Thursday 30th May, 2019
According to a report by the Association for Public Service Excellence (APSE), 77% of UK councils planning to bring services back in-house this year.
“What we are seeing is a 40-year experiment in public service delivery being put under the microscope,” says Tom Sasse, a senior researcher at the Institute for Government.
According to the report, 78% of local authorities believe insourcing gives them more flexibility, two-thirds say it also saves money, and more than half say it has improved the quality of the service while simplifying how it is managed.
Although in some cases councils have opted to insource because the provider walked away from the contract.
“Insourcing allows councils to regain control over local services,” says Mo Baines, head of communication and coordination at APSE and author of the APSE report. “Fragmented service delivery through outsourced contracts has failed to deliver on price and quality. It is no longer a viable option.”
Sasse adds: “In the 1980s, there were typically 20% cost savings by outsourcing services like waste collection, but those efficiencies have now been made.”