Labour will call a halt to the “outsourcing racket” exposed by Carillion’s collapse, by tearing up procurement rules to make the public sector the default choice for providing government services, Jeremy Corbyn has revealed.
Carillion’s collapse has emboldened Corbyn to press home his message that Labour rejects the “dogma of privatisation”.
“We will rewrite the rules to give the public back control of their services,” he told the Guardian shortly after clashing with the prime minister over the issue in the House of Commons.
“Theresa May exposed the failure of the outsource-first ideology at prime minister’s questions when she said the government was ‘a customer’ not ‘the manager’ of Carillion. I’m sorry, but if these are public contracts we should be the manager and not have a middleman like Carillion creaming off the profits.”
In a radical departure from the cross-party consensus of the past 25 years, Labour would impose strict conditions on local authorities and Whitehall departments that would be likely to drastically reduce the use of private-sector contractors.