The document discusses driving efficiencies in the public sector through competitive tendering processes. It notes that government spending as a percentage of GDP has increased in recent years. Quotes provided suggest that introducing private sector practices can reduce costs by 10-30% without impacting service quality by reducing bureaucratic red tape. Interviews find that private contractors feel they have more autonomy and freedom to innovate than public sector employees. The overall message is that competitive tendering can help control rising government spending.

1. An Affordable Public Sector Driving through efficiencies Clive Barton, Group Marketing Director, Serco Member, CBI Public Services Strategy Board

2. Government Spending Source: ONS/HMT 35 37 39 41 43 45 47 49 % GDP Government spending and tax revenues spending receipts % GDP

3. Government Spending Source: ONS/HMT % GDP 35 37 39 41 43 45 47 49 % GDP Government spending and tax revenues spending receipts

4. “ We urgently need to improve the quality of public services……” %

6. “ The problem is not lazy or incompetent people; it is red tape and regulation so suffocating that they stifle every ounce of creativity. The federal government is filled with good people trapped in bad systems: budget systems, personnel systems, procurement systems, financial management systems, information systems. When we blame the people and impose more controls, we make the systems worse.” Al Gore

7. “ The academic literature typically found the cost savings from competitive tendering to be between 10 per cent and 30 per cent (including when the in-house team won the bid) with no adverse effect, and sometime and improvement, in service quality.” The Julius Review, July 2008

8. “ In my contract, I have more autonomy than I had in the public sector.” “ Managing my contract, I have more freedom to experiment and innovate than I would have as a public sector employee.”

10. Government Spending Source: ONS/HMT

11. An Affordable Public Sector Driving through efficiencies Clive Barton, Serco Public Services Strategy Board