Public sector outsourcing rocket 53% in 2018 despite struggles
By Caoimhe Toman
Date: Tuesday 15 Jan 2019
(Sharecast News) - GMB union has launched the Go Public campaign to reduce the outsourcing of public services which has risen by 53% in 2018 despite the struggles of many operators in the market and the Carillon collapse last year.
In 2017/18 the lifetime value for the contracts was £95bn, up from £62bn the year before. With a special increase coming from the central government (up 144%) and further and higher education (up 126%).
Capita which incidentally issued a profit warning in 2018, was one of the biggest winners of public outsourcing said the union, receiving contracts worth almost £1.4bn in 2017/18.
Meanwhile Interserve, which issued two profit warnings in just two months at the end of last year, took £450m worth of contracts.
The union this week launches its Go Public campaign which 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?"
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