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TOPIC: Conservatives ‘hell bent on privatisation’ as outsourcing contracts soar 53%

Conservatives ‘hell bent on privatisation’ as outsourcing contracts soar 53% 19 Jan 2019 12:40 #13083

  • TheFinnster
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It’s been one year since outsourcing giant Carillion collapsed. Now the GMB Union has revealed that just one year on, private contracts for public sector services have “rocketed”. Last year, the value of outsourcing contracts rose by 53%.
Profits rising

GMB’s research showed that £95bn worth of contracts were issued to private companies in 2017/18. This was up from £62bn the previous year – a 53% rise. Some of the largest rises came from central government (up 144%), further and higher education (126%) and schools (102%).

However, one of the biggest issues is that the government seems to have ignored lessons from Carillion’s fall. As Welfare Weekly reported, the company was “nearly £7 billion in debt” when it collapsed. It also caused a national crisis when thousands of people lost jobs. The collapse cost “tens of millions of taxpayer pounds”. Meanwhile, public services plunged into chaos around the country. For example, firefighters had to step in to ensure children got school lunches.

These winners are losers

In 2017/18, Capita was one of the “biggest winners”. It won contracts worth nearly £1.4bn. Yet these were awarded even though it had issued a profit warning.

And Capita has also been mired in scandal for its role in carrying out disability assessments for Personal Independence Payments (PIP). MPs criticised the “accuracy of reports sent” to the Department for Work and Pensions (DWP).

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