Feminism Feudalism anarchism Freedom of Information Functionalism Gender
Global Capitalism Globalisation Great Thinkers Habituation of the Nation Hellinistic Philosophy Historical Materialism
Human Freedom Human Rights Humanity Immorality Independent Thinking Industrial Revolution
Pedagogy of Revolution

Flow of Ideas: articles - The CBI and the Business Takeover of Schools

A Capital Friendly Culture for Further EducationA Capital Friendly Culture for Further Education
Academy ChainsAcademy Chains
After the Hillcole GroupAfter the Hillcole Group
Against What We Are WorthAgainst What We Are Worth
Ambassadors of Capital in SchoolsAmbassadors of Capital in Schools
An Educational Mansion House for BusinessAn Educational Mansion House for Business
Apprenticeship and the Use-value Aspect of Labour PowerApprenticeship and the Use-value Aspect of Labour Power
Artistic OutlookArtistic Outlook
Ayers Rocked In His Own UniverseAyers Rocked In His Own Universe
B GenerationB Generation
Bourdieu on CapitalBourdieu on Capital
Bourdieu on Cultural CapitalBourdieu on Cultural Capital
Bourdieu on Social CapitalBourdieu on Social Capital
Brown PFI MonsterBrown PFI Monster
Business Sponsorship of SchoolsBusiness Sponsorship of Schools
Business Takeover of Further EducationBusiness Takeover of Further Education
Cambridge University OccupationCambridge University Occupation
Caught in the Storm of CapitalCaught in the Storm of Capital
Co-payment in Hospitals and SchoolsCo-payment in Hospitals and Schools
Cold Hands and Quarter MoonCold Hands and Quarter Moon
Communitarianism for SchoolsCommunitarianism for Schools
Compulsory Consumption and Uni-NannyCompulsory Consumption and Uni-Nanny
Conforming Schools Conforming KidsConforming Schools Conforming Kids
Copy/South DossierCopy/South Dossier
Creating MonstersCreating Monsters
Creeping Privatisation in Higher EducationCreeping Privatisation in Higher Education
Critical MassCritical Mass
Critical Pedagogy and CapitalismCritical Pedagogy and Capitalism
Critical Space in EducationCritical Space in Education
Delivering E-LearningDelivering E-Learning
Digital Rights ManagementDigital Rights Management
DistillationDistillation
Dorothy L. SayersDorothy L. Sayers
Douglas Kennedy: best-selling novelistDouglas Kennedy: best-selling novelist
E-learning for Free at the BBCE-learning for Free at the BBC
Edison Schools in the UKEdison Schools in the UK
Education and Inspections Bill (2006)Education and Inspections Bill (2006)
Education As Culture MachineEducation As Culture Machine
Education FireworksEducation Fireworks
Education for DebtEducation for Debt
Education IncorporatedEducation Incorporated
Education Markets and Missing ProductsEducation Markets and Missing Products
Education RepetitionEducation Repetition
Education the HSBC WayEducation the HSBC Way
Education White PaperEducation White Paper
Education, Globalisation and the Learning SocietyEducation, Globalisation and the Learning Society
Employers and School LeaversEmployers and School Leavers
Evaluating Different Teaching MethodsEvaluating Different Teaching Methods
Everything Louder Than Everything ElseEverything Louder Than Everything Else
Finance and FearFinance and Fear
Five Endings of DesiresFive Endings of Desires
Foibles, Frolics and PhantasmsFoibles, Frolics and Phantasms
FreedomFreedom
FreewillFreewill
French New Wave CinemaFrench New Wave Cinema
Full Report Ruth Rikowski[a]s Book Launch for Globalisation, Information and LibrariesFull Report Ruth Rikowski's Book Launch for Globalisation, Information and Libraries
Gender and Spokesperson in Group Work IssuesGender and Spokesperson in Group Work Issues
Global TradingGlobal Trading
Globalisation and Education RevisitedGlobalisation and Education Revisited
Habituation of the NationHabituation of the Nation
Higher Education and Confused Employer SyndromeHigher Education and Confused Employer Syndrome
Hitchcock: classic auteurHitchcock: classic auteur
Human capital, the knowledge economy and businessHuman capital, the knowledge economy and business
In Retro GlideIn Retro Glide
In the Dentist[a]s ChairIn the Dentist's Chair
Kids in the Land of No DreamsKids in the Land of No Dreams
KM CritiqueKM Critique
Lazy Brit KidsLazy Brit Kids
Learning in the Earthworks of CapitalLearning in the Earthworks of Capital
Learning InvestmentsLearning Investments
Learning to the MaxLearning to the Max
Librarianship and Human RightsLibrarianship and Human Rights
Lifelong Learning and the Political Economy of ContainmentLifelong Learning and the Political Economy of Containment
LSBU StrategyLSBU Strategy
Marketisation of the Schools System in EnglandMarketisation of the Schools System in England
Marx and Education RevisitedMarx and Education Revisited
Marx and the Future of the HumanMarx and the Future of the Human
Marxism and Education RevisitedMarxism and Education Revisited
Marxist Educational Theory UnpluggedMarxist Educational Theory Unplugged
Maturity and FreedomMaturity and Freedom
McDonaldization and EducationMcDonaldization and Education
Michael JacksonMichael Jackson
