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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Occupational Therapist - Adult Social Care

Essex County Council
£38487 - £51834 per annum
Register your interest here to be notified of upcoming Occupational Therapist opportunities within Essex County Council's Adult Social Care services. England, Essex, Chelmsford
Recuriter: Essex County Council

Attendance Compliance Officer - ESO Facilitator

Essex County Council
£33915.0000 - £39900.0000 per annum
Attendance Compliance Officer - Education Supervision Order FacilitatorFixed Term, Full Time£33,915 to £39,900 Per Annum Location
Recuriter: Essex County Council

ACL Senior Trainer - English for Speakers of Other Languages

Essex County Council
£33711.0000 - £39659.0000 per annum
ACL Senior Trainer - English for Speakers of Other LanguagesPermanent, Full Time£33,711 to £39,659 per annumLocation
Recuriter: Essex County Council

Regeneration & Economic Growth Senior Officer

Essex County Council
Up to £25.0000 per hour + PAYE
Main Purpose
Recuriter: Essex County Council
Linkedin Banner