilised their religious followers to address the issue of HIV and AIDS in Ghana and Zambia. The work argues that successful pastors have utilised church organisational structures to support and empower their activities, they have framed HIV and AIDS mobilisation messages in a way that is acceptable to their congregants and to their broader societies, and they have capitalised on changing political opportunities, particularly those opportunities for collaboration with external actors such as donors and Western churches. The work situates the analysis in Zambia and Ghana, two countries that contrast in their HIV prevalence rates and the amount of donor attention and funding they have received for combating HIV and AIDS. The article asserts that while pastors have agency in the social mobilisation process, they are also affected by the broader social and cultural contexts in which they operate.     

Assessing Public Managers' Change-Oriented Behavior: Are Private Managers Caught in the Doldrums?

This article presents a concept and a measurement of managers' change-oriented behavior related to the initiation and implementation organizational change. It is argued that managers have an optimal potential for achieving organizational changes if they have the change-centered leadership style, are intuitive, recognize demands for change, and have power-motivated behavior. Public and private managers are significantly different in relation to change-oriented behavior based on data from 343 managers in two public organizations and one private. One result was unexpected: public managers are more change-oriented than managers in business organizations. As expected, there is no significant difference in change-oriented behavior among managers in public agencies. Possible explanations for these outcomes are presented.