Oral Answers to Questions

Debate between Afzal Khan and David Lidington

Wednesday 27th June 2018 Commons Chamber

[Afzal Khan (Manchester, Gorton) (Lab)]

1. What recent assessment he has made of the value for money of outsourcing public services.

[The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Mr David Lidington)]

Recent business cases submitted by Departments for approval show savings to taxpayers from outsourcing in the range of 9% to 30%.

[Afzal Khan]

A recent Public Accounts Committee report found that after more than 25 years the Treasury still has no data on whether the private finance initiative model provides value for money. People in my constituency are concerned about back-door privatisation and the kinds of PFI contract often used in hospitals, which leave staff in the dark, not knowing about the security of their jobs. Will the Minister review PFI contracts and privatisation across all Departments in the light of the PAC report’s findings?

[Mr Lidington]

Let us consider this:

“It simply would not have been possible to build or refurbish such a number of schools and hospitals without using the PFI model.”—[Official Report, 14 November 2007; Vol. 467, c. 665.]

Those are not my words, but those of Gordon Brown, the last Labour Prime Minister.