Labour to abandon one-third of targets

The Government is to scrap many of its performance targets for public services in a move that has provoked allegations it is "moving the goalposts" because it will not meet these aims.

Ministers believe that up to a third of the 160 targets set two years ago will disappear when the Chancellor Gordon Brown unveils a new three-year public spending plan in July. Among those likely to be dropped include pledges to cut the number of under 25-year- olds using hard drugs, to reduce repeat offending by drug abusers and to cut the number of pupils excluded from school.

Other targets that may be missed but are likely to remain a goal include pledges to improve numeracy and literacy; cut truancy; reduce the number of children growing up in poverty and in households with nobody in work; and to cut the fear of crime and its economic cost.

Downing Street and Treasury sources confirmed the number of targets would be reduced significantly but denied the move was aimed at heading off embarrassment. One Whitehall source said: "Some of the targets have been overtaken by events or policy changes. They have been a useful tool. But what matters is the standard of service to the public, not an arbitrary target set some time ago."

Privately, ministers admit the Government has fixed too many targets and believe that they have sometimes left front-line staff confused and demoralised. Yesterday, it emerged the Commons Public Administration Select Committee is to launch an inquiry into the targets system because of the growing criticism. Some members believe the "league table culture" has helped middle class families to "play the system", leaving poor families to struggle with the poorest services.

Mr Brown has told Cabinet colleagues he wants to refine the Treasury's targets for departments to ensure they give greater emphasis to "customer satisfaction". The move away from rigid targets is part of a rethink under which ministers will devolve more power to senior public sector staff. Ministers now admit that Labour has had an "over-centralised, top down" approach since coming to power in 1997.

The Chancellor has told ministers they will win more Treasury money if they set national standards but then transfer decision-making to the front line while ensuring that staff remain accountable. He also demanded greater flexibility in the way services are delivered and greater choice for the public.

Tough negotiations are under way on how the public spending cake is cut. Mr Brown's decision to pump another £40bn into the National Health Service over five years has left little room for expansion in other areas.

David Blunkett, the Home Secretary, has revised downwards what the Treasury described as an "astronomical" bid for extra funds for the police, prisons and asylum. But he is still at loggerheads with Mr Brown, who is sceptical that the Home Office plans will reduce crime.

The Chancellor told a private meeting of Labour MPs: "It is certainly not true to say that because the Budget concentrated on health, this would mean that other vital services such as education, transport and housing will lose out." However, he did not mention crime or defence, which face a squeeze.

Last night, the Tories accused the Government of "moving the goalposts" to try to hide its failure to improve services. John Bercow, the shadow Chief Treasury Secretary, said: "These targets were announced with a fanfare of trumpets. To fail to meet legitimate targets set by independent experts would be disappointing. To fail to meet one's own targets requires incompetence on a spectacular scale."