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Business Comment

Mark Leftly: Outsourcing may not be so lucrative under Ed Miliband


Westminster Outlook The announcement by Chi Onwurah, the shadow Cabinet Office minister, that Labour would make it easier for social enterprises to win Government contracts will not worry big beasts of outsourcing like Serco and Babcock. Only a relatively small number of three-year contracts will be open exclusively to enterprises “in the pursuit of a public service mission”.

For now, the biggest 20 Government contractors can still expect to rake in the state’s money at the rate of £10bn a year. But Labour under Ed Miliband is not shy of adopting populist policies that encapsulate mistrust of business. This is part of a broader Labour strategy to punish the big outsourcing companies.