It reckons that more than 拢22bn could be saved if the public sector handed over more work to private contractors.
The report, Open access: Delivering quality and value in our public services, says that opening social housing management to more competition could potentially save 拢675m. Just 2% by value of the market for the management of the UK鈥檚 5.3m social housing units is open to independent providers, it says.
Less than half of waste management, recycling and street cleaning services is carried out by private sector contractors. The report authors reckon at least 拢192m could be saved by more privatisation.
The report is described as 鈥榠ndependent research鈥� and written by Oxford Economics. The authors admit that they relied on data and anecdotes supplied by private sector outsourcing companies because 鈥渢here is as yet little published information on the scope and performance of services delivered by independent providers鈥�.
They conclude that, across 12 public services, include local government, healthcare and police support services, 鈥渁verage savings of at least 11% were possible when a service was opened up to new providers and there was a range of savings between 10-20%鈥�.
According to the CBI: 鈥淎pplying the same principles and calculations across the estimated 拢278bn of public services, which the CBI believes could feasibly be fully opened up, would deliver savings of 拢22.6bn.鈥�
For example, 86% of prison management and 73% of school catering is still in the public sector.
CBI director-general John Cridland said: 鈥淭his report sets out a compelling case for the government to go further and faster in opening up public service markets.鈥�
Interserve CEO Adrian Ringrose, who chairs the CBI Public Services Board , said: 鈥淏usiness has a vital role to play in improving public services. This new research shows that having a diverse range of providers increases quality, stimulates new ways of working and encourages greater efficiency.
鈥淧roviders from all sectors need to understand the government鈥檚 vision for public service markets so that they can invest in the new delivery models, technology innovations and supply chains, which will deliver the savings and transform the way the public access key services.
鈥淓nsuring providers from the public, private and voluntary sectors can compete on a level playing-field, and their performance is judged on equal terms, means in the end the best provider will provide.鈥�
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