Central and local government spending with charities has stagnated in recent years, while private sector procurement has increased, according to a new report from the Institute for Government (IfG), available via this link. In particular, the report says that government spending with large outsourcing specialist firms such as Capita, Carillion and Amy (and, we imagine, Interserve) has increased greatly in recent years.

The IfG report says many charities are effectively subsidising public services by running a deficit on statutory contracts and says that the largest charities are running the biggest deficits. “In recent years, a number of charities have closed due to losses on government work, most notably 4Children and the Lifeline Project. Like Carillion, both had grown quickly by winning contracts but were unable to generate sufficient returns to service the debt they had incurred to support their expansion.”

The main recommendation the IfG makes is that the government should collect more accurate data on its procurement spending. The report says current data is poor and that better data will enable the government to make better spending decisions, will lower prices, improve accountability, create new markets and expose corruption. It calls for the government to appoints a chief data officer “as a matter of urgency”, who should develop a national data strategy which will include a plan for publishing usable data for every stage of the contracting process.

You can read the full article by clicking this link.

Share This Story, Choose Your Platform!

About the Author: actionhants

Quick Links

Recent Posts

  • Inclusion Week 2026: If not everyone is feeling included, we still have work to do

    National Inclusion Week on 14-20 September gives us a chance to pause, reflect and be honest about what inclusion means in practice. For us, this means celebrating progress while also […]

  • Deadline 2026/09/30 – The Austin and Hope Pilkington Trust

    Application deadline:  30 September 2026 THE AUSTIN AND HOPE PILKINGTON TRUST (ROUND 4, 2026) – revenue grants of £5,000 are available for UK charities with an annual turnover of over £1 […]