Employers’ group says British government should outsource FM services

by Jbs110909 j3 — November 11, 2009—The U.K. employers’ group CBI says radical public services reform, including outsourcing facilities management services, is needed for the British Government to deliver savings of 120 billion and move the country on the path to economic recovery.

Outsourcing support services is a main feature of “Doing More With Less: A Credible Strategy for Restoring the Public Finances” (.pdf file), CBI’s Public Services Strategy Board paper outlining its proposals for rescuing the government’s finances.

CBI is calling on the chancellor to ensure his Pre-Budget Report delivers a credible plan for balancing the public finances by 2015-16, two years earlier than planned, in order to boost investor confidence and get the U.K. on the path to recovery. But it is warning that the government will need to take an extra 120 billion out of current spending plans to balance the budget.

CBI recommends outsourcing FM in government departments, citing the 15-year partnership between Interserve and Defra that covers 186 sites in England and Wales as a model. The group says that outsourcing more FM services at hospitals could save the government 6 billion, with billions more of potential savings across the rest of government.