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.

Skate parks are not the only fruit image

Skate parks are not the only fruit

On Go Skateboarding Day, Susannah Walker asks councils and their leisure and park departments to think differently about what facilities they provide for teenagers.
For your free daily news bulletin
Highways jobs

Officer - Highways/Streetworks

Oxfordshire County Council
£25,419 - £28,226
Do you want to improve Oxfordshire's highways to make them better for residents, business, and visitors? Oxfordshire
Recuriter: Oxfordshire County Council

Senior Project Manager

Leicestershire County Council
£47,523 - £52,402
The role of this post is to oversee the project management, development and implementation of the County Council's Major Transport Projects. Leicester, Leicestershire
Recuriter: Leicestershire County Council

Senior Media Officer

Northumberland County Council
Building strong communities, transforming lives and delivering value for money – just a snapshot of our current priorities. Leicester, Leicestershire
Recuriter: Northumberland County Council

Performance and Information Service Manager

Blaby District Council
£38,553 - £41,591
We are proud of our Council and, truly aspire to Blaby District being a great place in which to Live, Work and Visit. Blaby, Leicester
Recuriter: Blaby District Council

Team Leader - Data Management

London Borough of Richmond upon Thames and London Borough of Wandsworth
£34,131 to £41,361
We are looking for a highly motivated and enthusiastic individual to join our Pensions Shared Service. Wandsworth, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.