§ Mr. LidingtonTo ask the Secretary of State for the Environment when he intends to publish the results of research into the effects of competitive tendering for local authority services.
§ Mr. BaldryMy right hon. Friend the Secretary of State for the Environment has today published the full report of a major study into the impact of competitive tendering under the Local Government Act 1988, which has been carried out for us by the university of Birmingham. Copies have been placed in the Library of the House.
The research shows that competition produces significant benefits for local taxpayers. Competitive tendering has resulted in fundamental service review within local authorities, leading to more efficient management, reduced costs and a sharper focus on performance and quality. In particular it shows, in the authorities studied, that an average reduction of 6.5 per cent. in the annual cost of services subject to competitive tendering has been achieved, due in large part to significant improvements in productivity. Service standards have been maintained and often raised in the process and competition has been an important spur to greater emphasis on performance, target setting and quality assurance in local authority service delivery.