The liberty deficit left by the last government – the gap between the freedom enjoyed by UK citizens in 1997 and what was left in 2010 – is not something that Labour has got its head round yet. The candidates in the leadership election talk about reconnecting with the public, but Balls, Burnham and the Milibands simply don't grasp that they have effectively excluded themselves from the only liberal-progressive act in town. Diane Abbott gets it, but the standard male products of the New Labour curia have got a long way to go.

One reason they wrote themselves out of the picture appears in a study from the Centre for Technology Policy Research at the LSE, which is summarised by Ian Grant in Computer Weekly this week. The LSE thinktank concludes: "Despite a spend of as much as £21bn (a year) on public sector IT, it is difficult to find any compelling examples of direct productivity gains and improved public services."

Much of the money was spent on intrusive databases – last year, I estimated a total of well over £33bn. We were told it was necessary to give up our personal information to allow the joined-up delivery of services. Prospect magazine praised the programme and declared that personal data was like a tax that we owed to the state; that privacy was luxury we could no longer afford in the modern era.

Transformational Government, as the programme was known, was driven by a simple faith in operational savings that were entirely theoretical – "an anachronistic and ultimately ineffective approach from which the UK has only recently begun to distance itself". The following are the crucial lines from Ian Grant's report:

"Transformational Government [used an] outdated, 20th-century approach of imposed command and control enabled by large central databases. It distracted government from its own policy aspirations and ignored where the technology of the internet age was heading – towards more localised, autonomous, distributed and consumer-responsive services built around common technical standards."

In other words, the statism that demanded we give up personal data and submit to the surveillance society not only had few tangible benefits and was a vast waste of money, but was based on decidedly old thinking that was entirely unsuitable to the internet age. How very satisfying it is to have something that many of us suspected so unequivocally confirmed. The phrase "imposed command and control" is the key to so much of Labour's attitude in government and that is where the leadership candidates and the party has some serious introspection to do. The signs are not yet good.