NEW analysis by two trade unions shows that spending on private contractors for some key public services has doubled since Labour took power.
Research by Unison and RMT has found that the value of outsourced contracts awarded or renewed for ‘soft facilities’ management, including cleaning, catering and security, reached £6.2bn in 2025.
That is up from £3.5bn for 2024 when the Labour government came to power and the figure for 2026 has already hit £6.6bn so far, the unions say.
The findings were published earlier this week as Unison and RMT launched ‘Insource Now!’, a joint campaign calling for more public services to be brought back in-house rather than given to for-profit firms.
Unison and RMT believe the figures collected so far are just the tip the iceberg, indicating that the outsourcing of public sector contracts is still widespread in areas such as health, local government and transport.
The two unions say outsourcing often results in a race to the bottom as firms try to deliver services for less and maximise profits.
This means that already low-paid workers are often exploited with unfair wages, while services get worse and the public gets less value for money.
Prior to the 2024 general election, Labour made a manifesto commitment to bring about the biggest wave of insourcing of public services in a generation.
And in June this year ministers declared that ‘the age of outsourcing is over’.
But Unison and RMT say that the figures obtained from official contract registers suggest this is not happening.
Further analysis has been commissioned by the unions for a report which is designed to coincide with Labour’s conference later this month.
Prime Minister Andy Burnham has previously backed calls for more insourcing and the two unions say he must bring that commitment to public services across the UK.
Unison and RMT’s ‘Insource Now!’ campaign aims to ramp up the return of more contracts to the public sector.
The launch is timed to coincide with MPs’ return to Parliament this week following the summer recess, and ahead of the political conference season.
Dozens of outsourced workers attended the campaign launch on Tuesday night, with many sharing stories about how working on inferior contracts has affected their lives.
They appeared alongside Unison general secretary Andrea Egan and RMT general secretary Eddie Dempsey, who outlined the campaign aims.
The unions demand that the government implements an urgent programme of insourcing.
This includes ensuring each government department and public body works with unions to create a ‘people’s plan’ to insource contracts as they expire or when break clauses arise.
The unions also want to see annual audits produced, alongside the autumn budget, to make clear how much profit is extracted from public services through outsourcing.
Unison general secretary Andrea Egan said: ‘This is hardly the wave of insourcing that everyone was promised. At best, all we’ve seen is a trickle.
‘Outsourcing is a scourge that’s draining vast amounts of cash from public services to generate huge profits skimmed off by greedy bosses of private firms.
‘Every penny should be spent on providing higher quality services for everyone who needs them and making sure staff are paid fairly, instead of given rock-bottom rates.
‘Insourcing makes perfect economic sense and makes sure the public get what they pay for.’
RMT general secretary Eddie Dempsey said: ‘Public sector outsourcing is a national scandal that has been privatising essential public services throughout the country.
‘Taxpayers’ money is being used to increase the profits of wealthy corporations while workers and communities pay the price through worse jobs and services.
‘With Andy Burnham’s welcome support for insourcing, there’s now a real opportunity to turn the page.
‘We’re calling on the government to urgently agree a new “people’s plan” for insourcing to end the exploitation of workers and ensure public services put people before profit.’
Figures for the unions’ analysis were derived from the Tussell database, the most comprehensive source of public procurement data.
They refer to the value of ‘soft facilities’ management service contracts awarded across the rail, health, local government, policing, higher/further education and school sectors.
A number of unions including the RMT, Unison and PCS have submitted motions demanding urgent action on insourcing to this year’s 158th annual Trades Union Congress which takes place at the Brighton Centre from 13 to 16 September.
- The University and College Union (UCU) has condemned the takeover of Lincoln Bishop University by Global University Systems (GUS).
Subject to regulatory approval, the move will see the university effectively privatised and become part of the GUS group, but remain an autonomous university.
UCU general secretary Jo Grady said: ‘While there is no doubt that the higher education sector is in crisis nationally, the university’s financial decisions and strategic priorities down the years have also contributed to the position that institution finds itself in.
‘These issues were outside the control of our members, and yet they have been asked repeatedly to absorb their consequences through restructuring, increased workloads and the loss of experienced colleagues.
‘Lincoln Bishop University is more than a name, a campus, a set of courses, or even an owner.
‘It has an identity that has been built by generations of staff and students through talent, determination and a sense of educational mission in the heart of Lincolnshire.
‘We look forward to engaging in frank conversations with university leaders and GUS on ways in which those elements can be treated as the source of future success.
‘Our priority now is to ensure a focus on, and investment in, our members’ terms and working conditions, in the student experience, and the distinctive educational mission of Lincoln Bishop University.
‘Our members will approach this next stage responsibly, constructively and transparently, seeking to ensure that staff have a meaningful voice in shaping the university’s future.’
