A priority for this Government is reforming procurement and how we deliver our public services. For too long, successive Governments have been, at best, ambivalent about whether services are delivered in-house and, at worst, have maintained a policy that is essentially “outsourcing by default”.
We are drawing a line under that approach. A core principle of our reforms is that the way we deliver public services should help to build a fairer economy and to rebuild the capacity of the state.
As part of this, I am proud to introduce the public interest test. Under this new approach, all Government Departments will formally assess whether their services can be delivered more effectively in-house. If not, a clear explanation should be published to ensure transparency and justify any decision to outsource.
We also recognise that decades of outsourcing have eroded the state’s capability to deliver a wave of insourcing. So this Government are taking steps to rebuild these required competencies. That is why Departments will, for the first time, develop and publish robust insourcing strategies.
These medium-term road maps will set out exactly how they plan to develop the skills and capacity needed to make insourcing a reality. We will first embed this approach across Government Departments, but our ambition spans the entire public sector. It is our intention that, over time, all public services—no matter where they are delivered—are evaluated with the same rigour, accountability, and commitment to public value.
To lead by example and put the principles into practice, the Cabinet Office will look to bring its building management services, including cleaning and security staff, back in-house as soon as possible, subject to completing a public interest test. This will begin when current contracts end in 2028.
Applying the test to these services will cover contracts across 83 Government buildings—including Downing Street and the Cabinet Office—and would mean the Government opting to take control of frontline workplace services to strengthen our capability and operational security while securing value for money.
I am proud of the steps this Government are taking to rebuild our public services and return them to public hands.
[HCWS120]