Government private sector contracts subsidise inequality

Mark Page, 2015 Jan 04
The British just love those shady back-room deals!

The Equality Trust says “The value of government contracts handed to the private sector has increased dramatically over the last five years and is likely to continue growing at a rapid pace. This recent growth in outsourcing has raised concerns, with a number of private providers widely criticised for poor transparency, poor management of government money, and in particular excessively high executive pay and pay inequality between employees.”

In light of the recent failure of the private running of Hinchingbrooke hospital this seems a pretty pertinent observation.

This is the full briefing note from The Equality Trust: Subsidising Unfairness.

Here is an executive summary:

  • In 2013 the Government spent approximately £93.5bn on third party services. This is half the £187bn government spends on goods and services each year.
  • In 2013 the Director of Telereal Trillium was paid £1.4 million or 116 times the amount someone on the national minimum wage gets from working full time for a year. In contrast, the pay ceiling for civil servants is £334,999.
  • None of the top government contractors are accredited Living Wage employers
  • 88% of the UK population thinks that private companies running public services should be as transparent about their performance and financial data as the public sector.