Working with the private sector

The page explains the relationship and changing context for voluntary sector and private sector relationships in public service delivery.

In this section:

• The relationship between the private and voluntary sectors
• NCVO support and research
• Recommended reading

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The relationship between the private and voluntary sectors

Just as the voluntary and commnity sector (VCS) has taken advantage of national and local government outsourcing public services, so has the private sector. In the voluntary and community sector we are used to talking about private sector as something quite different from the voluntary sector, but from a Government point of view, in many ways we are two sides of the same coin. Policy often refers to 'SME's' - 'small to medium enterprises' of any sector.

The 2008 Julius review into the Public Services Industry defined the industry as: All private and third sector enterprises that provide services to the public on behalf of government or to the government itself.

Voluntary organisations could therefore benefit from learning more about and from the private sector, just as business could benefit from closer relationships with us.

The voluntary sector already works with private companies in different ways:

• As sub contractors delivering on Government contracts
• As equal partners delivering different parts of contracts
• As a buyer of services from the private sector

Since 2000/01 there has been a 128% increase in the level of earned income from statutory sources, or contracts. But despite this massive increase the private sector is still way ahead. In 2007/08 the voluntary sector had contracts with statutory bodies worth £9.1 billion compared to the private sector with just under £70 billion.

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NCVO support and research

NCVO is working to gain a better understanding of private businesses who deliver public services.

We are interested in your experiences, good or bad, so please get in touch if you have a story to tell or information to share email Ingela.andersson(@)ncvo-vol.org.uk.

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Recommended Reading

Professor Paul Grout at the Centre for Market and Public Organisation (University of Bristol) has written a report which outlines the different ways private sector firms are involved in delivering public services.

ACEVO and CBI have joined forces to produce a report looking at successful case studies where the private and voluntary sectors work in partnership. 

Dr DeAnne Julius undertook a review into the Public Service Industry in 2008 for the Department for Business Enterprise and Regulatory Reform.

Public opinion poll by think-tank Reform on the role of the private sector in delivering public services.

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