This government will use free enterprise as a force for good
Last week, Cabinet Office staff visited a company called Clarity, a soap-making social enterprise established in 1845.
In addition to sampling some of the excellent soap they supply to our department, they met the employees who make their products, all of whom have disabilities or long-term health conditions.
Clarity is deeply committed to supporting and enhancing the lives of its employees, which is why the Cabinet Office chose to work with them. They are a powerful example of what successful public-private partnership looks like.
There is no doubt that great work is being delivered by private companies, many of which are small family-run businesses, social enterprises, and charities.
Whether it is operating our call centres, collecting our recycling, or managing our libraries, the private sector plays a vital role in delivering key public services.
Every government takes a slightly different approach to outsourcing, but the evidence points to one conclusion – it works.
Research has shown that outsourcing delivers savings of 20 per cent compared with delivering services in-house. Open and fair competition within free markets boosts innovation and encourages fresh ideas.
The private sector also brings skills, expertise, and knowledge to the public sector, something this government does not take this for granted.
Free markets have delivered so much – we are living longer, have improved literacy, experience less poverty, and enjoy more disposable incomes. Open competition has spurred innovation leading to technological improvements, helping us to work smartly and efficiently to create savings for taxpayers that ultimately benefit everyone in our society.
The challenge for us now is ensuring our rules and regulations allow markets to function well, while finding the right cultural and social grounding for business to thrive.
It has been almost a year since Carillion went into liquidation. Thankfully, there was no break in their critical services: hospitals continued to operate, 32,000 school children were fed, and Britain’s railways continued to be built.
The government's speedy response meant that services continued uninterrupted, but we must continually strive to learn lessons from the past.
Since last year, we have listened and reflected. We are now moving forward.
By summer 2019, government procurement will be required to take social and economic benefits into account, including supporting small businesses, providing employment opportunities for disadvantaged people and improving environmental sustainability.
Many of the businesses I meet up and down the country are committed to playing their part, but government must lead the way in using its buying power to drive social change.
I am absolutely clear that in doing so, we will not discriminate against smaller businesses by applying tests that only larger businesses can meet.
The benefits of state control are often held up as the ideological answer to all our problems; a good in and of itself.
However, this government is committed to getting the best value for taxpayers, business and consumers, and that means keeping costs down while working with some of the most dynamic companies of today to deliver long-lasting social change.
As we reflect on how far we have come, I remain committed to building a new model of delivering public services in the twenty-first century – one which puts values at their heart, and ensures they have the confidence and trust of the people we serve.