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Business chiefs have hit back after an Audit Commission report warned councils not to be ‘seduced' by the lure of public-private partnerships. The Audit Commission report, For better, for worse: Value for money in strategic service-delivery partnerships, concluded that councils should only enter into complex partnerships if they had the necessary expertise needed to get good value for money. The report claimed more than half of all councils were already engaged in, or were seriously considering some form of service partnership. ‘Complex, long-term partnerships with the private sector can succeed, but they're far from easy,' said commission chairman, Michael O'Higgins. ‘But all partnerships are risky – even within the private sector. Two out of every three fail.' The CBI's director of public services, Dr Neil Bentley, said the report showed that most partnerships did ‘deliver value for money'. ‘But councils need to develop their commercial skills if they are to get the best out of these arrangements,' Dr Bentley said. ‘When they get it wrong, it costs taxpayers, and makes firms less prepared to make long-term investments.' Richard Marchant, local government strategic partnerships director at Capita, said the relationship between local authorities and private sector partners had matured over the last few years. Mr Marchant said it was important for councils to understand what they would get out of a partnership. ‘For us, it's about having a mature relationship, and this relationship being a lot more flexible,' he said. ‘A lot of the partnership deals we are now signing are between 10 and 15 years in length, and we cannot afford to get these wrong. It's important we have a seat at the top table of the local authority, and are an integral part of what goes on.'

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BUSINESS

Private sector rejects call to avoid 'seductive' PPPs

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