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GMB accuses government of failing to learn lessons

A STAGGERING £95 billion worth of public-sector contracts were offered to private companies last year despite Carillion’s collapse, research reveals today.

New statistics released by union GMB show the total value of outsourcing contracts shot up by 53 per cent throughout 2017-18.

The union said the findings show the government has learned nothing a year on from the collapse of engineering giant Carillion.

Services company Capita was one of the biggest to win from the huge rise, receiving almost £1.4bn in works contracts.

This is despite the company being issued a profit warning for its volatile stock market pricing.

Similarly, Interserve, which has also been rocked by financial instability over the past year, gained £450 million in public contracts.

Thousands of workers and apprentices lost their jobs after Carillion went into liquidation last year with debts totalling nearly £7bn, while many small firms were badly hit.

In response to these findings, the GMB has launched a new campaign called “Go Public,” which seeks to oppose privatisation and hammer home the potential risks involved in outsourcing vital services.

GMB national secretary Rehana Azam said: “Despite the tragic fiasco of Carillion, the government hasn’t learned its lesson.

“The Conservatives are hell-bent on privatisation and outsourcing our public services, regardless of the consequences.

“What other explanation can there be for this huge increase on outsourced contracts in the year Carillion went bust and when other outsourcing giants look like they’re on life support?

“GMB will demonstrate just what a bad deal the public is getting by this government on public services.”

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