by Sam Warner, David Richards, Diane Coyle and Martin J. Smith

In our recent article published in Policy & Politics, we examine how centralised financial control and short-term political pressures have undermined the performance of the Prison Service in England and Wales. As successive governments grapple with the problem of overcrowded, poorly performing prisons, the effectiveness of prison governance and resource management is a live issue with significant political and policy implications. Drawing on extensive interviews and documentary analysis, our article highlights how governance structures intended to deliver efficiency have instead constrained local autonomy and eroded service outcomes.

A paradox of New Public Management

Despite New Public Management’s (NPM) long made promises of greater efficiency through devolved managerial discretion, we argue that, in practice, the UK’s central government frequently reasserts input controls—particularly through the Treasury’s dominance of budgeting frameworks. Existing literature explores this paradox through elite incentives structures, but we focus on the implications for public financial management beyond the centre. We argue that this paradox creates tensions for public managers who are held accountable for delivering outputs and outcomes but lack the financial flexibility to do so effectively.

Case study evidence from the Prison Service

Using the Prison Service as a detailed case study, the article shows how governance arrangements evolved from the 1990s onward. While initial reforms introduced managerial autonomy, a shift toward hyper-centralised control—especially post-2010—saw the Treasury and the Ministry of Justice exert increasing influence over financial management and other operational and commercial practices. As a result, prison governors are left with reduced authority in key areas of decision-making. Their job is made harder, and resource allocation is less efficient, as a result.

Short-termism and degraded outcomes

Our article illustrates how a focus on short-term fiscal targets led to cost-cutting measures that undermined service quality. This included staffing reductions, deteriorating prison conditions, and rising incidents of violence and self-harm. Interviewees repeatedly emphasised that innovation and local responsiveness were being crowded out by rigid, top-down control. We argue that these dynamics not only degrade service performance but also represent a long-term false economy.

A call for more strategic governance

Our article points to the importance of rebalancing the system—restoring autonomy at agency and local levels and embedding longer-term thinking into resource allocation and financial management. The UK’s current approach to performance budgeting continues to prioritise centralised control over outcomes. Addressing this imbalance is vital if public services are to meet complex, long-term challenges effectively.

If you’d like to read more, please see the full research article by Sam Warner, David Richards, Diane Coyle and Martin J. Smith in Policy & Politics: The inefficiency of centralised control and political short-termism: the case of the Prison Service in England and Wales.

The authors would like to thank the Nuffield Foundation for funding this research.

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You can read the original research in Policy & Politics at

Warner, S., Richards, D., Coyle, D., and Smith, M. J. (2024). The inefficiency of centralised control and political short-termism: the case of the Prison Service in England and Wales. Policy & Politics (published online ahead of print 2024), available from: < https://doi.org/10.1332/03055736Y2024D000000053>

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