Perhaps the most striking aspect of Gordon Brown’s first Cabinet reshuffle was the reorganization of several government departments. It’s not the first major shake-up of the year – the Home Office was recently split – and such moves tend to prove very expensive, not to mention disruptive. So were Gordon’s changes sensible ones?
Well, slimming down the Department of Trade and Industry is certainly welcome (and long overdue). For years the DTI has had little to do with trade and an influence on industry that is mostly unhelpful. Indeed ‘Deterrent to Trade and Industry’ has often seemed a more appropriate name, so lets hope the new department (this time for Business, Enterprise and Regulatory Reform) will prove more successful. A concerted and sustained effort to reduce the regulatory burden on Britain’s businesses should be the enterprise secretary’s number one priority.
The DTI’s energy brief has now gone to the Department for the Environment. A move clearly designed to boost the new PM’s green credentials, it will also make the environment secretary a far more prominent figure in government – especially if they push ahead with plans for new generation of nuclear power stations. Nonetheless, it strikes me as a little risky. Energy policy is vital to the UK’s economic security and performance, and should not be dominated by the environmental agenda alone. It’s not hard to imagine an ideological attachment to renewable energy leading to serious economic misjudgements.
Meanwhile, science moves from the DTI to the Department for Innovations, Universities and Skills, one of two departments to be carved out of the old Department for Education. The other one is called the Department for Children, Schools and Families. Frankly, it would be better if neither of these departments existed at all. Skills are best left to the market – employers and individuals know far better what they need than central government. And it is government interference that has undermined schools, universities and families, and it’s a government stranglehold on funding that holds back science and innovation. An extra cabinet minister is unlikely to solve the problem.
Still, we can’t expect Gordon to realize that on his first day, can we?
From Adam Smith Institute
Tags: Libertarian, Politics, Liberty, Freedom