Outsourced public services have grown 130 per cent since 1995 and a review of the public services industry has called for the appointment of a Director of Service Delivery for all government departments and local authorities. The industry has grown so significantly that it is now second in size only to the US, and with a turnover of 79 billion pounds contributes more to the UK economy than key industries such as communications and electricity, gas and water supply.
The Public Administration Committee in its report on third sector delivery of services said that the people who decide on the contents and results of tender exercises are the key to ensuring the right results. It calls for more incentives to encourage talented people to work as commissioners.
The committee is skeptical about the claim about a greater role for the third sector in service delivery, because it can deliver services in distinctive ways which will improve outcomes for service users.
This pamphlet from the TUC seeks to inject a trade union perspective into the debate about public policy issues. It analyses successive market initiatives by different governments and shows that the original justification for contracting out was that it would simply deliver cash savings.