Mark Whitehead 22 January 2018

Pause all outsourcing and PFI contracts, urges think tank

Pause all outsourcing and PFI contracts, urges think tank image

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

Building Services Engineer

Redbridge London Borough Council
£42,684.00 £45,585.00
An exciting opportunity has arisen for 2 Building Services Engineers to assist in maintaining the Council's Property Portfolio. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Statutory Compliance Officer

Redbridge London Borough Council
£31,548.00 - £33,291.00
This is an exciting time for the London Borough of Redbridge; we are at the heart of regeneration and change in East London, with... Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Planning Officer

North West Leicestershire District Council
Band E, £25,295 - £28,785
Are you an enthusiastic and self-motivated team player who wants to make a major contribution to the work of our Planning and Development Team? Coalville, Leicestershire
Recuriter: North West Leicestershire District Council

Brokerage Officer x2

Redbridge London Borough Council
£33,291.00 - £34,794.00
We are looking for someone whois highly numerate, and able to communicate effectively both verbally and in writing. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Education Support Officer - Sandwell Young Carers

Sandwell Metropolitan Borough Council
£17,802 per annum
If you would like to make a real difference to the lives of the young carers of... Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how public sector organisations can unlock the hidden value in their land, and why a new approach to construction could help boost the outcomes of the Government’s One Public Estate programme.

The December issue also considers why learnings from ancient cities could provide the key to promoting wellbeing in the modern built environment. It also contains a case study on how the London Borough of Westminster has provided high quality care for the elderly alongside a block of luxury apartments.

Register for your free digital issue