Partner Article

Tax and Regulation Bias 'Undermine Public Services'

The success of public services reforms are at risk because of unfair tax rules and muddled regulation, according to the CBI. The business group is calling on the government to end in-built biases, as part of an analysis of how public procurement rules discriminate against companies, voluntary organisations and, on some occasions, the public sector in the provision of public services. The CBI believes that current rules provide perverse incentives to avoid tax and may prevent effective reforms to the UK’s public services.

Mr Cridland said: “The CBI supports the creation of a mixed economy in public services. The public can only benefit if there is greater diversity and contestability in the provision of services. But a mixed economy can’t succeed if the rules aren’t fair for all providers. The government needs to address these issues of bias now.” The CBI is calling for a full inquiry to prevent flaws in the system damaging economic efficiency and holding back much-needed service improvement.

This was posted in Bdaily's Members' News section by Ruth Mitchell .