£1 in £11 of UK public contracting goes to private equity

financeJun 28, 202637501

Almost £24.4bn of UK government contracts went to private equity-controlled firms in the year to April 2025, a Guardian analysis shows, equivalent to one pound in every eleven spent on public contractors. Local councils awarded almost £9.8bn to majority private equity-controlled companies, about 10% of their external spending, while NHS contracts to private equity-backed firms totaled more than £5bn, around 10.7% of its external spending. The analysis names services including transport, waste management and healthcare among areas using private equity-run contractors. Commentators describe the trend as a "financial pandemic" and point to private equity practices such as high debt levels, sharp cost cutting and conflicted incentives when running public services. The Co-operative Party has promoted staff-owned co-operatives as one proposed alternative to private equity ownership in social care provision.

Prem Sikka

@premnsikka.bsky.social

UK Govt gifts to finance industry. Bank frauds not investigated. Income of private equity bosses taxed as capital gains (max tax 34.1%), not as wages The Financial Services and Markets Bill weakens the role of the Financial Ombudsman, imposes time limit for filing complaints. What next?

20846d ago

Nelly Probin7

Burnham could reverse Reeves economic vandalism, if he is minded to. If he doesn't, he'll carry the can.

The BFG2

Because as soon as any party is in power the bribes start flowing untill we rid all corruption out of parliament and start convicting corrupt MP's and Lords we do not realy live in a democracy

Robin-DeBowler1

Anything they want Prem. Eventually we will all agree that it ALL needs tearing down and recreating to support the Nation and all its citizens. Not just a select and privileged few.

Head Like A Hat1

A shame Labour are neck deep in corruption and not fighting this. www.opendemocracy.net/en/labour-ci...

Quoting this

Kevin 🏴󠁧󠁢󠁷󠁬󠁳󠁿🇪🇺💚 #VoteGreen5

Just like the #Tories before them, #Labour continue to give money to the bankers & the wealthy, while still insisting that “there’s no money" for the rest of us. 🙄 We've GOT to stop voting for these self-serving wankers. We need to restore equality & fairness. #VoteGreen

The Empty City

@davidallengreen.bsky.social

Public procurement is pretty much a racket, a continuing series. www.theguardian.com/society/2026...

7945d ago

herodotuspenguin.bsky.social1

Public policy around tax and regulation makes it more attractive to be PE backed than listed if you are operating in the UK or EU. So more public money ends up in PE houses. Though it’s not clear from the article whether it’s preferable for the money to go to listed groups who also seek profits.

Natalie Bennett

@nataliegreenpeer.bsky.social

#Financialisation #Privatisation A few profit and the rest of us pay. And most of the money goes into offshore tax havens... www.theguardian.com/society/2026...

5045d ago

The Scales ⚖️

@shakethescales.bsky.social

Tell us something we didn't already know... This has been the broadest of daylight robberies. Pretending it's a shocking revelation is typical of a robber baron's henchman... www.theguardian.com/society/2026...

3045d ago

Quoting this

The Scales ⚖️16

'UK Private Capital, the industry body for private equity and venture capital, said such firms played a vital role in the British economy, boosting productivity, attracting international investments and supporting innovation.' This is like saying murder creates job opportunities.

Prof Bill McGuire

@profbillmcguire.bsky.social

These obscene parasites are bleeding Britain and its people dry This has to stop NOW @andyburnham.bsky.social please act www.theguardian.com/society/2026...

3245d ago

Hettie O’Brien

@hettieobrien.bsky.social

£1 in every £11 spent on UK public contractors goes on private equity - a galling statistic in this excellent bit of reporting from my colleagues @michaelgoodier.bsky.social @c-aguilargarcia.bsky.social and others www.theguardian.com/society/2026...

2045d ago

paulusthewoodgnome

@paulusthewoodgnome.bsky.social

'Politicians and economists have raised concerns over the "financial fragility and sharp cost cutting" created by private equity-backed firms, which often have high levels of debt, and the "conflicting interests" in running public services for maximum profit.' www.theguardian.com/society/2026...

1645d ago

HT4Ecosocialism

@ht4ecosocialism.bsky.social

Private Equity are a bunch of crooks. Kick them out of the UK!

1244d ago

Claire #FBPE ☘️ 🍉 🇺🇦 🇪🇺🐝 🦮🇮🇪🇧🇪 💙💚

@fbpech.bsky.social

www.theguardian.com/society/2026... Vets bills are a disgrace! Ppl can’t affords pets-let alone🐈‍⬛ or🦮-because of the exorbitant vets prices! Multinationals/billionaires continue to ruin the U.K. (What’s left of it!) Animals are suffering because ppl who love their pets can’t afford the prices!

1645d ago

Hoody McExtremist

@hoodyindy.bsky.social

If anyone's wondering where all our money's going... ‘Financial pandemic’: £1 in every £11 spent on UK public contractors goes to private equity www.theguardian.com/society/2026...

745d ago

Lord SouthToNorth

@south2north.bsky.social

All western democracies operate to move public taxpayers money into the hands of private equity companies and the super rich … www.theguardian.com/society/2026...

545d ago

Ian Wiggett

@wiggett-ie.bsky.social

One pound in every £11 of UK government spending on contractors went to private equity-controlled companies last year, research shows, including key services such as transport, waste management and healthcare

345d ago

Ian Moody

@ianmoody.bsky.social

‘Financial pandemic’: £1 in every £11 spent on UK public contractors goes to private equity. Almost £24.4bn of government money went to private equity-run firms in year to April 2025, Guardian analysis shows. www.theguardian.com/society/2026...

345d ago

Chasha

@blueskytrekker.bsky.social

And just like American HMOs, the contractors will pocket more money than people with disabilities ever got. UCP friends benefit while people with disabilities are further disadvantaged and the Alberta public pays the bills. Smith gets greedier, crueler and more emboldened every day.

446d ago

Nick Langley

@nicklangley.bsky.social

Almost £9.8bn in contracts from local councils went to companies majority-controlled by private equity firms, an estimated 10% of their external spending More than £5bn of NHS contracts – 10.7% of its external spending – were paid to private equity-backed firms. www.theguardian.com/society/2026...

245d ago

1 source

theguardian.com‘Financial pandemic’: £1 in every £11 spent on UK public contractors goes to private equity

£1 in £11 of UK public contracting goes to private equityfinance

£1 in £11 of UK public contracting goes to private equity

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