By Rod Sheaff, Susan Pickard and Keri SmithAnalyses and policy statements about publicly funded services frequently distinguish ‘demands’ from ‘needs’. The distinction has been challenged, calling into question the coherence of formulating welfare policy and evaluating public services in terms of needs. This paper explores the conceptual distinction between demands and needs in terms of derived demand and information asymmetry. ‘Needs’ can be defined as ‘rational demands’, where ‘rational’ means ‘consistent and evidence-based’, and ‘demands’ as ‘desires’ rather than ‘effective (i.e. economic) demand’ A study of English NHS Primary Care Groups explores the problems which authorities responsible for publicly funded services face in undertaking these activities. Demand management receives low priority in terms of the incentives and intellectual resources applied to it. Needs assessment has higher priority but is regarded as a branch of evidence-based professional practice, controlled by professionals rather than responsive to users. This separation tends to defeat the purposes of needs-based public services.

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A new three-year planning system is being introduced for the National  Health Service and for social services. The change from an annual planning  round is set out in ‘Investment, Expansion and Reform’ which is published  by the Department of Health.The document also lays down new priorities and details what health and social services will need to achieve in a number of key areas. The Department believes the new planning system will provide more stability and allow the NHS and local authorities to deliver a number of nationally set priorities.

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Grave concerns over the way the government plans to tackle poor performance by councils have been expressed by the Local Government Information Unit which is questioning whether the strategy will even lead to improving servicesIn its response to a consultation paper from the Office of the Deputy Prime Minister, it says it does not believe the comprehensive performance assessment should be the main focus of dealing with poorly performing authorities.

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