- Chief Secretary to the Prime Minister announces new Public Interest Test to be applied before renewing expiring government contracts to prioritise long-term value.
- New approach to procurement signals ambition to end the era of outsourcing by default, as government looks to bring cleaners and security staff in-house.
- The move follows action taken previously by Chief Secretary to the Prime Minister Darren Jones to establish the National School of Government and Public Services to move away from outsourced training contracts.
The government has published new guidance to provide a route for bringing key services back in-house and get the absolute best results for taxpayers.
While the government will continue to work collaboratively with a whole range of suppliers to the public sector, the new Public Interest Test will ensure departments and officials look beyond short-term pricing to focus on long-term service quality and public value for contracts over £1 million.
Under the new guidance, central government departments with over £100 million in annual contract spend will create five-year roadmaps to rebuild their in-house capabilities, reversing years of outsourcing that eroded the state’s capacity to deliver its own services.
This follows action on outsourcing taken by Darren Jones, the Chief Secretary to the Prime Minister, in establishing the National School of Government and Public Services, to move away from outsourced government training contracts.
We have accelerated this transition and will not be taking forward the Learning Framework 2.0 procurement, with our new in-house model reducing reliance on external spending and providing better value for the taxpayer.
Chief Secretary to the Prime Minister Darren Jones said
I want to end the era of ‘outsourcing by default’ and build stronger in-house capacity. The British people deserve value for their money – not just the cheapest, short-term option which may not deliver quality in the long-term.
By introducing this Public Interest Test, and leading the way by looking to bring our cleaners and security staff back in-house when major contracts end in 2028, we are rebuilding our national capacity to deliver high-quality services the British people deserve.
Chancellor of the Exchequer Rachel Reeves, said
I am determined to change the UK’s economic model so that public services are run in the public interest with more workers brought back in-house.
For too long outsourced workers who play a vital role in public services have been overlooked and treated differently. This government was elected to insource more public services and that is what we are doing.
Cabinet Office Minister Chris Ward said
This government promised to deliver a wave of insourcing – and that starts in our own buildings and with our own staff.
Bringing the government’s cleaning and security services back in house is just the start, and – alongside a new Public Interest Test – shows that under this government, the age of outsourcing is over.
The work will build a fairer, stronger Britain by making sure taxes are spent wisely on services people can rely on.
The government is looking closely at how major contracts are managed to set a fresh, reliable direction for the future, and is fully committed to driving up standards, supporting working people, and delivering public services that work for everyone.
When current contracts are coming to an end, officials will thoroughly check if those services should be run directly by the public sector instead of automatically hiring private companies.
Subject to completing a Public Interest Test, the Cabinet Office will look to bring building management services, including cleaning and security staff, back in-house as soon as possible, with this process beginning when current contracts end in 2028.
Applying the test to these services will cover contracts across 83 government buildings, and could mean the government opting to take control of frontline workplace services to strengthen our capability and operational security while securing value for money.