Government plans to use the private sector to deliver public services are being scaled back, according to reports.
A leaked document seen by the BBC appears to show that ministers now view the “wholesale outsourcing” of services as being politically “unpalatable”.
Instead, the government wishes to use social enterprises, charities and “mutual” bodies owned by workers, in a bid to reduce the UK’s budget deficit and cut costs overall.
This could lead to questions as to whether or not the government can achieve the savings it has staked its reputation on, or deliver on its commitments over services, through the use of charities and mutuals alone.
Pressure from the Liberal Democrats to focus more on delivering services locally rather than privately could also be coming into play.
The proposals will be part of the Open Public Services White Paper, which is expected to be published later. The reforms are targeted at finding new ways of providing services - including prisons, tax collection, NHS services and the civil service.
The leaked report was seen by the BBC following a meeting between Franic Maude and the CBI’s director general John Cridland.