Independent waste management could save Britain millions

The Confederation of British Industry (CBI) has released a report on public services which indicates that outsourcing more waste management services could save the country £22.6 billion.

Despite a struggling economy, customer demand for services such as waste management continues to grow.

To allow these industries to continue to work efficiently and affordably, the CBI calls upon the government to accept that it is now time to open up the largely state-run services to some competition.

The taxpayer could be saved this money if the government were to "further [open] up public service delivery to independent providers," the report details.

CBI sees these changes as absolutely necessary to the waste management industry.

"Ploughing on regardless is not an option and urgent action is needed from the government to deliver its Open Public Services strategy – finding new ways to deliver essential services at lower costs," the report explains.

The study was carried out by Oxford Economics and examined 20 services provided by local authorities.

It looked at how much is spent and what proportion is sourced internally and externally.

As most of the services looked at are monopolised by the public sector, the CBI calls upon the coalition to consider using independent providers.

By 2014/15, budgets are likely to be cut by at least eight per cent, making the current system unviable if it remains privatised.

To assist independent providers in their plans for the future, the report urges the government to make a series of changes.

Firstly, to "create a transparent market place to allow commissioners to compare performance and providers".

The other changes require contractors to focus on the outcomes of their constructions, while creating effecting government engagement.

Posted by Joseph Hutton