New measures introduced to help suppliers post-Carillion

Suppliers will be supported under new proposals aimed at rebuilding trust in outsourcing Government contracts following the collapse of Carillon.

The collapse of the construction giant in January prompted calls across the industry for an overhaul of the procurement system and fairer payment terms.

In a speech at the Reform think tank, Cabinet Office minister David Lidington said: “We are determined to build a society where people from all parts of our country can access the best public services, and for those services to run efficiently and smoothly for them and their families. Whether that service is delivered by public, private or voluntary sectors, what matters is that it works for them and their everyday needs, while providing value for money for the taxpayer.

“And whether it is operating our call centres; building our railways; or delivering our school meals – the private sector has a vital role to play in delivering public services, something this government will never cease to champion.”

The new measures will extend the requirements of the 2013 Social Value Act to level the playing field for mutuals, co-operatives and social enterprises bidding to win government contracts.
The government also said it will use its purchasing power – some £200bn is spent per year on private companies providing public services – to challenge its major suppliers to do better on equality and diversity.

Lidington also announced further measures, including requiring key suppliers to develop ‘living wills’ which will allow contingency plans to be rapidly put into place if needed, increased transparency for major contracts by publishing key performance indicators, improved training for government procurers, and enhanced measures to protect suppliers from cyber attacks.

Mark Fox, chief executive of the Business Services Association, said: “This is a robust and welcome challenge by the government to all those involved in the delivery of public services across the private, voluntary and public sectors.

“The challenge to the industry is to improve management practices, increase transparency and develop new arguments for the private sector to deliver public services – a challenge we embrace.
“We welcome these proposals and look forward to working with the government to create more diverse, vibrant markets which can make the most of talent from across all parts of the United Kingdom, and deliver quality public services to the benefit of the taxpayer.”