New Labour to announce more welfare money for the corporate scroungers

The Brown government is being hit over the head by the Tories and the capitalist press.

In order to win back support from where it matters most – the capitalist class – they’re going to do some more “Robin Hood in Reverse”.

Yes, that’s right, propping up the profits of the few at the expense of the many…

Private sector expands UK role

By Nicholas Timmins, Public Policy Editor

Published: December 4 2007 22:05 | Last updated: December 4 2007 22:05

The private sector supply of public services now makes a bigger contribution to the economy than pharmaceuticals, the automotive industry or aerospace, a study to be published by Oxford Economics on Wednesday will show.

Private and voluntary organisations now supply at least £44bn worth of public services ranging from prison places to NHS treatment, government buildings, IT projects, and social care and education. They account for 18 per cent, or almost one-fifth of all public service delivery, according to the study commissioned by the CBI, the employers’ organisation.

The Oxford Economics study shows the private sector employs some 700,000 people and generates £25bn towards national income, making it a larger contributor than the food and drink industry and almost as big as post and telecoms.

Its publication will coincide with the announcement by John Hutton, the secretary of state for business, enterprise and regulatory reform, of a yet more detailed study of the private sector’s contribution, and whether barriers need to be removed to allow it to do more.

With the CBI, among others, having been sceptical over Gordon Brown’s commitment to Tony Blair’s espousal of competition, choice and use of the private sector in public service reform, Mr Hutton will make clear that the independent sector remains “an indelible part of public service reform”.

He will highlight the prime minister’s affirmation at last week’s CBI conference to the use of choice, competition and the private sector in public services, when Mr Brown said that where it provides value for money, the private sector’s role will grow “at an increasing pace”.

The study will assess the scale and development of the market, any barriers to exit and entry in key public service sectors, the contribution it makes to the economy, and export potential.

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