A report in today's (2/3/16) Guardian says that an increasing number of local councils, both Tory and Labour, are discovering that outsourcing services does not produce the expected savings and who, as a result, are bringing services back in-house. Read the article here.
The Guardian survey found that "... of the 36 strategic public-private partnerships (PPPs) that local authorities signed between 2000 and 2007 has found that 13 of the contracts – which ranged from seven to 15 years and covered IT, back-office functions, property management and highways – have since gone back in-house, either at the end of contract or as a result of early terminations. That means that in more than a third (36%) of cases, councils found that delivering services in-house could save more than outsourcing to commercial companies in long-term, multi-service partnerships."
Cheshire East has turned itself into a "strategic" council which contracts out almost all its services to private sector or arms-length companies. Will it also find, like Cumbria, Essex, Sefton, Liverpool, Somerset and Islington amongst others, that they can deliver better services more economically by bringing them back in-house?