Cameron Pushes On With Public Service Reform

David Cameron has outlined the Government's plans to open up public services to private providers.

The Prime Minister has published proposals to increase choice over a wide range of services including schools and health providers.

He has presented the shake-up as a "people power" revolution that will replace bureaucratic control with "more freedom, more choice and more local control" in a speech in London.

But trade unions say the proposals in the Open Public Services White Paper show ministers are planning a large-scale privatisation of public services - and risk returning to the "divisive" nature of the 1980s.

Wide-ranging powers for parish councils to take over services, a public "right to choose" enshrined in law and personal budgets for users to buy services from any provider are among the changes included in the consultation document.

It was due for publication in February, when Mr Cameron provoked union fury by promising a "presumption" that private providers could run all but the most sensitive public services.

The delay fuelled speculation about bitter fights within the Government over the major policy initiative, including reports that Mr Cameron's policy guru Steve Hilton came close to quitting.

But while the language may have been toned down, Mr Cameron has insisted he has in no way watered down his plans.

"I know there are those who thought we might be pulling back or losing heart for the task ahead," he said in the speech.

"So let me assure you of this: we are as committed to modernising our public services as we have ever been. I'm not going to make the mistakes of my predecessors - blocking reform, wasting opportunities and wasting time.

"This is a job that urgently needs to be done, and we are determined to see it through."

He has described public services as "the backbone of the country" but complain that they still operate with a "take-what-you're-given" philosophy that has failed sufficiently to close gaps between the life quality of the rich and poor.