A reader-recommended video: “Who’s spending Britain’s billions?
As the International Tax Review confirms rumours of plans to cut Britain’s corporation tax rate (‘a race to the bottom’), Jacques Peretti opened this video by reminding us that for some years the 99% have been required to tighten their belts.
In this film he focussed on what is happening behind closed doors in Britain; he found that local councils across the UK are signing contracts with management consultancy firms who can take a percentage of any savings they find. Luminaries such as McKinsey, Serco, G4S and Capita were named.
There are 36 articles with Capita in the title on our database and many more references in other texts.
The earliest: from 1999 there had been serious computer failures in public sector in programmes designed by several providers, including Capita. In 2004, schools were forced to close because of delays to a database to vet teachers, run by Capita. In 2005, Capita’s software was said to be responsible for the failure of a government scheme for allocating school places. In 2006: Computer Business Review reported that Capita’s chairman had resigned after the discovery of secret loans to the Labour Party from whom the company had received a number of very lucrative contracts.
The latest: in August this year a Solihull reader alerted us to a Pulse magazine report on serious shortfalls in Capita’s primary care support services. Medical practices are facing delays as patient records and supplies are missing and payments made late. Alex Matthews-King, who wrote the article, reported on the situation, using data published in April 2016 – two years after the private company Capita won the £330m contract to provide primary care support services, with a budget cut of 40%. A search will find many analyses of Capita’s performance for local authorities, Birmingham in particular.
Taking self-regulation to a new low
Last year the outspoken Audit Commission – the ‘watchdog’ scrutinising council spending was disbanded. David Cameron said that a critical mass of citizen watchdogs would become a new force for accountability. He hoped a ‘whole army of effective armchair auditors looking over the books’ would act as a check on ‘waste’, but this army has not appeared, as the BBC pointed out.
Commercial confidentiality hides information about the use of taxpayers’ money
Peretti reveals that hundreds of the millions of taxpayers’ pounds spent on these contracts are covered by confidential deals and very little detail is known about them. Many readers will not be surprised to hear allegations about consultants who – the blurb says – ’leech off local councils and bleed them dry’. For years they have watched the outsourcing of public services which don’t produce the promised savings and heard councillors justifying the use of these expensive and sometimes inefficient assistants.
Peretti’s final question? Does the public deserve to know how those charged with managing Britain’s billions are spending them?