The debate over the future of the UK's public services is trapped in a cycle of short-term point scoring as politicians of all colours chase headlines rather than face up to the challenges ahead, the CBI has warned today (Sunday).
The business group says that urgent action to restore the public finances to health will be needed by whichever party wins the next election, and that there must be far more honesty to stop people being misled over what the future holds.
In early extracts from its timely 2009 Public Services Survey, the CBI reports that 93 per cent of firms want politicians to look again at the size and cost of the public sector, with 91 per cent wanting to see a reduction in the size of central government and 67 per cent a reduction in local government.
The survey also reveals widespread business concern about public service modernisation, with 94 per cent of respondents saying they believe there will be no significant reforms between now and the general election, due by early June 2010. Ninety-one per cent of firms believe the impact of the recession means such action is needed now more than ever.
John Cridland, CBI deputy director-general, said: "The economy is set on what is clearly an unsustainable course, and yet many of our politicians are scurrying around the corridors of Westminster in rapt contemplation of tomorrow's headlines.
"While the expenses scandal needs to be resolved and constitutional reforms debated in time, these are a massive diversion when so many urgent policy decisions have to be agreed and implemented.
"The UK faces a fiscal deficit never before seen in peacetime, yet the war between political parties is not resulting in any proper answers as to how this will be addressed.
"We need an honest discussion about what sort of public services we want and who should deliver them - and how best to maintain service quality.
"Whichever political party wins the next election needs to secure a mandate for radical action. Otherwise the country faces an uncertain and uncomfortable future."
The new CBI survey also shows that 81 per cent of firms think much of the extra government expenditure on public services over the last decade has not resulted in service improvement.
Office for National Statistics figures released this week revealed that between 1997 and 2007, productivity in the public sector fell 3.2 per cent, at an average fall of 0.3 per cent a year, while in the wider economy it rose between 2 per cent and 2.5 per cent a year.
John Cridland said: Business does not believe the fundamental issue of how public services are delivered has been dealt with.
"An additional £871bn has been pumped into the system since 1997. On the face of it, these extra billions have not resulted in a step change in the quality of services.
"Like it or not, we have to squeeze more out of what is already being spent and look for new and innovative ways to give people the services they want at a price UK plc can afford."
Asked what could help improve the quality and value for money offered by the UK's public services, 70 per cent said more use of competition between suppliers, 57 per cent said less public spending and 55 per cent said fewer central targets.
Firms were unimpressed with previous reforms, however, with only eight per cent saying they are satisfied with the government's progress on these to date.
When asked where there should be spending restraint and greater efficiency, central government (91 per cent), local government (67 per cent) and work and pensions, including welfare (54 per cent) came out top. Reductions in criminal justice (11 per cent), transport (10 per cent) and education (seven per cent) were the least popular target areas.
John Cridland added: "All political parties need to come clean about the position the country finds itself in and move the debate on. The political winners will be those who show a firm grasp of the financial reality and have the courage to make changes."