Government contracts with “profit”-driven firms must end, says Labour policy chief

Government should focus on working with mutuals and cooperatives rather than outsourcing to private firms, says Jon Cruddas


By Sarah.Aston

16 Feb 2015

Private sector companies driven by “corporate profit” should not be given government contracts, the Labour policy coordinator Jon Cruddas has said in a new book.

Setting out his plans for Labour in Blue Labour: Forging a New Politics, due to be published next month, Cruddas says government should focus on forging ties with “ethical enterprise” rather than outsourcing services to private firms.

In a chapter entitled ‘The Common Good in an Age of Austerity’, which has been seen by The Telegraph, Cruddas writes: “[There should be] no more outsourcing of relational services to those parts of the private sector that are driven purely by corporate profit rather than a social purpose.

“It is quite staggering that some £10bn of public contracts – of taxpayers’ money – are allocated to some 20 private companies.”

He adds: “Rather, we need to forge cooperative ties with ethical enterprise – such as cooperatives, mutuals, and social businesses.” 

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