Cruddas: government should stop outsourcing to companies “driven purely by corporate profit”

Jon Cruddas, who’s involved in writing Labour’s manifesto, has said that companies motivated solely by making profit should be stripped of government contracts.

The Telegraph (£) have found these comments in a book, Blue Labour: Forging a new politics, which is out in March.

The chapter written by Cruddas is called ‘The Common Good and in it he says there should be “no more outsourcing” of public services to private companies “that are driven purely by corporate profit rather than a social purpose”.

Cruddas goes on to say that it is “staggering” just 20 companies are paid £10 billion by the government to provide public sector services.

He outlines how Labour should change in relation to the 2008 financial crash, explaining:

“In this circumstance Labour’s politics of the common good requires three big changes. First, no more top-down re-organisation. Instead, locally run and organised schools, hospitals, house-building programmes and habitats.

“Second, no more outsourcing of relational services to those parts of the private sector that are driven purely by corporate profit rather than a social purpose. It is quite staggering that some £10 billion of public contracts – of taxpayers’ money – are allocated to some 20 private companies.

“Rather, we need to forge cooperative ties with ethical enterprise – such as cooperatives, mutuals, and social businesses.”