Overview

This bill aims to increase public ownership and control of public services. It mandates consultation before outsourcing or privatization, prioritizes bids from public and not-for-profit entities, and improves transparency and accountability in public service contracts.

Description

The bill introduces several key measures. Firstly, it requires relevant authorities to consult with the public for at least 28 days before outsourcing or privatizing services, allowing for input on whether services should remain publicly provided and if assets should remain publicly owned. Secondly, it mandates consideration of internal bids from within the public sector before external procurement. Thirdly, it prioritizes contracts with public sector bodies, not-for-profit entities, and social enterprises, guided by a public benefit consideration. This is facilitated by the Secretary of State creating a list of qualifying organizations. Fourthly, all public service contracts valued over £50,000 must include break clauses, allowing for re-tendering if service quality is poor (measured by a complaints threshold set via regulations). Finally, the bill enhances transparency by requiring public access to bid details and contract information and extends the Freedom of Information Act to companies providing public services.

Government Spending

The bill states that any expenditure incurred by the Secretary of State, Ministers, or government departments, as well as any increase in payments due to this Act, will be met from public funds. Specific figures are not provided.

Groups Affected

• Relevant Authorities: (defined as contracting authorities under the Public Contracts Regulations 2006) will face increased obligations regarding consultation, internal bids, contract terms, and transparency.
• Public Sector Bodies, Not-for-Profit Entities, and Social Enterprises: These groups are prioritized in the bidding process for public service contracts.
• Private Companies: May face reduced opportunities to win public service contracts and will be subject to increased transparency and accountability measures under the Freedom of Information Act.
• The Public: Will have increased opportunities for consultation and access to information regarding public service contracts.

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