Mark Whitehead 21 November 2018

Outsourcing firms forced to draw up plans in case of collapse

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.'

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Housing Strategy, Quality and Assurance

Redbridge London Borough Council
£89,037 - £92,538
We’re looking for someone who can think holistically, and work in collaboration with other stakeholders Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Driver

North Yorkshire Council
£24,796 - £25,989 per annum, pro rata
We are looking for caring, flexible, team orientated and committed people to help us provide this transport. North Yorkshire
Recuriter: North Yorkshire Council

School Crossing Patrol

North Yorkshire Council
£12.85 - £13.47 per hour
All our school crossing patrols provide a really valuable service to the local community Knaresborough, North Yorkshire
Recuriter: North Yorkshire Council

Adults Social Worker - Mid Essex

Essex County Council
£37185 - £50081 per annum
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in Mid Es England, Essex, Chelmsford
Recuriter: Essex County Council

Highways Maintenance Operative

Amey
£Competitive
Working with National Highways, Amey maintains over 700 kilometres of roads across the East Midlands Northampton, Northamptonshire
Recuriter: Amey
Linkedin Banner