Local Contact Tracing

Rachel Reeves Excerpts

Wednesday 14th October 2020 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

I beg to move,

That this House notes the consistently high performance of local contact tracing systems when compared with the centralised system established by the Government; notes the wealth of evidence that the considerable sums of public money spent so far on the national system would deliver better public health outcomes if devolved to local authorities and public health experts; and calls on the Government to extend the additional funding for contact tracing available in Tier 3 areas to all parts of the country and ensure that councils and local public health teams receive the resources and powers they require.

This Government are obsessed with a failed model of outsourcing. It is failing to reach people who come into contact with someone with the virus, it is not getting information to local councils who need to act on it, and it is wasting hundreds of millions of pounds of taxpayers’ money that could be spent on a local response using local expertise. It is not too late for the Government to change course, and I urge them to do so today.

Yesterday, my right hon. Friend the Leader of the Opposition made the case for a short, sharp circuit break of restrictions lasting two to three weeks to firmly apply the brakes on the rising infection numbers that we are seeing. A crucial aim of the circuit break is to drive down infections, but there is another purpose as well: it would buy the Government some crucial time to fix the failures in contact tracing.

The current model of contact tracing is broken and it will get worse, not better, while corporations such as Serco are allowed in the driving seat rather than local public health teams. We might ask: how bad is the Government’s approach to contact tracing?

One director of public health said:

“It needs someone with the courage to say”

it “isn’t working”, and it was described as a

“catastrophe…the very worst system I’ve…seen”.

Well, we do have the courage to say that it is not working and I urge the Government to have that courage, too.

[Andy Slaughter (Hammersmith) (Lab)]

My hon. Friend is right to highlight Serco. Does she agree that another problem with test and trace is the number of consultants being employed, with more than a thousand from one firm alone—Deloitte—that charges several thousand pounds a day for its senior consultants? Should we not be told how much it is costing and what these people are doing?

[Rachel Reeves]

My hon. Friend makes his point well. He has been a staunch advocate of transparency and value for money in the delivery of public services. The Government’s own Minister in the Cabinet Office in the other place has made those points as well, saying that the Government are spending too much money on consultants when that work could be done in-house with better value for taxpayers. I very much agree with my hon. Friend’s comments.

The minutes of the Scientific Advisory Group for Emergencies meeting from three weeks ago on 21 September, as well as suggesting a circuit break to deal with the rising infection numbers, reflected on the performance of the Government’s approach to test, trace and isolate. The minutes said that

“relatively low levels of engagement with the system…coupled with testing delays…is having a marginal impact on transmission”.

All that money spent, yet this key part of the Government’s system to keep us safe is only having a marginal impact on transmission.

[Alberto Costa (South Leicestershire) (Con)]

Does the hon. Lady not accept that this is a unique situation? This is one of the worst crises that this country has ever faced, and I invite her to assist the Government, rather than constantly opposing every measure that the Government are taking in what is an extremely challenging situation.

[Rachel Reeves]

That is exactly why I am urging the Government to use the local expertise we have in all our local authorities around the country. We should not reinvent the wheel, but use that local expertise, rather than wasting hundreds of millions of pounds of taxpayers’ money.

The Prime Minister promised a world-beating test and trace system, yet we have one that is barely functioning. We have a system that is now so broken that SAGE is saying it is making next to no difference. We are all paying the price for these terrible mistakes. The truth is that as soon as the Government looked to a privatised solution, a political choice was made about how to respond to a public health crisis.

Serco is not integrated into the fabric of any of our communities. Ministers could have spoken to the Local Government Association. They could have spoken to the Association of Directors of Public Health. Instead, they chose to speak to Serco. There is a cosiness between the Conservative Government and these outsourcing companies, despite their failures to deliver.

Let us look at Serco’s record. Last year, Serco was fined £23 million as part of a settlement with the Serious Fraud Office over electronic tagging contracts. In December, two former senior executives at Serco were charged for that offence. In 2018, Serco was fined £2.8 million after it was revealed that it was providing asylum seekers with squalid, unsafe slum housing.

One would think that whenever Serco bids for a contract, sirens would be going off all over Whitehall, except that Serco did not bid for the contact tracing contract. It was handed it on a plate, with no competition, no rigour and no transparency. Ministers may claim that it is a coincidence that hundreds of millions of pounds of public contracts have been awarded to companies with clear links to the Conservative party, including Serco. That would be a heck of a coincidence, wouldn’t it?

