Public Sector Insourcing

5. What steps he is taking to help increase insourcing within the public sector.

As I set out to the House yesterday, this Labour Government are ending the age of outsourcing. We will introduce a public interest test to require all Departments to assess whether a service can be better delivered in-house. We will also require all Departments to publish insourcing strategies setting out how they will make greater insourcing a reality over the medium term. Taken together, that is a step change in how we approach this, and I am proud that a Labour Government are delivering it.

Mr Speaker, I wish you a happy Warwickshire day and a happy St George’s day.

Nuneaton residents are concerned about the performance of Capita since it took over the civil service pensions. I know these concerns are shared across the House, as we have just heard some of the horror stories coming into many inboxes. Those residents will therefore be surprised to see that the Government have recently agreed a £900 million, 10-year deal for the same company to take over the civil service payroll contract under the Synergy programme. Does my hon. Friend agree with me that maintaining current insourcing is the only way to ensure value for taxpayers’ money and a decent level of service for residents?

The Paymaster General and Minister for the Cabinet Office updated the House on this yesterday, and he has answered a number of questions on that issue. I do agree that insourcing can play a key role in delivering better value for money and higher-quality public services, which is one reason why we are introducing the public interest test and ending the age of outsourcing.