Insourcing Unit to deliver “biggest wave of insourcing in a generation”: Haigh

In a written ministerial statement, Haigh said: “This unit will serve as a centre of excellence coordinating departmental insourcing activity, unblocking practical delivery barriers, and identifying cross-government opportunities to improve public services, restore direct operational accountability and deliver value for money.”

The unit will consider insourcing critical service contracts, complementing the Public Interest Test which was announced in June. The test applies to most central government projects - including re-procurements - for a service with an estimated value of more than £1 million (including VAT) that may result in the award of a public contract under the Procurement Act 2023.

The new unit will work with departments to halve consultancy spending and save over £700m annually by 2028/29, the First Secretary of State claimed.

To support this whole of government approach, departments will also publish Insourcing Strategies, exploring how to deliver in-house capability and rebuild state capacity, she added.

The ministerial statement also covers cross-government ship procurement and the National Shipbuilding Strategy, and requiring private utility companies to use their purchasing power to “support good British jobs and skills opportunities in manufacturing”.

See also: Insourcing and the Public Interest Test - Katherine Calder and Freya Blount examine new guidance for central government bodies on insourcing and a public interest test for service projects.