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Government procurement ''is not working''

PublicService - The government's current procurement policy is helping large private firms dominate public service markets, creating dependency and giving a small number of providers an enormous amount of power over the buyers – national and local government, according to Peter Holbrook, CEO of Social Enterprise UK.

In response to the Public Administration Select Committee (PASC) report on government procurement, Holbrook said: "Smaller providers like social enterprises – organisations that reinvest profits and are answerable to communities – are squeezed out of contracts; their expertise and strong track record of helping society's most vulnerable people lost. We need a mixed market where providers of all sizes can play their part."

Holbrook said he was "very pleased" that the committee had picked up on what was happening in outsourced public services. The committee had said it was "astonished" at some of its findings, but it's unlikely that the general public will be astonished, Holbrook claimed. They have heard too many stories about delivery failure, including the way that G4S and Serco and other giant businesses are treating taxpayers' money.