Maybe Mark is right and inside Clegg there is a slash and burn tax cutter struggling to come out (it certainly seems like that at times), but the idea that saving money is a preserve of classical liberal/libertarians is bunk.
Way back in January I was the rapporteur for a session at the party’s policy conference where we discussed tax and spend. There didn’t appear to be many classical liberals sitting around the table with me but one of the things that exercised us all was how to make pledges to save spending that sound authentic rather than, to coin a cliche, the usual nonsense about cutting paperclips. It ended up forming one of the main things I ended up reporting back. It was just a brainstorming session, but it generated a lot of good ideas:
A said he was sceptical about efficiency savings, citing the Gershon Review and the James Review as ineffective attempts to do this.
B pointed out that the UK government spents £123bn per year on quangoes – the savings could come out of that. He suggested scrapping pay to sit on quangoes (although C pointed out that that would mean that only the wealthy would be able to afford to sit on boards).
He suggested that the current civil service encourages people to manage as much staff as possible. He suggested giving civil servants “financial incentives to do themselves out of a job.” Civil servants who managed to come up with money saving ideas should be rewarded with a proportion of the money they had managed to save. This idea seemed to enjoy broad support from within the group.
D said that, having worked in the public sector, she was disgusted by the level of waste she had seen. Too much pointless paperwork. She called for front line workforce to be “empowered.”
E was concerned that money saving measures would lead to redundancies, but the general view was that this would free up money that could be passed on a tax cuts (or spent differently).
F suggested more extensive use of the Sustainable Communities Act “right to know” how public bodies spend money within each local authority.
I like to think that our groups’ call for giving civil servants incentives to do themselves out of a job may have helped pave the way for In The Know, although of course I have no way of knowing if this submission was actually read by anyone rather than quietly shelved.