§ Sir Paul BeresfordTo ask the Secretary of State for the Environment, Transport and the Regions if he will make a statement on the recent survey of local authorities relating to the financial impact and results of CCT. [9074]
§ Mr. RaynsfordResearch recently published by the Department looked at both the financial and service quality impact of CCT on blue collar services covered by the Local Government Act 1988. It showed average annual savings on contract prices of 9 per cent. for the second round of tendering. This finding is, however, dependent on the way in which the social costs and benefits of CCT are treated. Other research, commissioned outside the Department, suggests a wide variation in estimates of savings when these factors are taken into account.
The departmental study also indicates that these savings have been accompanied by only relatively minor improvements in service standards; more attention needs to be given to the development of local performance indicators. A majority of the authorities surveyed also thought that user involvement in the specifying and monitoring of services could be improved. These issues will be addressed by our best value proposals, currently being developed with the support of local government and the private sector.