Is Whitehall still letting profit hungry contractors off the hook to rip off the state?

Westminster Confidential

Chris Grayling: His £400m gift to contractor's profits sparked a pathetic clampdown pic courtesy: BBC Chris Grayling: His £400m gift to contractor’s profits
sparked a pathetic clampdown pic courtesy: BBC

Remember the major row over  justice secretary Chris Grayling’s “poison pill ” contract to privatise the probation service. This allowed  the successful bidders to walk away with up to £400m profit on a ten year contract should an incoming Labour government have the temerity to cancel it if they won the next election.

Grayling  not so innocently said that this was just normal Whitehall practice. Margaret Hodge, the chair of the Commons public accounts committee said it was “It is not value for money. It is unacceptable and must be challenged before the event.”

She demanded something be done and now the Treasury have responded. They have written to every accounting officer of every ministry and every government agency laying down new guidelines. You can read the letter here and see my news article in

View original post 305 more words