Margaret hodge

The A4e scandal is getting worse. Emma Harrison has quit as David Cameron’s back-to-work tsar, the police are still investigating a case discovered last year and there’s a suggestion their investigation is widening. This is, for David Cameron, the dark side of the Big Society. In my Daily Telegraph column today, I explain why. ‘The Big Society’ is a silly name for a good idea: that lots of companies, charities, etc will help provide government services. They are given freedom to innovate, to create — and the freedom to get things badly wrong. This is the freedom which A4e seems to have availed itself of. It grew like crazy, perhaps too fast. Its internal audit procedure found four staff who had been falsely claiming to get people back in work.

Today's report by the Public Accounts Committee hasn't so much been released as detonated onto the Westminster scene. The Exchequer is owed around £25 billion, it suggests, from major companies that have been handled too leniently, or just plain wrongly, by HM Revenue & Customs. And much of the blame is attached to Dave Hartnett, the outgoing civil servant in charge of revenue collection. Interviewed on the Today Programme earlier, the chair of the committee, Margaret Hodge, implied that Hartnett had too ‘cosy’ a relationship with big business.

There is nothing like being wise after the event. The Public Accounts Committee has turned on the private finance initiative, saying there is ‘no clear evidence’ that PFI delivers more value for money and no evidence that taxpayers have shared the profits. The committee reported: 'There were instances where PFI may have been used where there was no evidence that it was the best procurement route. Local authorities and health trusts used PFI because there was no realistic alternative, not because it represented best value for money. The use of PFI and its alternatives should now be robustly evaluated. Looking back at PFI procurements, the government should also do more to find out where and why PFI works best and capture the lessons.