Companies that provide critical public services will have to draw up “living wills”, to prevent taxpayers being saddled with the cost if another major outsourcer such as Carillion collapses, under plans outlined by the government.
The Cabinet Office unveiled a series of proposals designed to reform government procurement in the wake of Carillion’s failure, which has cost the taxpayer an estimated £150m.
They involve greater transparency by public services providers and a promise that outsourcing will act as a “force for good”, with the government required to consider social and economic benefits when awarding contracts.
But perhaps the most eye-catching measure is the creation of “living wills”, similar to those that banks were forced to draw up in the wake of the financial crisis.
