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

  • Deadline 2026/10/06 Ford – Southampton Community Fund

    Application deadline:  6 October 2026 The aim of this grant programme is to fund skills initiatives for young people aged 11-25 years old, living in Southampton and Eastleigh. Non-profit community […]

  • Why research should be from the ‘bottom up’

    Historically, research has been ‘top-down’ meaning researchers have chosen the topics they would like to study, either based on personal interest or influenced by strategies set by local research organisations. Sometimes this is […]