23 July 2012

Councils plan to outsource a third of services by 2015


Laura Sharman

Local authorities plan to outsource a third of all services by 2014/15 in a bid to achieve savings of 18%, according to a new survey.

However, those councils who need to make over 25% efficiency savings - or have budgets over £100m - plan to outsource 60% of all services.

The survey by Yougov and Interserve also found that almost half of authorities have yet to develop or agree a strategy to deal with their 2014/15 budgets.

Adrian Ringrose, chief executive of Interserve, commented: ‘Forward thinking councils are aware that they need a transformational change given the severe pressure on budgets for the foreseeable future.

‘And 38% of councils consider there to be no service area, including Children’s Services and Public Protection, unsuitable for outsourcing.’

The report also found that 44% of councils believe local political concerns are a serious barrier to outsourcing.



Your comments

Is ANM aware that LOCOG is not a public sector organisation? Definition from their website "The London Organising Committee of the Olympic Games and Paralympic Games Limited is a private company limited by guarantee registered in England and Wales, with its registered office at One Churchill Place, Canary Wharf, London E14 5LN and registered number 05267819." Some of the so-called public sector failures arise from private companies operating schemes or providing software which is not fit.

Cynic (experienced optimist), Added: Wednesday, 1 August 2012 01:23 PM

My point was that public services have not been counter-cyclical for 10 of the last 12 years, which is why they are being hit hard now. Anti-outsourcing noise tends to be one-sided; the CSA, Student Loan Co, MOD Procurement, NHS NPfIT - all examples of public sector incompetence. The G4S CEO will lose his job over that fiasco but, no doubt to save cost, LOCOG specified that guards should be paid for training & then only when reqd some months later. What on earth did they think would happen?

ANM, Added: Tuesday, 31 July 2012 02:31 PM

Well,ANM, whoever you are, I have been in the thick of outsourcing issues for the last twenty years and all I can say if you think it leads to genuine productivity improvement you obviously have not studied the evidence. If it leads to cost saving once you allow for VO's and add ons and legal actions it is almost certainly by reducing the T&C's and earnings of public sector workers and in some cases destroying jobs through off shoring.

Patrick Newman, ex local government, Stevenage, Added: Monday, 30 July 2012 07:33 PM

Damn, the Police lost the keys to Wembley, surely it was G4S. Some people will think it was ..

J Smith, Added: Monday, 30 July 2012 06:46 PM

The public sector has not been counter-cyclical since Gordon Brown took the spending brakes off in 2000. Where have you been for the last 12 years during which productivity in the public sector declined and bureaucracy spiralled? Outsourcing is enforced productivity and contrary to what some would like to believe, much if not most of it is done adequately by people who also care about what they do and take a pride in their work.

ANM, Added: Monday, 30 July 2012 03:25 PM

Some have forgotten the whole point of the public sector especially in the current economic malaise. It is precisely not to behave as if it is another form of the private sector. It's function should be countercyclical and of course to tend to the needs of the casualties of the depression whereas it appears to be adding to the unemployed and impoverished. These are the consequences of most privatisations.

Patrick Newman, ex local government, Stevenage, Added: Monday, 30 July 2012 11:16 AM

C'mon cynic, I'm sure a fair proportion of the profits BP will make from contracts in Afghanistan will be made available.....?

Steven Chandler, Added: Monday, 30 July 2012 10:59 AM

In reaction to some of the comments from Public Sector (PS), when a business's income is greatly reduced, it is important to reduce expenditure; basic business admin; by reducing staff numbers or by plugging holes that haemourage money. Because the private sector has shrunk considerably, Govment spending must also reduce but this seems difficult for the PS to comprehend. Alterntively, Govment could plug the hole called pension payments which would save ?35 billion a year. Your choice.

Michael Dewar, Added: Monday, 30 July 2012 10:59 AM

Forgot to add just as well G4S failed this side of the armed forces cuts. Otherwise what war zone would we have had to pull out from to cover home security?

cynic (experienced optimist), Added: Thursday, 26 July 2012 02:15 PM

Don't worry Steve when the private sector fails they still get paid their contract fees so the little tax they finally pay will keep all of us 'louts' in food/beer etc. Kenny has no comment on the most recent disaster where our educated government allows G4S to fail (with no help from local government Mr Smith!) and will still pay them their fees.

cynic (experienced optimist), Added: Thursday, 26 July 2012 02:13 PM

Oh good, more private sector snouts getting porkier whilst service standards and employee pay and conditions diminish. Now even the private sector failings are being blamed on "incompetent people writing and letting contracts with such gaping ...blah-de-blah-de cliche blinkered cliche froth-at-the-mouth platitude" Broken Britain alright, the country's truly gone to the dogs - these barking mad, self-serving, pocket-lining, money chasers are still allowed to participate! Yap yap yap(ad nauseam)

Steven Chandler, Added: Thursday, 26 July 2012 09:36 AM

If councils can make these savings and become more efficient have they been robbing us for years? Perhaps senior managers and coucillors could answer this one Outsourcing problems and privatised disasters are the result of incompetent people writing and letting contracts with such gaping holes in that these diasters are able to happen

KENNY PINE, Added: Wednesday, 25 July 2012 12:26 PM

Here we go again - more myth peddling about the results of privatisation. There are only two consequences of most privatisations (not including unmitigated G4S style disasters) - long term reduction in services by attrition and unpicking pay and T&C's of the lowest paid of our citizens.

Patrick Newman, ex local government, Stevenage, Added: Wednesday, 25 July 2012 09:56 AM

After yet another Private Sector fiasco with the olympics security is out sourceing really the way to go in an attempt to save money

Barry Richards, Bath , Added: Monday, 23 July 2012 04:22 PM

If there's one certainty in all this cost and service cutting, it's that the average level of council tax will not reduce by any noticeable amount. It may not actually increase whilst the political advantage of trumpeting a zero % increase every March remains, but please don't expect hundreds of ?s to be disappearing from our council tax bill any time soon, if ever.

Roger, Lincolnshire, Added: Monday, 23 July 2012 04:20 PM

Why stop there? The sad thing is if the pension deals and conditions of employment were the same as the private sector, we could employ a lot more public sector employees and perhaps get a service worthy of the name. But the sticking point will be getting rid of the gold plated pensions.

Michael Dewar, Added: Monday, 23 July 2012 04:18 PM

That is a start and we will believe it when we see it. Why is that? Councils are constructed to spend (& too often waste) other peoples money They have little or no skills in saving money & doing things efficiently. I the last 20 yrs the unions are more worried about employment rights & pensions, rather than those that pay for it, the taxpayer. We need to see CT cuts, as it doubled under Labour, with no perceptible benefit to those who pay

J Smith, Added: Monday, 23 July 2012 01:52 PM



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