Value of outsourcing contracts increases 53%, year after Carillion collapse

Trade Unions have raised arms in accusing the government of ‘failing to learn their lesson’ after the collapse of Carillion last year.

Lifetime value of outsourcing contracts awarded in 2017-18 ‘Rocketed’. According to the GMB Union, contracts raised by 53% from £62bn to 95bn. This resulted in nearly £2bn in contracts awarded to Capita and Interserve, with both having issued profit warnings.

We know this government is hell-bent on privatisation after their increased efforts to privatise the NHS. Despite the cautions brought about by the collapse of Carillion, who managed public sector contracts to provide prison maintenance and school dinners among other services.

Rehana Azam, national secretary for GMB said: “What other explanation can there be for this huge increase on outsourced contracts in the year Carillion went bust? Especially when other outsourcing giants look like they’re on life support?”

This criticism from the GMB comes on the first anniversary of Carillion’s demise. The destruction of the service giant resulted in an estimated £150m cost to the taxpayer. Furthermore, major delays have been caused in two multi-million pound hospital construction projects. These projects, due to take place in Liverpool and Birmingham, are vital to local healthcare.

Britains largest trade union; Unite, condemn the lack of action taken on the Carillion directors. Unite assistant general secretary, Gail Cartmail, said: “It’s staggering that a year after the biggest corporate failure in modern UK history, the government continues on as though nothing had happened.”

It is clear the government need to take action, should they survive May’s Brexit vote tonight.

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