[Steve Brine (Winchester) (Con)]

I am glad to see the old tendency is back in the Opposition of private bad, public good. With the hon. Lady’s proposal around local authorities wanting to do more on test and trace, presumably they would not be doing it for free. They would have to be paid, and it would cost a lot of money. Presumably she has costed that. Will she just put on the record for the House at what price she has costed that?

--- Later in debate ---

[Rachel Reeves]

Let us be clear: there are places that are doing this—for example, Wales, to which I shall come later—and the difference between what we see with Serco and what we see when it is done in-house is that with the latter more people are being traced, which means more people are going into self-isolation and a slower spread of the virus. That protects all our lives and means that our economy can get back on track. The Government are the ones who are wasting hundreds of millions of pounds of taxpayers’ money on a system that is failing—a system that is letting us down.

Outsourced contact tracing is part of £11 billion of public procurement in this pandemic that has not gone out to competitive tender. The Government do not even know whether they are getting value for money because they do not even bother to test it in the marketplace or against what local authorities can deliver. For the outsourcing companies this is a gold rush. I have called for the National Audit Office to investigate, and I look forward to its findings later this year. I am sure that all Members will look forward to the findings from that investigation so that they can check for themselves that they are getting the value for money that they seem to believe they are getting.

One issue that I hope the National Audit Office addresses is the murky subcontracting of the Government’s contractors. My hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) asked the Government how many companies Serco has subcontracted its work on contact tracing to; the answer was 29 companies other than Serco. The amount subcontracted to other firms represents 80% of staffing. Who are these businesses? The Government have refused to say—because Serco decided that it was too commercially sensitive. We now have a Government that outsource even decisions to private outsourcing companies. The situation is frankly ludicrous.

It has taken investigative journalists, whistleblowers and the Good Law Project to start to piece together the jigsaw. Why the shyness? Presumably because if the Government revealed what was going on, it would not stand up to public scrutiny. One business to which Serco has subcontracted work is Concentrix, which was previously involved in scandals relating to tax credits.

In September, it was reported that another Serco subcontractor, Intelling, was paying bonuses of £500 to staff despite poor contact rates. One contact tracer employed by Intelling was reported to have said:

“I couldn’t believe it when I got my bonus. It’s an absolute disgrace…I’m getting paid and now given a bonus for doing nothing…I really want to help and be involved and make calls and be useful. But I’m not being given anything to do. The system is on its knees.”

This evidence is devastating because it shows that people who should have been contacted are not being contacted and that, far from what the hon. Member for Winchester (Steve Brine) said, the Government are handing out money to companies without getting the value for money that we should all be demanding.

I challenge the Minister today to name all Serco’s subcontractors and to publish details on how much they have been paid and for what. I will give way to the Under-Secretary of State for Health and Social Care, the hon. Member for Bury St Edmunds (Jo Churchill), if she would like to tell the House that information. This is revealing: either they do not know, they do not care, or they will not say. I fear that the more we know about what is happening under the bonnet in contact tracing, the worse it gets.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

I fear that the hon. Lady may have inadvertently misled the House earlier. She told the House that the Government did not speak to local government authorities throughout the country, but on 22 May, many months before Labour even started to talk about involving local authorities, the Government provided £300 million for local authorities to set up local test and trace services, so what she said at the Dispatch Box was patently untrue and she should apologise.

[Rachel Reeves]

Local councils are desperate to take on the responsibilities from Serco. They are begging the Government: “Hand over the resources and the responsibilities, because we can do it better than you.” I will come later to the issues relating to what the Government are doing with tier 3 compared with the other tiers.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

My hon. Friend and parliamentary neighbour is making an excellent speech. If local authorities undertake similar procurement, they have to utilise best value and have a social value framework. If they conducted procurement as the Government have, the Government would bring in commissioners. This is an absolute scandal.

[Rachel Reeves]

I could not agree more. My hon. Friend will know that in Leeds, which we both have the privilege of representing, with the expertise we have on the ground, our local authority and director of public health could be doing a much better job than Serco is doing. Indeed, when we have had local outbreaks in Leeds, it has been the local authority going out and knocking on doors to ensure that people know what is going on—something that Serco cannot or does not do.

[Mr Clive Betts (Sheffield South East) (Lab)]

The hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) said that £300 million had been given to local authorities to do tracking and tracing. My recollection is that it was not given for that purpose. It was given to local authorities to help them develop outbreak control plans and set up outbreak control committees. There has never been any general amount of money given to local authorities to do tracking and tracing. That has been a demand, but it has not been responded to by the Government.

