Warning over outsourcing


The government has been accused of learning nothing in the wake of union research revealing that up to £95 billion of public sector contracts were outsourced in 2017-18, just a year on from the collapse of facilities and construction services firm Carillion. 


This figure is up from £62 billion the year before.


The research, undertaken by the GMB general union, revealed that the total value of public sector outsourcing contracts rocketed by 53% in the past year.


The Capita outsourcing firm was one of the biggest winners, receiving contracts worth almost £1.4 billion in 2017-18 — despite the company 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, with nearly £7 billion worth of debt. 


The collapse cost thousands and jobs and tens of millions of taxpayer pounds. Rehana Azam, GMB national secretary, said: “What this shows is despite the tragic fiasco of Carillion, the government hasn’t learned its lesson.”


Meanwhile, a TUC-backed report is proposing a central depository on outsourced public contracts. A domesday book for public service contracts advocates improved accountability and transparency.

https://www.gmb.org.uk/news/carillion-anniversary-public-sector-outsourcing-value-rockets-53

https://www.tuc.org.uk/sites/default/files/Domesday%20Book%20for%20public%20service%20contracts.pdf