Public contractors face tax scrutiny – FT.com

Financial Times

Financial Times (Photo credit: henry…)

This is a really interesting story in the FT. Check it out!

Public contractors face tax scrutiny – FT.com.

It looks like the heat is being turned up on the providers of public services, in the UK. Personally, I think that there will be little public sympathy for these organizations. For me, there is not enough competition for public sector services, with small firms being excluded unreasonably. Of course, if you look at the Cabinet Office web site, they will try to convince you that they have done an outstanding job…

What do you think?

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4 responses

  1. Would I have any support if I suggested that a large part of the problem is the size of the contracts. I realise that there are problems when dealing with single supply situations but most can be broken down – some can be more than broken down but can be based on local need. There is, of course, the usual arguments about the advantages of collective buying but in my experience these are outweighed by the lack of scrutiny inherent in any large contract to any large supplier.

    Rodney WIllett (although wearing my Think Local hat)

    • Rodney, many thanks for sharing your views here. In my view, there is enormous bias in public procurement in favor large suppliers of commodities, services and outsourcing, especially in consulting. Smaller, specialized and indeed localized services could provider a more cost effective and customized service but public procurement under the control of the Cabinet Office requires huge transformation to match Best Practice in the Private Sector. Most importantly, the big consultancies and outsource providers have very effective lobbying…..

  2. Will this include the Big 4, McKinsey’s, Bain and Co, IBM Global Services, BT Global Services and BAe Defence Systems who David Cameron meets with practically more than anyone else?

    Will it include Liberata and the Big 4 outsourcing subsidiaries, Capita PLC, Serco PLC, Vangent, Vertex, T-Systems, Hitachi Consulting, Sitel, Convergys, Jarvis PLC, Balfour Beatty, A4E, Reed in Business, JHP Training, G4S (who are increasingly taking on policing duties including investigative work), Mitie PLC, Rentokil/Initial and other large FM companies.

    If not’ who is actually going to be scrutinised. or is this yet another exercise in clamping down on little people?

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