The extent to which public services are delivered by government or by the private sector varies by type of service and by country. Many governments have experimented with the “marketisation” of public services, e.g. privatisation, Public Private Partnerships and outsourcing non-core functions. However, wherever there is a mixed economy for the delivery of public services, it is critical to have clarity on the role of government as commissioner, purchaser, regulator and/or provider.
Some key questions for our "Making public service markets work" research programme include:
What is the role of "strategic" commissioning in public service markets?
What are the practical ways of developing an effective commissioning capability?
Housing associations play an increasingly important role in today’s UK housing market. They are leading suppliers of affordable homes, major partners in regeneration and estate renewal, and providers of a wide range of vital welfare services to the most vulnerable in our communities.
The drop in lending due to the credit squeeze and the sharp reduction in private new-build have increased the pressure on housing associations to maintain the flow of affordable homes in all areas of the country.
Against this backdrop of macroeconomic uncertainty and tighter constraints on public spending and private lending, we examine the funding considerations that follow from these policy changes and challenges. In particular, we look at and discuss the options for new and innovative ways to utilize housing association assets and financing capacity.
Central and Eastern Europe (CEE) is experiencing unprecedented levels of activity in projects aimed at modernising public and social infrastructure, as the region works to meet its estimated €500bn total infrastructure investment need. This paper provides a brief background on current developments in the infrastructure sector in the CEE region, highlights several major upcoming opportunities, outlines the key practical challenges in bidding for these projects successfully and shares lessons learnt from our experience on how to deliver them. In addition to providing a backdrop on infrastructure activity in the CEE region overall, the paper focuses on five major territories where PPP opportunities are the most plentiful - Poland, Hungary, Slovakia, Romania and the Czech Republic.
This publication looks at the impact of the Private Finance Initiative (PFI) in the light of the impending adoption of International Financial Reporting Standards (IFRS) by the UK Government from 2008/2009 onwards. The new standards are likely to bring most PFI projects on balance sheet and so the accounting driver for public bodies to procure projects through PFI will disappear.
The paper asks whether this matters. Has PFI brought about the benefits hoped for? To the extent it has, what has been the contribution of private finance? How important is the 'F' in 'PFI'? And will the impending accounting changes actually open up the way towards structuring projects more effectively?
The UK Government, in both its 2007 Sub-National Review of Economic Development and Regeneration and 2007 Comprehensive Spending Review, has proposed a range of new local financing tools that place a premium on local innovation in order to address its current infrastructure funding gap. We have been working with the Centre for Cities to explore how these and other new financial tools can help unlock greater infrastructure investment - which is critical to securing sustainable growth in our cities and towns. This new survey captures the market’s views and attitudes towards greater financial devolution in funding infrastructure investment.
Public sector leaders around the world face a common set of challenges if their services are to meet the increased expectations of their customers – both citizens and businesses. This study identifies these challenges and shares lessons learnt, from examples around the world, to offer a structured approach in support of public sector leaders in their work to improve public services and deliver on the customer promise.
Supplementary Business Rates (SBRs) have recently been proposed as a mechanism to allow cities to generate additional funds for infrastructure investment. This paper presents new analysis that illustrates their possible contribution and the main challenges that must be tackled by city leaders, business and central government if SBRs are to finance local growth. It is part of the joint City Solutions project we are undertaking in the UK with Centre for Cities.
How should we define UK public services and what aims should we have for them? We have been supporting this ippr project which revisits the case for the reform of public services in the UK and charts a way ahead. It argues that public service reform should now focus on getting the relationships right between central and local government, services and their workforce, citizens and public service users. This requires not just a change of approach on the part of central government, but a new a new set of bargains and responsibilities on all sides, with information and accountability at the heart of a new system of public service improvement. The report is being published as a contribution to the debate in the run-up to the Comprehensive Spending Review.
NLGN report
PwC supported a project with the New Local Government Network in the UK to develop proposals for improving how local authorities harness investment from Government, the private sector, the EU and RDAs for capital projects.The proposals are now published in a report which examines how to simplify the grant funding framework. It goes to the heart of the ongoing debate on new “localism” in the UK – how to enable local government to have the capacity and flexibility to meet the challenge of financing future economic development.
The study adopts a wide definition of economic development that covers all of the aspects that drive both the economic competitiveness of local areas and creating the sense of place required to deliver sustainable and inclusive communities.
Are outsourcing contracts delivering benefits for the public sector? PricewaterhouseCoopers addresses the questions surrounding the delivery of UK public sector outsourcing programmes.
The HOPE VI programme in the USA has pioneered a unique public-private approach to mixed communities that has resulted in housing developments that are viable, attractive to the market and third party investors, and sustainable over the long term.
A combination of rising levels of car ownership and increasing travel by car has led to two major problems associated with road transport for the UK: growing levels of congestion and increasing carbon dioxide (CO2) emissions, which already form a significant proportion of the UK’s greenhouse gas emissions. Road pricing – the variable charging of road space by time and location – could be useful in successfully combating these problems. But, despite a broad ‘elite’-level consensus on the principle of road pricing in the UK, public attitude arguably remains the key barrier to its introduction.
PricewaterhouseCoopers reveals the results of its survey of PPP activity and makes recommendations for further streamlining of the procurement process.
With better public services at the heart of government agendas, the need for private sector involvement in the delivery and management of these services has intensified. According to this paper, greater efficiencies and effectiveness can be delivered directly to the heart of public services through the emulation and development of private sector partnering practices.
