The great Civil Service sell-off: Dozens of services and 75,000 staff set to be transferred to private sector
Its ironic but the number of public sector workers increased significantly when we bailed out Lloyds and RBS. Now major reverse traffic is being planned from the centre in terms of the activities profiled in this story. I think there is a very significant need for some mutualised rural proofing to accompany these sell offs – not so much of the “nudge” team who are unwitting leaders of this charge, but when we get to bigger chunks of the civil service, who are likely to be directed more by profit than service as these reforms go forward. we all know it is more expensive to deliver services in rural areas, ergo…..
Ministers are preparing to spin off “dozens” of state-owned services into independent companies in what could be one of the largest privatisation programmes since the 1980s.
Under plans being rolled out by the Cabinet Office, millions of pounds’ worth of state-owned services will be spun off into independent companies – jointly owned by private-sector investors and their employees – within the next two years. Eventually as many as one in six civil servants – or 75,000 staff – could be transferred into the private sector with the Government maintaining a minority stake and offering long-term contracts to the new companies to encourage investment.
Today the Cabinet Office minister Francis Maude will announce that the Government’s Behavioural Insights Team – known as the “nudge unit” – will become the most high-profile area of Government to be “mutualised”.
It will be turned into a profit-making joint venture with private companies being invited to bid for a stake of up to 50 per cent in the new business. Under the plan, the Government would guarantee contracts for a number of years – with the business free to sell its services outside Whitehall.