[Rachel Reeves]

I thank my hon. Friend the Chair of the Housing, Communities and Local Government Committee, who is better informed than most in the House.

In the last Parliament, I had the honour of chairing the Business, Energy and Industrial Strategy Committee, and it was a privilege to see the work of so many businesses, which are the backbone of our economy. I also chaired the inquiry into the collapse of Carillion—a house of cards built through outsourced contracts from Government. When I see the endless contracts and the enormous sums of money handed over today to outsourcing companies, I cannot help but conclude that the Government have learnt none of the lessons from that collapse and that failure. It makes me really angry that, despite all the work done and all the evidence presented, the same thing is happening again.

There are clear alternatives, and there always were. The World Health Organisation issued clear guidance for contact tracing, which states:

“Critical elements of the implementation of contact tracing are community engagement and public support”.

That should have been the model for England, so why was it not? We do not need to travel halfway round the world for a successful alternative. We can look to Wales—a model where contact tracing is devolved to local communities. In the most recent figures for Wales, of the 2,190 positive cases that were eligible for follow-up, 91% were reached and asked to provide details of their recent contacts. Of the 10,516 contacts, 83% were successfully contacted. That is in stark contrast with the Government’s Serco model, in which just 69% of contacts were reached—a figure that is getting worse week in, week out.

Perhaps if the Welsh Government were a private outsourcing consultancy, the Government would have paid them a small fortune to take over the system in England. Instead, the Government turned to outside consultants, paid £563,000 of public money this summer for producing a report on test and trace—a report that we have all paid for, but none of us has seen. The Government could have learned valuable lessons for free. They could have gone to Mark Drakeford rather than to McKinsey.

Knowing all this, my hon. Friend the Member for Leicester South (Jonathan Ashworth) and I wrote to the Health Secretary in August, urging him not to renew Serco’s contract and to put public health teams in charge. However, Serco’s contract was not terminated—it was extended. Out of necessity, with Serco tracing failing, many councils have had to create their own tracing systems with a fraction of the money. The Secretary of State for Housing, Communities and Local Government knows that this is a problem. On Sunday, he said that local councils are

“bound to be better than Whitehall or national contact tracers.”

That begs the question, why not give those resources, powers and responsibilities to local government if even the Secretary of State realises that they would do a better job and deliver better value for money? Instead, the Government have wasted over half a year on a system that is failing, with mounting evidence of that growing by the day.

It is quite simple. As Liz Robin, director of public health in Peterborough, has pointed out, people were always more likely to answer a call from a local phone number, and unlike national contact tracers, local tracers are able to knock on doors and visit people if they are not responding. Peterborough has managed to contact between 80% and 90% of the cases that the national tracers were not able to. As the Mayor of Greater Manchester, Andy Burnham, said:

“Council leaders in many regions have been relying on volunteers but this cannot continue. It can’t be done on the cheap—councils have to be given more resources to employ expanded, trained teams.”

The resources need to be shifted from Serco to our local authorities.

The Minister will argue, I am sure, that local and national teams are working perfectly well together, but if she were to show some humility and some honesty, she would admit that it is clear that local services are delivering better. In fact, the national system is hugely flawed, in that it is totally disconnected from the communities while hoovering up most of the resource. This week the Government said they would provide funding to councils for contact tracing in areas with a tier-3 alert level, but what about tiers 1 and 2 to stop them ending up in tier 3? It is a bit like a fire brigade handing out smoke alarms to a family whose house is already ablaze. They needed that support some time ago. If they had had it, they might not have ended up in this situation.

[Matt Rodda (Reading East) (Lab)]

Will my hon. Friend give way?

[Rachel Reeves]

I will make some progress and conclude to give others time to speak.

Ten years of austerity, fragmentation and privatisation have left our country less resilient to face a pandemic like this. Public health budgets have been slashed by cuts from central Government. Sustained new investment is needed to rebuild our public services during this crisis and beyond. The Government have squandered enormous sums of money on a centrally dictated outsourcing model, and Ministers should hang their heads in shame because it has failed.

The consequence of this failure means we are not getting the virus under control after months of sacrifice by the British people, so my message today is simple: sack Serco and give those resources to local councils, save lives, protect livelihoods and learn these lessons before it is too late.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Before I call the Minister to respond, I give notice that we will start with a time limit of five minutes for Back-Bench speeches, and it is likely to be reduced quite soon.