Michele RobertsMichele Roberts
Miss Allison and Novel WritingMiss Allison and Novel Writing
Moneythought in Higher EducationMoneythought in Higher Education
Mrs Thatcher and Holes in the Kitchen FloorMrs Thatcher and Holes in the Kitchen Floor
Multiculturalism and Faith SchoolsMulticulturalism and Faith Schools
My Tony BlairMy Tony Blair
New Ideas in Ruth Rikowski[a]s Book - Part 1New Ideas in Ruth Rikowski's Book - Part 1
New Ideas in Ruth Rikowski[a]s Book - Part 2New Ideas in Ruth Rikowski's Book - Part 2
New Labour Policy for SchoolsNew Labour Policy for Schools
Nietzsche[a]s SchoolNietzsche's School
Nihilism and Educational ValuesNihilism and Educational Values
No Learner Left UnhassledNo Learner Left Unhassled
Notes on the Confessions of John DenhamNotes on the Confessions of John Denham
On Education for Its Own SakeOn Education for Its Own Sake
On Education StudiesOn Education Studies
On the Capitalisation of Schools in EnglandOn the Capitalisation of Schools in England
On Transhumanism and EducationOn Transhumanism and Education
Open AccessOpen Access
Outsourcing Public ServicesOutsourcing Public Services
Peter Wilby on School PrivatisationPeter Wilby on School Privatisation
Planet of the CapitorgPlanet of the Capitorg
PlatoPlato
Playgound Risks and Handcuffed KidsPlaygound Risks and Handcuffed Kids
Poems by Gregory RikowskiPoems by Gregory Rikowski
Poems by Victor RikowskiPoems by Victor Rikowski
Post-Fordism and SchoolsPost-Fordism and Schools
Post-Fordism in Primary SchoolsPost-Fordism in Primary Schools
Postmodern Dereliction in the Face of Neoliberal Education PolicyPostmodern Dereliction in the Face of Neoliberal Education Policy
PowerPointlessness in Higher EducationPowerPointlessness in Higher Education
Private Schools as CharitiesPrivate Schools as Charities
Privatisation of Schools in EnglandPrivatisation of Schools in England
Privatisation of Student DebtPrivatisation of Student Debt
Races in the Imperial WarRaces in the Imperial War
Readings for Teaching CourseReadings for Teaching Course
Recruitment and Labour PowerRecruitment and Labour Power
Revealed Recruitment Criteria through the Use-value Aspect of Labour-powerRevealed Recruitment Criteria through the Use-value Aspect of Labour-power
Robotic EthicsRobotic Ethics
Ruth Rikowski Updates (Archives)Ruth Rikowski Updates (Archives)
Ruth Rikowski Updates (Archives)Ruth Rikowski Updates (Archives)
School Fees and the 1944 Education ActSchool Fees and the 1944 Education Act
Schools: Building for BusinessSchools: Building for Business
Science Fiction Films and HorrorScience Fiction Films and Horror
Second Time as FarceSecond Time as Farce
Snowballs and Risk in SchoolsSnowballs and Risk in Schools
Social Contract Theory and Political ObligationsSocial Contract Theory and Political Obligations
Socialism is not DeadSocialism is not Dead
Speed of Life - Part OneSpeed of Life - Part One
Speed of Life - Part TwoSpeed of Life - Part Two
Stroppy Individuals and Oppositional Cultures in SchoolsStroppy Individuals and Oppositional Cultures in Schools
Sustainability Policy at London South Bank UniversitySustainability Policy at London South Bank University
Ten Points on Marx, Class and EducationTen Points on Marx, Class and Education
The Business of Becoming a Business for AcademiesThe Business of Becoming a Business for Academies
The Capitalisation of Schools - Federations and AcademiesThe Capitalisation of Schools - Federations and Academies
The CBI and the Business Takeover of SchoolsThe CBI and the Business Takeover of Schools
The Commodification of EducationThe Commodification of Education
The Education White Paper and the Marketisation of SchoolsThe Education White Paper and the Marketisation of Schools
The Evolution of Federations of SchoolsThe Evolution of Federations of Schools
The Last Parents EveningThe Last Parents Evening
The New Japanisation of SchoolsThe New Japanisation of Schools
The Profit Virus - The Business Takeover of SchoolsThe Profit Virus - The Business Takeover of Schools
The Standards Language-game for Schools in EnglandThe Standards Language-game for Schools in England
The Which Blair ProjectThe Which Blair Project
Three Types of Apprenticeship - Three Forms of MasteryThree Types of Apprenticeship - Three Forms of Mastery
Tony and Caroline BennTony and Caroline Benn
Tony Benn: Letters to GrandchildrenTony Benn: Letters to Grandchildren
TransportTransport
Turney[a]s and PPUTurney's and PPU
Uninspiring TowersUninspiring Towers
Universe of Capital and My SpaceUniverse of Capital and My Space
Universities in a Neoliberal WorldUniversities in a Neoliberal World
Utopia and EducationUtopia and Education
What Can Nietzsche Teach YaWhat Can Nietzsche Teach Ya
When Bullies Roam the SchoolWhen Bullies Roam the School
When the Bowers BreakWhen the Bowers Break
Why Employers Can[a]t Ever Get What They WantWhy Employers Can't Ever Get What They Want
Will Hutton and His E-FossWill Hutton and His E-Foss
Wolf on Marx Without SparksWolf on Marx Without Sparks
Women in World WarsWomen in World Wars






