By Mark Smulian | 21 June 2011
More than half of all councils have taken outsourced services back in house, or are considering this step, a survey for Unison has found.
The main reasons were improved efficiency, dissatisfaction with contractors’ performance and a desire for easier ‘joining up’ of council services, according to the UK-wide survey, carried out by the Association for Public Service Excellence.
APSE found more than 50 examples of such ‘insourcing’. Greater flexibility and improved staff morale were also important factors in these decisions.
Unison general secretary Dave Prentis said: ‘This survey exposes the real danger of outsourcing services to private companies.
‘Councils currently seeking it out as an easy option must realise that it will cost them more in the long run.’
APSE gained 140 responses from councils, of all types and political colours. Of these, 57.3% had taken a service back in house or were thinking of doing so.
The most common area for insourcing was environmental services, such as recycling, grounds maintenance and refuse collection, although examples were found in most service areas.
Some councils cited policy rather than financial objectives for insourcing, where they said direct control allowed them to more easily join up services at neighbourhood level, or to meet strategic goals such as action on climate change.
APSE said responses to its survey cast doubt on the efficiencies often claimed by supporters of outsourcing because of the inflexibility of the legal contracts involved.
‘Authorities that had entered into large scale long-term strategic partnerships had found it difficult to negotiate efficiencies, as they were contractually committed with private sector partners who did not want this to impact on their profits,’ the report said.
