The report recommends corporate governance reforms and an improved commissioning process. The TUC proposes a new commissioning model based on public provision of public services, except in cases where it is clearly shown that outsourcing is in the public interest.
In the wake of Carillion going into compulsory liquidation this report sets out the reforms needed to protect public services and improve quality. This report identifies the problems that led to Carillion’s collapse and proposes reforms to improve the quality, value and sustainability of public services.
It highlights the systemic failures of an outsourcing model that prioritises low cost over quality, and a corporate governance model that prioritises shareholder interests. These combine to encourage firms to further outsource risk, leading to a complex web of subcontractors with little transparency or clarity for where responsibility lies.
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