The Coalition has to demonstrate that its purpose in government is not simply to cut public debt and rein in spending, but to govern better for less. George Osborne opened his remarks today by outlining what he described as the principles governing his spending review: public service reform, 'fairness' (defined as 'we're all in this together') and promoting economic growth.
But missing from this list was the overriding principle which might have been expected to set the basis for the whole exercise: that increasing government spending on services is not inherently virtuous. Perhaps the Chancellor felt that this would be to state the obvious, and he must be commended for sticking to (most) of his Budget plans and for reasserting his determination to deal with the deficit and get spending back down to 2008 levels. But his failure to remind his audience that more public spending does not = better outcomes (as ten years of Labour profligacy comprehensively proved) meant that there were some worrying inconsistencies in the review.
Given that the cuts are also hugely variable across departments, these inconsistencies add up to a very confusing message. Why should we commend as "good" the decision to inflate the already-massive spend on the NHS, when we see prison places being slashed through lack of funds? It's very hard to discern a principle here. And since Sure Start has been proved a colossal waste of money, failing the most vulnerable children, why continue to fund it?
Most controversially of all, if the government believes that working families should keep more of their earnings (to spend more effectively than government can) then why means-test child benefit - the only remaining recognition in the tax system of the cost of raising a family - in order to preserve free bus rides and winter fuel payments to well-off over 60s?
If you believe in the general principle that money is better spent by individuals on their own behalf and worse spent by government in their name, then you will, like me, have been rather disappointed today.
