Managerialism reformed? New labour and public sector management

This paper discusses the approach of "New Labour" to the managerialist changes introduced by the Conservatives into the British welfare state during the 1980s and 1990s. It argues that Labour has embraced these changes but has also sought to establish its own agenda of "reformed managerialism". The latter involves two key elements: changes in performance measurement in the Public sector seeking a more rounded approach; and reformed public sector markets combining "partnership" with competition. This agenda is discussed with respect to Labour policy on health and education. The reformed managerialism agenda is contrasted with "Old Labour" criticism of the welfare state "reforms" of the late 1980s which involved a rejection of market mechanisms as involving a questionable commercialization of public services. The shift from Old to New, Labour approaches to public sector management is traced and a critical analysis of the Labour government's approach is presented. This argues that New Labour's approach involves a series of policy tensions which could compromise the achievement of stated objectives. These involve potential contradictions between improved performance measurement and performance management; between promoting access to health care and the private finance initiative; and between maintaining a "diversity" in the education quasi-market and improving educational standards. These limitations of the the New Labour agenda on public sector management are related to the attempt to "reposition" the party in the spectrum of British Politics.