Local government catering has not yet been exposed to true competition because the way contracts have been packaged...
Local government catering has not yet been exposed to true competition because the way contracts have been packaged has deterred smaller contractors, says a study by the Institute of Public Finance.
IPF, the commercial arm of CIPFA, predicts in the report Eating Out that after a slow start local government will become a growth market for the contract catering market because of local management of schools.
With school governing bodies free to make their own arrangements for catering, smaller contracts for individual schools will become available.
'The private sector is optimistic about its ability to secure catering work in individual schools where contracts will be smaller and more manageable', says the report.
Since the introduction of compulsory competitive catering, contracts worth £691 million have been awarded by councils. The private sector has won contracts worth £34m - just 6% of the total put to tender. The IPF has identified only nine companies operating school and welfare catering contracts and 24 operating other catering contracts in local government.