Government should move away from PFI and outsourcing

Following the recent Carillon collapse, the Smith Institute think tank has urged the government to pause all public service outsourcing and Public Finance Initiatives (PFI) deals.

With public sector outsourcing contracts currently valued at around £100 billion a year, the Out of contract: Time to move on from the ‘love in’ with outsourcing and PFI report says taxpayers will have to pay a further £95 billion in charges connected with the deals and claims a full examination of outsourcing and PFI deals could lead to many contracts being abandoned and public delivery of public service being reinstated.

Paul Hackett, director of the Smith Institute, said: “We need a new approach based on public service values and community benefit, rather than private profiteering. This report starts to map out what form that new approach should take.”

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