HC Deb 06 July 1988 vol 136 cc630-1W
Mr. Cousins

To ask the Secretary of State for Social Services (1) what percentage by value and volume of National Health Service(a) catering, (b) cleaning and (c) laundry services have been put out to competitive tender;

(2) what percentage of contracts put out to competitive tender for (a) catering, (b) cleaning and (c) laundry services in the National Health Service have been won by either in-house tenders or outside tenders;

(3) what are the estimated savings, gross and net of redundancy and other costs on tendering for (a) catering, (b) cleaning and (c) laundry services in the National Health Service.

Mrs. Currie

As at 31 March 1988 it is estimated that virtually all domestic and laundry services, 96 per cent. and 97 per cent. by value respectively, had been put out to tender; and 76 per cent. of catering services. Of contracts awarded for these services, in-house teams won around 80 per cent., 85 per cent. and 97 per cent. respectively. Estimated net annual savings generated by award of all contracts, as reported by regional health authorities, were £79 million, £8.7 million and £18.2 million for domestic, laundry and catering services. No information is available centrally on gross savings.

Mr. Cousins

To ask the Secretary of State for Social Services how many contracts put out to outside tender in the National Health Service have subsequently reverted to in-house tender.

Mrs. Currie

Nineteen to 30 March 1988.

Mr. Cousins

To ask the Secretary of State for Social Services what was the total spent by the National Health Service on(a) catering, (b) cleaning and (c) laundry services in the financial years 1983 to 1988.

Mrs. Currie

Figures of total current expenditure on the services requested derived from the annual accounts of regional and district health authorities in England together with those of the special health authorities for the London postgraduate teaching hospitals are shown in the table. Health authorities were required to subject their provision of these services to competitive tendering arrangements following the Department's competitive tendering initiative in 1983.

Catering Domestic/Cleaning Laundry
£ million £ million £ million
1983–84 354 429 66
1984–85 354 418 64
1985–86 355 404 64
11986–87 361 381 64

1Latest year available. (Figures for 1987–88 will be available in the autumn).

Notes:

1. The figures for 1985–86 and 1986–87 do not include comparatively minor expenditure by family practitioner committees following their separation from health authorities on 1 April 1985.

2. The figures for 1983–84 include an element for value added tax charged by private contractors. Since I September 1983 health authorities have been able to reclaim this and hence exclude it from their expenditure.

Mr. Cousins

To ask the Secretary of State for Social Services what proportion of the total National Health Service cost improvement programme is accounted for by savings on catering, cleaning and laundry services in each financial year from 1983–84 to 1987–88.

Mrs. Currie

Savings on catering, cleaning and laundry services in 1985–86 and 1986–87 accounted for 11.8 per cent. and 16.8 per cent. of the total cost improvement programme in those years. Comparable figures are not available for the other years requested.

Forward to