Thursday, 23 September 2010

Can a Council Outsource all Services?

Suffolk County Council has revealed plans to Out Source all of its services, they claim to be able to save approximately 30% of their 1.3bn pound budget. This will basically transform the council from a service provider to a contract manager.

When I first heard this I suspected it could simply be a headline grab and that there was even a chance that it was simply some grandstanding aiming at making a point to central government however the more I think about it the better it actually seems, after all, why do we feel that the government should be a service provider? I agree that the government have a duty for order and protection of the most vulnerable in society but have we become so convinced over the years that this can only mean direct service provision that we have stopped thinking there is any alternative?

Obviously the Union (Unison this time) have warned that this will lead to danger for the poorest members of society and there will be massive redundancy of the staff, but as I have mentioned before I would take more notice if the unions said something different just occasionally, but I doubt that is happening anytime soon.

Anyway, I do agree that this is a highly risky strategy and if Suffolk are to go ahead with this they really need to ensure that the contracts are well written and contain very clear service level agreements. I also hope that the government keep a close eye on it as although I doubt it will be a fit for all areas it will certainly be a very interesting model.

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