Laura Sharman 15 January 2019

Union warns outsourcing 'rockets' after Carillion collapse

Councils are still awarding outsourcing contracts to companies that have recently issued profit warnings, new research has revealed.

Research by GMB found that a year after Carillion’s collapse, the total value of outsourcing contracts in the public sector has increased by 53% in the past year to £95bn.

Capita - who issued a profit warning last January - received contracts worth almost £1.4bn in 2017/18. Interserve - who issued two profit warnings at the end of last year - received £450m worth of public contracts.

The union is calling for an end to outsourcing and privatisation in UK public services.

'What this shows is despite the tragic fiasco of Carillion, the Government hasn’t learned its lesson,' said Rehana Azam, GMB national secretary.

She added: 'GMB believes the disastrous project to fragment our public services for private profit has had its day and we have launched our Go Public campaign to push for an end to outsourcing and privatisation in UK public services.'

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