Is it right to privatise public sector services?
The move by the Conservative controlled Essex county council to bring in IBM to manage public sector services in the region has opened a potential can of worms for the UK authorities. Is it right to put public sector services out for tender? Or should taxpayers be left to foot the cost from day one?
The problem with public sector services in the UK is the fact they have become bloated over the last decade and are now the largest employer in the country. If a third party is able to come in and trim the fat from the public sector, saving taxpayers money along the way, then surely there is nothing wrong with this move?
While many unions will demand job security and security of services in the region served by Essex county council, the fact remains that if public sector services in the UK were "up to scratch" then there would be no need to bring in private sector companies. Whether this move by the Essex county council is something which will be copied around the country remains to be seen but the UK government has in many ways used the public sector to massage employment figures and is now potentially paying the price.
Share this..
Related stories
Northern Rock swallows another £3 billion of taxpayers money
In a rather complex situation it has been revealed that Northern Rock's independent off-balance-sheet funding vehicle has granted an extra £3 billion of taxpayers money to cover mortgages which the bank was unable to transfer. In simple terms the cushion between the money Northern Rock owes it's off-balance-sheet funding vehicle, Granite, and the amount of the mortgages left on the books has dete...
Read MoreLoan shark charged 2500% interest on £500 loan
Robert Reynolds, a loan shark from the North East of England, today escaped jail despite being found guilty of charging interest rates of up to 2500% on a customer who lent just £500. The husband and wife in question borrowed just £500 from Reynolds and were forced to pay back nearly £90,000 over a seven-year period.
Due to missed payments the interest rate charged on the loan pe...
Insurer’s urge Consumers to hide Christmas Gifts
The Association of British Insurers (ABI) has urged Christmas shoppers to hide gifts in the run up to the festive period. This comes after insurance claims last December reached £35m, with 23,000 burglaries reported in relation to stolen Christmas gifts. The most common targets have included parked cars with gifts left inside as well as homes where gifts are left on show or unattended, while...
Read MoreAlistair Darling challenged to curb city remuneration
The last few days have seen the Chancellor of the Exchequer Alistair Darling move out of the shadows and take up the mantle regarding excessive pay in the city and huge bonuses. However, Alistair Darling was today challenged to rubberstamp the creation of a new "High Pay Commission" which would effectively oversee the City of London and regulate remuneration packages and bonuses. So how did the Ch...
Read MoreWhen will UK savings rates return to former levels?
With UK base rates currently at a 0.5% and the vast majority of savings accounts offering limited interest on deposits, savers in the UK are starting to wonder as and when savings rates will return to former levels. It is easy to forget, in the midst of the current recession, that UK base rates were around 5% less than two years ago and have fallen by 90% in the meantime. Unfortunately, even thoug...
Read More