Laura Sharman 16 April 2018

Shareholders accused of 'cashing in' from outsourced services

Shareholders accused of cashing in from outsourced services image

Shareholder dividends from outsourced public services have risen by 67% in six years, new research from the TUC has revealed.

The analysis found that dividends and profits for the seven largest public limited companies that are running outsourced public services reached £642m in 2016, an increase of 67% since 2010. It also found divividends had increased despite pre-tax profits falling by 31% across the same period.

The TUC said public services should be protected in the wake of Carillion's collapse three months ago. It wants a new public interest test and corporate governance reforms for outsourced public services.

TUC general secretary, Frances O’Grady, said: 'We need to get back to running public services for the common good. Frontline staff work hard and aim high because they care about the community they serve. That should be the motivation for public service managers and boardrooms too.

'The Government needs to rethink outsourcing. Most services would be better off back in public hands. And the Government must reform outsourcing and corporate governance rules so that all services are run for the long-term benefit of the communities that depend on them.'

Basic income pilots image

Basic income pilots

Gail Irvine finds out how local government in Scotland is leading the way on basic income.
Highways jobs

Change Lead, Adult Social Care & Health

London Borough of Bexley
£41,205 - £48,069
We are currently seeking an experienced Change Lead to work on our Adult Social Care Services’ transformation programme. Bexleyheath, London (Greater)
Recuriter: London Borough of Bexley

Deputy Team Manager

Brent Council
£41,847 - £44,691 p.a. inc.
An exciting opportunity has arisen in the Hospital Discharge Team (HDT) for an experienced Social Worker. Wembley, London (Greater)
Recuriter: Brent Council

Highways Estimator

Ringway
Competitive Salary
As the Highways Estimator you will join a busy environment and become an integral part of the team. Hounslow (London Borough), London (Greater)
Recuriter: Ringway

Joint Strategic Director of Commissioning 

West Sussex County Council
circa £130,000 per annum
The post holder will be able to demonstrate an understanding and embrace the opportunity to address the health... West Sussex
Recuriter: West Sussex County Council

Head of Lifelong Services

West Sussex County Council
up to £85,000 per annum
The Head of Lifelong Services will lead and deliver a new, co-produced, integrated and whole life approach and service working with people... West Sussex
Recuriter: West Sussex County Council

Local Government News

Latest issue - Local Goverrnemnt News

The December issue of Local Government News looks at the consequences a council may face if it is unable to provide statutory services, the launch of Liverpool’s housing company and how councils can best manage roles in local authority companies.

It also has a special section on green building and energy efficiency including what funding is available to enable councils to deliver heat networks and how councils can pay for ‘smart buildings’.

Register for your free magazine