One of the [many] problems with privatisation-by-tender is that the public provider doesn't compete. And they can't compete because they can't commit budgets up

One of the [many] problems with privatisation-by-tender is that the public provider doesn't compete. And they can't compete because they can't commit budgets up to y10. If you actually let public services take their gloves off, they'd shred most tender offers on sight. With few exceptions, hiring people to do things is ALWAYS going to be cheaper if done directly, and it's stupid to pretend that Serco, G4S, etc are delivering value. There's still room for private providers, and even room for multiple providers (some public, some private) operating in constant competition. Central government should compete on centralised services. Does every hospital in the country need patient management software? Then write some centrally! Does every council need to send out letters and notifications? Then do it centrally! It's all so stupidly simple. It's a travesty that the people making these decisions have been profiting from doing things the wrong way.