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Public Sector Outsourcing Shoots Up To £95 Billion

Tuesday, January 15, 2019

CARILLION ANNIVERSARY: VALUE OF PUBLIC SECTOR OUTSOURCING CONTRACTS ROCKETS 53% IN PAST YEAR TO £95 BILLION

Government hasn’t learned its lesson says GMB as union launches Go Public campaign to end drive to outsource public services

A year on from Carillion’s collapse GMB, Britain’s general union, has revealed the total value of outsourcing contracts let by the public sector rocketed by 53% in the past year.

In 2017/18 the lifetime value for the contracts captured by the Tussell database was £95 billion – up from £62 billion the year before. [1]

Capita was one of the biggest winners of public outsourcing, receiving contracts worth almost £1.4 billion in 2017/18 - despite issuing a profit warning in the same year.

Meanwhile Interserve - who issued two profit warnings in just two months at the end of last year, scooped almost half a billion pounds worth of public contracts (£450 million).

Carillion went bust last year carrying nearly £7 billion in debt. The collapse cost thousands and jobs and tens of millions of taxpayer pounds.

GMB says this shows a Government hell bent on privatisation has learned nothing from the Carillion fiasco.

The union this week launches its Go Public campaign which, among other things, calls for an end to outsourcing and privatisation in UK public services and for a better deal to the taxpayer.

Rehana Azam, GMB National Secretary, said:

“What this shows is despite the tragic fiasco of Carillion, the Government hasn’t learned its lesson.

“The Conservatives are hell bent on privatisation and outsourcing our public services - regardless of the consequences.

“What other explanation can there be for this huge increase on outsourced contracts in the year Carillion went bust and when other outsourcing giants look like they’re on life support?

“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.

“GMB will demonstrate just what a bad deal the public is getting by this Government on public services.”

ENDS

Contact:

Notes to Editors:

[1] Total (lifetime) value of public sector contracts awarded (for ‘services,’ as opposed to contracts for goods or works) captured by Tussell database

 

Totals

 

 

Part of public sector

 

 

2016/17

 

 

2017/18

 

 

Change

 

 

Central Government

 

 

£22,111,205,677

 

 

£53,971,768,742

 

 

144%

 

 

Further and Higher Education

 

 

£903,381,876

 

 

£2,038,516,010

 

 

126%

 

 

Local Government

 

 

£27,797,668,534

 

 

£26,876,147,176

 

 

-3%

 

 

NHS

 

 

£11,323,281,000

 

 

£11,937,413,414

 

 

5%

 

 

Parish Councils

 

 

£434,943

 

 

£1,050,429

 

 

142%

 

 

Schools

 

 

£99,350,049

 

 

£200,444,389

 

 

102%

 

 

Total

 

 

£62,235,322,079

 

 

£95,025,340,160

 

 

53%

 

 

One contract let by Lewes and Eastbourne councils in 2017/18 had an exceptionally large variation in potential values (from £500 million to £50 billion). The above table assumes the lower figure. For more information see:https://www.contractsfinder.service.gov.uk/Notice/b33d3bb6-623b-462c-a7b5-d57186774afd

Data is ultimately sourced from the UK Government’s Contracts Finder service and the European Union’s Tenders Electronic Daily service. 

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