Public Services

Baroness Chakrabarti Excerpts

Tuesday 26th October 2021 Lords Chamber

[Lord Greenhalgh (Con)]

I agree with my noble friend. There has been a tremendous success in the competitive tendering of services that has driven down cost and increased value for money for the taxpayer, and also seen an improvement in the delivery of local services. It is not surprising that £64 billion is now paid out by local government to private companies to deliver those services. Although local authorities have the powers to trade and charge, they should think very carefully before they decide to move back to the situation before the introduction of competitive tendering.

[Baroness Chakrabarti (Lab)]

Does the Minister think there are any features of some services that make them completely unsuitable for outsourcing? I am thinking of life and death matters such as firefighting or test and trace; extremely vulnerable service users in prisons or secure academies; or natural monopolies such as polluting water companies.

[Lord Greenhalgh (Con)]

As the Fire Minister, I certainly recognise the importance of the delivery of the vast majority of our fire and rescue services through people who are currently employed by local government. As a former council leader, I know there is a whole host of statutory areas where you would seek to deliver services through people who are directly employed. But increasingly there are areas where you can drive down costs through competitive tendering. That also gives in-house services the opportunity to compete with the market to see whether they can deliver those services more effectively. Competition does drive down costs and increases the quality of the services provided.