Chandos Book Publishing

The Confederation of British Industry and the Business Takeover of Schools



A paper produced for The Flow of Ideas, 3rd June 2007

Glenn Rikowski, London


Introduction

The new service delivery model advocated by the Confederation of British Industry (CBI) implies that the business takeover of schools is speeded up and becomes a more general phenomenon. The business takeover of schools involves companies running schools, education services in schools, various layers of school management or allied schools services (e.g. school improvement, and equal opportunities) on a contract with the aim of making a profit [1]. The CBI is worried about what Gordon Brown might do regarding the continuation of neoliberal policies in education and other public services, though I suspect that this is undue concern. What is this ‘new model’ of public service provision the CBI has in view?


The CBI Vision for Public Services

Certainly, the CBI appreciated the direction the Blair regime took public services in the UK. Richard Lambert, CBI Director-General, noted recently that:

“Before he became Prime Minister, Tony Blair used to say that although he didn’t expect business to love a Labour Government, has was determined that the relationship should not be one of fear and loathing – as had been the case in the 1980s and early 1990s. He has succeeded in this goal, and moved the party firmly away from the wealth destroying policies of the past. More broadly, he has started a process of badly needed reforms in the public services, but it’s been a case of too little, too late. As a result, business people feel that much of the massive increase in public spending over recent years has been wasted” (in CBI 2007a).

So basically: ‘could do better’, for Blair on public services, which translates mainly into ‘could do more and could do faster’. This assessment on the Blair record for public services came a few days after the CBI published its ‘Five-Point Plan for Radical Transformation of Public Services’ (CBI, 2007b). It is the first two reforms that suggested reforms that are most significant in terms of the discussion here. These are:

* The government should turn from being a provider of public services to a commissioner, and

* More competition and markets should be introduced into service provision (CBI, 2007b, p.1).

