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Chief Secretary to the Prime Minister announces new Public
Interest Test to be applied before renewing expiring
government contracts to prioritise long-term value.
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New approach to procurement signals ambition to end the era
of outsourcing by default, as government looks to bring
cleaners and security staff in-house.
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The move follows action taken previously by Chief Secretary
to the Prime Minister to establish the National School
of Government and Public Services to move away from
outsourced training contracts.
The government has published new guidance to provide a route for
bringing key services back in-house and get the absolute best
results for taxpayers.
While the government will continue to work collaboratively with a
whole range of suppliers to the public sector, the new Public
Interest Test will ensure departments and officials look beyond
short-term pricing to focus on long-term service quality and
public value for contracts over £1 million.
Under the new guidance, central government departments with over
£100 million in annual contract spend will create five-year
roadmaps to rebuild their in-house capabilities, reversing years
of outsourcing that eroded the state's capacity to deliver its
own services.
This follows action on outsourcing taken by , the Chief Secretary to the Prime
Minister, in establishing the National School of Government and
Public Services, to move away from outsourced government training
contracts.
We have accelerated this transition and will not be taking
forward the Learning Framework 2.0 procurement, with our new
in-house model reducing reliance on external spending and
providing better value for the taxpayer.
Chief Secretary to the Prime Minister said:
I want to end the era of outsourcing by default' and build
stronger in-house capacity. The British people deserve value for
their money not just the cheapest, short-term option which may
not deliver quality in the long-term.
By introducing this Public Interest Test, and leading the way by
looking to bring our cleaners and security staff back in-house
when major contracts end in 2028, we are rebuilding our national
capacity to deliver high-quality services the British people
deserve.
Chancellor of the Exchequer , said:
"I am determined to change the UK's economic model so that public
services are run in the public interest with more workers brought
back in-house.
For too long outsourced workers who play a vital role in public
services have been overlooked and treated differently. This
government was elected to insource more public services and that
is what we are doing."
Cabinet Office Minister said:
"This government promised to deliver a wave of insourcing - and
that starts in our own buildings and with our own staff.
Bringing the government's cleaning and security services back in
house is just the start, and - alongside a new Public Interest
Test - shows that under this government, the age of outsourcing
is over."'
The work will build a fairer, stronger Britain by making sure
taxes are spent wisely on services people can rely on.
The government is looking closely at how major contracts are
managed to set a fresh, reliable direction for the future, and is
fully committed to driving up standards, supporting working
people, and delivering public services that work for everyone.
When current contracts are coming to an end, officials will
thoroughly check if those services should be run directly by the
public sector instead of automatically hiring private companies.
Subject to completing a Public Interest Test, the Cabinet Office
will look to bring its building management services, including
cleaning and security staff, back in-house as soon as possible,
with this process beginning when current contracts end in
2028.
Applying the test to these services will cover contracts across
83 government buildings, and could mean the government opting to
take control of frontline workplace services to strengthen our
capability and operational security while securing value for
money.
