Are local authorities still outsourcing their services?
Despite the fact that a number of local authority service providers have stepped forward with concerns about the major cuts in the UK public sector budget, leading outsourcing company Capita has indicated that business is still fairly strong and many local authorities continue to outsource their services. So how long can this continue for?
While there is no doubt that there are potentially enormous cost savings available to local authorities by outsourcing a variety of their services, the fact is that there will be less money in the short to medium term and increased outsourcing cannot continue forever and a day. There is no doubt that we will see a reduction in services in the short to medium term even if local authorities in the UK continue to attempt to squeeze as many savings out of their budgets as possible.
The UK government has already backtracked on a number of local authority based promises with regards to refuse collections, etc due to the fact there is no funding available to improve and increase services in the short term. Whether this will change once the UK financial position and budget deficit have been tackled remains to be seen but the lack of funding in general may see David Cameron having to backtrack and potentially delay a number of promised changes mentioned in his election manifesto.
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