The implications for schools are that business play a greater role as providers of educational services in schools within a system where competition and markets predominate. The role of Local Authorities (LAs) would be to commission these services: run competitive tendering processes, assess the quality of bids, make decisions on these and negotiate contracts. LAs would have a role in monitoring the performance of businesses running schools services (terminating contracts where performance fell short), providing information to bidders and ensuring a ‘level playing field’ in the bidding competition, and providing data to public to hit the community accountability agenda also advocated by the CBI (in 2007c). The legislative framework for this would need to be developed, but the outcome would be that companies would play an increased role in running schools for profit. The CBI also sees a more significant role for voluntary organisation (charities, foundations) and also social enterprises too. The CBI model of public service delivery is summarised thus:

“Under this model, the government is responsible for defining [outcomes], commissioning and funding core public services, overseeing the balance of spending, assessing needs and monitoring the quality of delivery” (CBI, 2007c, p.34).

That LAs would have little or no role in running schools directly is precluded on the basis of the following principle enunciated by the CBI:

“In the creation of public service markets, government must draw a clear distinction between commissioning and providing services” (CBI, 2007c, p.35).

Hence, in situations where LAs were still running schools this distinction would be compromised. The CBI fear that where LAs are providers as well as commissioners of educational services and other public services then the temptation to rig the game and award contracts to their own providers might prevail. This is rich given that capital spending bids are typically assessed on foundations that favour Private Finance Initiative (PFI) proposals (see Whitfield, 2006). The CBI argues that the government ‘must develop a policy framework to ensure a level playing field and fair procurement process’ (CBI, 2007c, p.35). This should extend to ‘back office services’ which should be taken out of expensive city centre sites. Indeed, there is no reason why these may be ‘even in the UK at all’ (Ibid.). The spectre of LA administrative services being overseas (as with many Internet service providers) hardly sits well with the CBI’s pledge to ensure that local services become more responsive to local citizens (see CBI, 2007, pp.34-35). The CBI is obsessed to ensuring that private sector bidders are treated fairly:

“To often, the way a market is structured means providers from the public sector compete with an unfair advantage over their private and voluntary sector competitors; but sometimes the situation is also reversed” (CBI, 2007d, p.1).

The CBI could had added ‘especially in regard to the PFI’ to this last point, which it wants to see expanded substantially, and where private operators have a built-in advantage in the bidding process (Whitfield, 2006).


Shape-Shifters and Place-Shapers

The CBI has developed a philosophy of “place-shaping” for LAs. According to Neil Bentley, CBI Director of Public Services, there are ‘four key things which are central’ to this place-shaping philosophy which it wants the government to foist on LAs. These are:

1. A readiness to accept a role as service commissioners
2. Commitment to stimulating local markets
3. A willingness to embrace new ways of working, and
4. Recognition of the need to develop the skills and capabilities required to manage contracts (Bentley, 2007, p.4).

Bentley goes on to give examples where LAs are actually adhering to elements of this philosophy. In an earlier speech, Richard Lambert pointed towards some of the perceived obstacles to LAs embracing this kind of philosophy:

“Opponents of reform still man the barricades against the march of progress. Populist claims can still strike a chord, and the reputation of business often suffers when it does something as apparently unforgivable as making a profit” (Lambert, 2007, p.5).

He went to note the public distaste for profit; not surprising with some banks posting record profits whilst running down core services and with interest rates rising. Lambert also bemoaned the effects of ‘high-profile business failures’ too on the public perception of business, not naming Enron, of course. But he switches from this moaning and griping to the following rallying cry: “We must resist those who claim that the profit motive and public services do not mix” (Lambert, 2007, p.5). As unpaid labour, profit mixes very well with the interests of capital indeed – especially in public services in the process of capitalisation – and if state revenue can be transformed into profit, then all the better for our idealists of the rip-off. John Cridland, CBI Deputy Director-General, even had the gall to argue that the CBI’s new model for services delivery could have positive consequences for social justice (2007, p.5) – without providing any evidence for this.


It Really Does Work for Schools?

In a speech to a Barnardo’s Conference last December, Neil Bentley argued that there was evidence that the CBI’s developing model of services delivery could work for schools. He noted that:

“The 1998 Education Act gave government the power to intervene in failing LEAs. As a result, nine interventions were made [2]. In these outsourced LEAs, improvements have been impressive: the pass rate for five GCSE’s as grades A*-C has risen at three times the national average since 2000” (Bentley, 2006, p.6).

