£14 Billion ‘wasted’ by the government on ‘botched’ outsourcing

New report shows waste of at least £14 billion based on 52 investigations by independent bodies including the National Audit Office and Parliamentary Select Committees.

The government has wasted at least £14 billion between 2016 and 2019 on poorly managed outsourcing contracts finds a report from the Reform Think Tank.

The report is based on an analysis of investigations by the National Audit Office NAO), Parliamentary Select Committees and other statutory bodies. The total value of the contracts investigated was £71.1 billion.

The Ministry of Defence accounts for 27 per cent of this waste. This includes a 17 year delay in the full decommissioning of nuclear submarines and a poorly planned army recruitment programme. This saw soldiers forced into backoffice jobs to clear an IT backlog created by an untested IT system created in partnership between the army and Capita.

Other examples include the vastly expensive liquidation of Carrillion, which cost the government at least £148 million as well as involving the time and resources of 14 government departments and public bodies.

Also the Department for Education continued to give Learndirect £105 million after the programme was rated ‘inadequate’ by Ofsted. This should have led to the funding being withdrawn.

A third of the government’s annual budget is spent on outsourced services, at a total of ££292 Billion.

Reform is now calling for an independent regulator of the outsourcing sector which – unlike the NAO or Select Committees would have the power to enforce change and impose sanctions on failing providers.

Senior Researcher and Reform procurement lead, Dr Joshua Pritchard said “Our public services cannot function without outsourcing. But when it goes wrong, it’s taxpayers who end up footing the bill

“The £14.3 billion wasted as a result of poorly drawn up and managed government contracts is inexcusable.

“We need a new regulator with the power to prevent public money being squandered because of totally avoidable mistakes.”

Emma Burnell is a freelance journalist and consultant.

As you’re here, we have something to ask you. What we do here to deliver real news is more important than ever. But there’s a problem: we need readers like you to chip in to help us survive. We deliver progressive, independent media, that challenges the right’s hateful rhetoric. Together we can find the stories that get lost.

We’re not bankrolled by billionaire donors, but rely on readers chipping in whatever they can afford to protect our independence. What we do isn’t free, and we run on a shoestring. Can you help by chipping in as little as £1 a week to help us survive? Whatever you can donate, we’re so grateful - and we will ensure your money goes as far as possible to deliver hard-hitting news.

257 Responses to “£14 Billion ‘wasted’ by the government on ‘botched’ outsourcing”

  1. Yampa Valley Strain

    Yampa Valley Strain

    […]The information mentioned within the report are a few of the best available […]

  2. Danky Doodle Strain

    Danky Doodle Strain

    […]check below, are some absolutely unrelated internet websites to ours, nonetheless, they are most trustworthy sources that we use[…]

  3. mushrooms for sale

    mushrooms for sale

    […]Here is a superb Weblog You may Obtain Fascinating that we Encourage You[…]

  4. Coast Cubensis

    Coast Cubensis

    […]check below, are some entirely unrelated web sites to ours, nevertheless, they are most trustworthy sources that we use[…]

  5. Durban Poison Strain

    Durban Poison Strain

    […]usually posts some incredibly fascinating stuff like this. If you’re new to this site[…]

  6. Coast Mushrooms

    Coast Mushrooms

    […]please check out the internet sites we comply with, which includes this a single, as it represents our picks in the web[…]

  7. Coast Mushroom

    Coast Mushroom

    […]we came across a cool web site which you could get pleasure from. Take a search should you want[…]

Leave a Reply

You must be logged in to post a comment.