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.

Declaring a climate change emergency image

Declaring a climate change emergency

Local authorities can play a key role in tackling climate change – and there is plenty for them to do. Never before has thinking globally and acting locally been more important, says Mark Whitehead.
Open letter to Boris Johnson image

Open letter to Boris Johnson

The MJ's editor Heather Jameson asks the new PM a simple question: do you want to fund local government or do you want to scale back services to the basics?
Highways jobs

DEPUTY DIRECTOR

City of Bradford MDC
£102K
Big and diverse, Bradford is the UK’s youngest city Bradford, West Yorkshire
Recuriter: City of Bradford MDC

Senior Financial Accountant

Essex County Council
£50001.0 - £59590 per annum
Essex County Council is one the largest and most complex local authorities in the UK, with a turnover of £2bn. We are a Council with high ambitions, a England, Essex, Chelmsford
Recuriter: Essex County Council

Financial Accountant

Essex County Council
£38001.0 - £44440 per annum
Essex County Council is one the largest and most complex local authorities in the UK, with a turnover of £2bn. We are a Council with high ambitions, a England, Essex, Chelmsford
Recuriter: Essex County Council

Senior Practitioner - Children in Care

Essex County Council
£38000.0 - £46000.0 per annum
Senior Practitioner - Children in Care - BasildonIn ECC we are "Serious about Social Work". Having recently won the Best Social Work Employer of the Y England, Essex, Basildon
Recuriter: Essex County Council

Casual Lifeguard

Chelmsford City Council
Grade 3 - £9.29 per hour
South Woodham Ferrers Leisure Centre is a large, multi-purpose complex accommodating a swimming pool, a sports hall, two further halls, Fitness Roo... Chelmsford, Essex
Recuriter: Chelmsford City Council

Local Government News

Latest issue - Local Goverrnemnt News

The June issue of Local Government News contains the full details of all the winning schemes in the 2019 Street Design Awards. From Children's Play to Pedestrian Environment, find out who has been recognised for their innovation and use of best practice.

This issue also explores how local government pension funds can hedge currency risk, how councils can best address the shortfall in school places, and an update on the number of authorities banning the use of Roundup over safety fears.

Register for your free magazine