The implication is clear in the light of the CBI’s new model of services delivery and its “place-shaping” philosophy: outsourcing schools and educational services works [3]. From the CBI perspective, Gordon Brown’s new government will need to respond to this message on its business agenda for schools. My guess is that he and his government will so respond, but not at the pace the CBI and education business hopes for.


Notes:
[1] For more clarification regarding what I mean by the ‘business takeover of schools’ see Rikowski (2006).
[2] The running of nine LEAs which were contacted out to an array of for-profit providers.
[3] The CBI published a report in early 2005 (CBI, 2005) that apparently indicated that the nine outsourced LEAs were doing better than the national average. However, Farnsworth’s (2006) groundbreaking research on the results on the nine outsourced LEAs throws doubt on the CBI’s hyped claims regarding their success.


References

Bentley. N. (2006) The Role of the Private Sector in Children’s Services, Speech by Neil Bentley, Director of the CBI Public Services Directorate, to the Barnardo’s Conference, ‘Commissioning Children’s Services, Moving Forward’, 14th December, online at:
http://www.cbi.org.uk/pdf/pppnb141206.pdf

Bentley, N. (2007) Improving Public Services: Commissioning from a range of service providers to meet the place-shaping agenda, Speech to the ‘Local Government Chronicle – Implementing the Lyons Inquiry’ Conference by Neil Bentley, Confederation of British Industry Director of Public Services, 16th May, online at:
http://www.cbi.org.uk/pdf/pppnb160407.pdf

CBI (2005) The Business of Education Improvement, London: Confederation of British Industry.

CBI (2007a) Tony Blair Won Business Trust as Prime Minister, but Public Service Reform is Too Little, Too Late, News Release, Confederation of British Industry, 10th May, online at:
http://www.cbi.org.uk/ndbs/press.nsf/0363c1f07c6ca12a8025671c00381cc7/dfe8206b08420

CBI (2007b) CBI Publishes Five-Point Plan for Radical Transformation of Public Services, News Release, Confederation of British Industry, online at:
http://www.cbi.org.uk/ndbs/press.nsf/awprdate?openview&start=1&Count=30&Expand=1#1

CBI (2007c) The 2007 Comprehensive Spending Review, A submission by the Confederation of British Industry, May, London: CBI.

CBI (2007d) Competitive neutrality in public services markets, Confederation of British Industry Business Summaries, 29th May, online at:
http://www.cbi.org.uk/ndbs/cbi_bss.nsf/actualwebcat?OpenView&Start=1&Count=100&Expand=30#30

Cridland, J. (2007) Next steps: priorities for improving public services, a speech by John Cridland, Confederation of British Industry Deputy Director-General, CBI Public Services Forum, 16th May, online at:
http://www.cbi.org.uk/pdf/pppjc160507.pdf

Farnsworth, K, (2006) Business in education: a reassessment of the contribution of outsourcing to LEA performance, Journal of Education Policy, Vol.21 No.4, pp.485-496.

Lambert, R. (2007) Efficiency, Innovation and Public Service Delivery, Speech by Richard Lambert, Confederation of British Industry Director-General, to the CBI Public Services Summit, 24th January, online:
http://www.cbi.org.uk/pdf/ppprl240107.pdf

Rikowski, G. (2006) Rikowski, G. (2006) On the Capitalisation of Schools in England, Education Studies, School of Education, University of Northampton, 1st November:
http://www.flowideas.co.uk/?page=articles&sub=On%20the%20Capitalisation%20of%20Schools%20in%20England

Whitfield, D. (2006) New Labour’s Attack on Public Services, Nottingham: Spokesman Books.



Print Friendly - Print Friendly with links
Anti-Imperialist
 © Copyright, Flow of Ideas, Ruth Rikowski and Glenn Rikowski
current date time:
Capital and Class
Website Design and Coding by Digo PC
Site optimisation by Bytec Solutions
Free-thought Global Family Government
Higher Education Human Progress Idealism
Immorality Income Generation Indulgence
Injustice Intellectual Development Knowledge Management

Valid CSS!