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Public Services Industry Review
| Welcome from DeAnne I would like to thank you, first of all, for taking the time to contribute your thoughts, advice and evidence to the Public Services Industry Review. I was delighted to accept the request by John Hutton to lead this important Review. It is an exciting and challenging task whereby we aim to define the Public Services Industry (PSI) and gauge its importance to the UK. The Review will develop an analytical baseline for the PSI and provide a factual analysis of the key issues to be addressed if it is to achieve its full potential. | An important element of the Review is the gathering of information from those with experience in or around the Public Services Industry. We have therefore developed this website to enable respondents to the ‘call for evidence’ to submit their comments and analyses – centred on 10 key questions. The Review team will use this evidence to highlight issues on which we should focus, as well as drawing directly on case studies or other submitted material that can help to shape the findings of the Review.We are looking forward to engaging with you over the coming months as we work to establish a clearer picture of the UK Public Services Industry and its future potential. 
Dr DeAnne Julius Links to Information |
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Areas to be covered by the Review For the purposes of the review the PSI is defined to include those private and ‘third sector’ enterprises that provide services to the public on behalf of Government or to the Government itself. | These enterprises depend in whole or in part on revenues contracted through Government and deriving from taxes. Thus the Government, as policy-maker and purchaser, plays a central role in shaping the market for the Public Services Industry. Examples of PSI provision to the public on behalf of Government are rail franchises and private sector prisons. In the former, end-users pay for part of the service while part is provided by Government subsidy as determined in the contract. Examples of PSI provision to the Government itself are IT and payroll services. These are familiar procurement items, identical in many respects to those procured by private sector firms and, in most cases, sourced from firms which also supply the private sector. There are inevitably grey areas around the PSI definition used for this Review. For example, we exclude regulated industries such as water utilities which mostly operate in the private sector without Government subsidy, although their prices and investment strategies are largely determined by the Government’s regulatory policy. We also exclude transfer payments, such as state pensions, although they are tax-financed and may be used by the recipient to procure services which are thus indirectly paid for by Government. The Review will analyse the PSI across the whole of the UK and will include purchases by local, as well as national Government and by wider public sector bodies such as NHS trusts. |
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