Plan for public to take control of public services will not guarantee savings and could inflame social division, say critics – Guardian
BTW – before Charles Moore bursts another blood vessel I should point out I was on BBC R4’s The World Tonight (12/04/2010) criticising the Labour Manifesto’s commitments on public sector organisations.
STATECRAFT - improving government 
Two things. First, the ‘inescapable costs’ associated with running smaller organisations are not inescapable at all. We have a ridiculous, burdensome, ineffective, duplicated and costly set of inspection regimes in this country which not only fail to deliver their intended outcomes but also produce destructive unintended consequences. Second, “there is no more powerful force for change than a community discovering what it cares about…” (Meg Wheatley). Poor and disenfranchised communities are just as capable (with perhaps some priming capacity-building) of working out their issues – and the outcomes will be all the more effective and sustainable.