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Public Sector

Cabinet Office written question – answered on 23rd April 2019.

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Photo of Lord Ouseley Lord Ouseley Crossbench

To ask Her Majesty's Government what assessment they have made of the relative merits of public services being run directly by public service operations in comparison to private contractors.

Photo of Lord Young of Cookham Lord Young of Cookham Lord in Waiting (HM Household) (Whip), Lords Spokesperson (Cabinet Office)

Outsourcing is an important component in a “mixed economy” of government service provision which includes in-house and the voluntary sector. Research commissioned by the previous government has shown that outsourcing can deliver savings of some twenty to thirty percent.

Decisions on whether to outsource any particular service are made on a case by case basis according to Treasury guidance and the newly published Outsourcing Playbook. This guidance aims to ensure government makes well evidenced assessments when deciding whether to outsource a public service and helps government and industry work better together to deliver high quality public services.

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