Mark Whitehead 22 January 2018

Pause all outsourcing and PFI contracts, urges think tank

A think tank has called for an end to the Government's 'love-in' with outsourcing and Public Finance Initiatives.

The left-leaning Smith Institute think tank demands an immediate pause in all public service contracting and a review of all existing deals.

Its report, ‘Out of contract: Time to move on from the ‘love in’ with outsourcing and PFI’ follows the Carillion debacle which the institute says has shown the 'serious risks and excessive costs to the taxpayer when government becomes reliant on outsourcing companies.'

It says public sector outsourcing contracts are currently valued at around £100bn a year - but taxpayers will have to pay a further £95bn in charges connected with the deals.

Authors John Tizard, former senior executive of outsourcing specialists Capita, and David Walker, former director at the Audit Commission, say a full examination of outsourcing and PFI deals could lead to many contracts being abandoned and public delivery of public service being reinstated.

They say local government, the devolved administrations and some NHS trusts are taking services back in-house, finding that they can be cheaper, better quality, more flexible and more accountable.

The institute's director Paul Hackett said: 'We need a new approach based on public service values and community benefit, rather than private profiteering.

'This report starts to map out what form that new approach should take.'

Councils have already started to bring services back in-house following the news Carillion has gone into liquidation.

Writing for The MJ (£), John Tizard and David Walker demand a reflection on where the last 30 years of competitive tendering has brought us.

SIGN UP
For your free daily news bulletin
Highways jobs

Social Worker - Assessment & Intervention, Mid Essex

Essex County Council
£36124.00 - £51834.00 per annum
Social Worker - Assessment & Intervention, Mid EssexPermanent, Full Time£36,124 to £51,834 per annum Location
Recuriter: Essex County Council

Information Management and Data Services Officer

Durham County Council
Grade 9 £35,412 - £39,152
Do you have what it takes to develop innovative data products to help drive improvements? This is an exciting time to join Durham’s Children and Youn Spennymoor
Recuriter: Durham County Council

Social Worker

Durham County Council
Grade 9 (Pre-Progression) £35,412 - £39,152 / Grade 11 (Post-Progression) £40,777- £45,091 - Pay Award Pending
We are seeking a dedicated and enthusiastic social worker to play a key role within the Social Care Direct team, which serves as the vital ‘front of h Durham
Recuriter: Durham County Council

Partnership Support Officer

Durham County Council
Grade 9 £35,412 - £39,152
An exciting opportunity has arisen for a Partnership Support Officer to join our Partnerships and Consultation Team. You will provide support to the Durham
Recuriter: Durham County Council

Project Support Officer

Durham County Council
Grade 8 £32,597 - £36,363 p.a Pay Award Pending
We are looking for a highly motivated and organised individual to join our Digital Programme & Communities Team as Project Support Officers. The role Durham
Recuriter: Durham County Council
Linkedin Banner