Wednesday 1 June 2011

Coalition's £56m a day bill to private companies

The coalition has contracted private companies at the rate of nearly £56.6m a day since January, according to a Guardian analysis of government documents that casts new light on the extent of Whitehall's reliance on firms to do its work.

Nearly 3,000 contracts have been awarded this year, including a burgeoning bill for the government's reforms. They include unexpected costs arising out of the coalition's "bonfire of the quangos", new Whitehall advisers for "free" schools and contracts worth hundreds of thousands of pounds to help reform GP commissioning.

The Department for Education has tendered for "lead advisers" to support its reforms in free schools and academies while the Audit Commission, scrapped by the government, has had to spend thousands more because of its stalled closure.

There are four consultancy contracts to "aid the transition" to GP commissioning, a central part of the health bill. They are collectively worth up to £300,000. The government is conducting a so-called listening exercise during a natural pause in the legislation, which was set up in response to widespread opposition.

The details emerged amid 2,849 contracts each worth more than £10,000 signed by ministers since the turn of the year, revealing for the first time the rate and pace of government outsourcing.

On average contracts are being signed at a rate of £56.6m a day. There is some evidence of a spike in spending in the runup to the end of the financial year deadline of 1 April.

This gives an absolute lie to claims that they are cutting to save money. They are cutting for ideological reasons, and placing the public purse into provate hands.

http://www.guardian.co.uk/politics/2011/may/30/coalition-bill-private-companies