Davy Jones Consultancy

What a seminal moment !
The extraordinary public reaction to the revelations on MP's expenses repeats the public disgust at the incompetence, greed and the sheer immorality of the bankers. People have lost faith in the political elite - bankers and politicians have joined journalists and estate agents as figures of contempt.

But more than that, it reflects a deep-seated revulsion at how society has been run (and the system milked) over the last 20 years - unbridled markets, excessive consumption and (some) politicians trying to get a piece of the action. Remember Peter Mandelson was "intensely relaxed about people becoming filthy rich". The public are intensely disgusted by them. Potentially this popular mood could lead to radical changes with people more open than for a generation to ideas of doing things completely differently. Good.

Overhauling politics
We should start with the political system: Proportional Representation for national and local elections is essential to make the whole democratic system fairer. We need systems for local electors to be able to recall and get rid of their MPs and councillors. The unelected House of Lords should be abolished. MPs' salaries should be tied in some way to be proportional to the average wage and pension levels. And we need to break the grip of the party machines by making it much easier for individuals to stand for election locally and nationally and ending the party "whipping" system.

Rebalancing the economy
Now for the economy: abolish all tax havens for companies and tax avoidance schemes for the rich. If some threaten to leave the country, buy them a one-way ticket anywhere they want to go and take away their British passports - good riddance. Let's have a maximum wage (including in sport and entertainment) and a guaranteed minimum income for all. We need complete transparency for how the banks operate and for individual taxation and remuneration - we should publish everyone's tax returns online as they do in Norway.

Oh and saving the planet, please...
And last but not least, we need to rethink the wasteful consumption of our planet's slender resources - which is intimately connected to the whole shameful culture of excess that has brought down the bankers and politicians. We need a statutory duty on all public agencies to promote the long-term sustainability of their local communities. Local public services have to put reshaping local communities to be low carbon at the very top of their agenda. As for me, I'm voting Green in the forthcoming elections. I think many more will join me.

The economic crisis is having unexpected effects - the previously impossible may suddenly become probable. The beauty of these rare moments of crisis is that people become liberated from "old thinking" and new ideas can prosper.

Already Essex council has set up its own bank to provide loans to local businesses. Others may follow their lead. Maybe the next thing will be local authorities issuing bonds for people to invest in socially and environmentally responsible projects.

Others are using the provisions of the new Sustainable Communities Act to seek to take over the local fire and rescue service (Windsor & Maidenhead council) or to give the council the powers of an integrated transport authority (Cambridge). How long before a council asks to commission all local services?

New thinking in Government circles too
And now long comes efficiency guru, Michael Bichard, with a report accompanying the Budget which includes a fascinating section called "local incentives and empowerment". This calls for an unprecedented integration of local services and finances, greatly strengthened Local Strategic Partnerships, and proposes to allow one service to invest in the services of another to reduce its own costs over time. It also argues the case for local services to harness the valuable insight of their staff to reconfigure local services. Reports suggest that Conservative councillors favour a new single grant for all local public services to be spent locally as appropriate, free of any Government ring-fencing. All good stuff.

But there is a logic to further strengthening Local Strategic Partnerships and integrating local services. It will inevitably reinforce the calls for greater accountability of all the providers. At present, only local councils are directly accountable at the ballot box. The police, health and other bodies remain largely unaccountable. This is unsustainable.

Greater accountability must follow greater integration
I have argued before on this blog for electing Local Strategic Partnerships to be responsible for running all local services. The Local Government Information Unit has argued for a single commissioning body for all local services. Merging management, finances, buildings and functions across traditionally separate organisations like councils, Primary Care Trusts and police forces - in the name of efficiency ! -is just one stop away from merging accountabilities. Something will have to give !