GOVERNMENT-ECONOMY

THE Left is hysterical after Donald Trump appointed Elon Musk to head up a new US Department of Government Efficiency.

The Tesla billionaire will try to radically shrink the inefficient state, slash red tape, and cut trillions of dollars of wasteful spending.

Never has the intellectual divide between political leaders on each side of the Atlantic been greater.

And nothing better symbolises this chasm separating Keir Starmer’s Labour and Donald Trump’s Republicans than Trump’s choice of hi-tech billionaire Elon Musk to be his efficiency tsar.

Since taking office in July, the Labour Party have been intent on expanding the bloated British state. You just need to look at the details of the eye-watering tax hike of £40billion in the Budget, the huge injection of £22.4billion into the NHS, and the creation of additional quangos.

The contrast couldn’t be any starker. Not only has Mr Trump tasked Musk but also appointed pharma and tech pioneer Vivek Ramaswamy, to head a new Department of Government Efficiency (DoGE). Both have already trumpeted their ambition to wipe $2trillion from the cost of running the US federal government. Word has travelled at lightning pace as Mr Musk declared on his social media channel X that there was no threat to democracy but is to be a direct attack on bureaucracy and America’s big spending state.

Yet, in the UK the Labour Government is set on a course of adding to its spending rather than cutting costs. The British state now spends a mind-boggling 44 per cent – up 5 per cent since the pandemic – of the £2.7trillion annual output of the UK economy.

Rachel Reeves, the Chancellor, a self-confessed admirer of the US, has an opportunity as head of the UK Treasury to follow suit and embrace a new world of efficiency. Just imagine the positive impact in the City if she decided to lay credible plans similar in proportion to those announced by Mr Trump.

There is no doubt that Britain is desperately in need of its own Elon Musk-type efficiency tsar. It would certainly change attitudes. If the US Department of Government Efficiency achieves $2trillion of savings without damaging outcomes, then the debate on the depth of public services will change at the next UK election.

Any efficiency here would start by dismantling Labour’s plans for new quangos and organisations which do little more than mimic bureaucracies and other government affiliations which already exist.

These include the new “Border Security Command” which is duplicating work done by the immigration and security services and the National Crime Agency; and “Skills England” which is doubling up on work being done by private sector trade organisations and trades unions.

The list goes on. Labour’s plans for an Industrial Strategy Council and a National Infrastructure and Service Transformation Authority, despite their elaborate and grandiose names, will simply add more red tape and wage bills, increasing the size of the state rather than improving productivity.

Across government, budgets have exploded over the last decade. The NHS which consumed £144billion in 2016 is now projected to cost £277billion in the current fiscal year. Education spending has climbed from £102billion to £146billion over the same period. The nation’s welfare bill has rocketed from £240billion to £379billion. And the Transport budget has gone from £29billion to £66billion. Staggering sums of money all round.

Still, no one can say that state services have improved – in fact, quite the reverse. Anyone seeking to claim “Pension Credit”, following the Chancellor’s brutal assault on the winter fuel allowance for pensioners, can testify for that.

If we had our own Musk to drive efficiency and better productivity in the public sector the red tape and bureaucracy would be peeled away without the unions being indulged. We were shown what could be achieved when, as Prime Minister, Boris Johnson appointed a vaccine tsar (Dame Kate Bingham) who harnessed the efficiency of the private sector to enable the NHS to produce Covid-19 vaccines in record time.

It says everything about Labour’s approach that British pharma giant AstraZeneca, which developed the Oxford Covid-19 vaccine, has just announced it is to plough a record £2.7billion of research and development expenditure into the US rather than the UK.

Only by having the willpower to challenge the inefficiency of the state will there be belief in it being shrunk to manageable levels.

That would create a more agile and productive nation. It is so needed.