Mark Whitehead 21 November 2018

Outsourcing firms forced to draw up plans in case of collapse

Outsourcing firms forced to draw up plans in case of collapse image

Outsourcing companies will have to draw up 'living wills' saying what would happen if they go bust under plans announced by the Government.

It follows the collapse of giant construction firm Carillion early this year and concern over risks facing several other companies providing services to the public sector.

The living wills would detail contingency plans setting out how public services could continue if a firm collapsed, enabling them to be transferred to a new supplier or taken in-house.

New government plans will require greater transparency and a promise that outsourcing will act as a 'force for good'.

Cabinet Office minister David Lidington told the Business Services Association: ‘Carillion was a complex business and when it failed it was left to Government to step in – and it did.

'But we did not have the benefit of key organisational information that could have smoothed the management of the liquidation.

‘By ensuring contingency plans can be quickly put in place in the very rare event of supplier failure we will be better prepared to maintain continuity of critical public services.’

The move came the day after LocalGov predicted that ministers would have to take action to prevent further disruption caused by outsourcing to big companies.

We said in a Spotlight on Monday that: 'Senior decision makers must be pondering the political consequences of another outsourcing disaster' and ministers would be having a rethink on 'the wisdom of relying on big private sector organisations to provide public services.'

It’s party time image

It’s party time

Paul Marinko tries to help the sector navigate the web of policy commitments for local government on offer after 12 December.
Collaboration is the key to tackling homelessness image

Collaboration is the key to tackling homelessness

With the support of stakeholders, including forward-thinking local authorities, Beam’s innovative support model ‘swiftly removes every barrier faced by homeless people from entering the workforce’, says Seb Barker.
SIGN UP
For your free daily news bulletin
Highways jobs

Chief Executive

South Kesteven District Council
Up to £127k
South Kesteven is a district with plenty going for it. Grantham, Lincolnshire
Recuriter: South Kesteven District Council

ASC Occupational Therapist - Early Intervention Team

Essex County Council
£30300 - £41425 per annum
We are looking to recruit 2 Occupational Therapists to work within Clacton or Colchester. Essex County Council (ECC) is one of the largest and most dy England, Essex, Clacton-On-Sea
Recuriter: Essex County Council

Youth Support Worker DofE

Essex County Council
£995 - £1049 per annum
Our Youth Support Workers work with young people completing their Duke of Edinburgh's Award, supporting them to complete all sections, including their expeditions. England, Essex, Colchester
Recuriter: Essex County Council

Duke of Edinburgh Team Leader

Essex County Council
£19260 - £21682 per annum
We are currently seeking a Youth Work Team Leader to supervise the development of the Duke of Edinburgh program and delivery of youth work projects, as well as work directly with young people in informal settings and maintain professional and purposeful r England, Essex, Colchester
Recuriter: Essex County Council

Head of Programme Management Office

Manchester City Council
£60,857 to £65,865
As the Head of PMO, you will define and maintain standards for project management within the Highways Service. Manchester, Greater Manchester
Recuriter: Manchester City Council

Local Government News

Latest issue - Local Goverrnemnt News

This issue of Local Government News explores how councils can tackle modern slavery and trafficking in their supply chains, finds out more about Cambridge's first cohousing scheme and the launch of a new project to build a shared service pattern library for local government.

This issue also contains a special focus on children's services and how councils are protecting children following local safeguarding children boards being abolished.

Register for your free magazine