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BSA sends the Chancellor ideas for his Budget

25 February 2009

The BSA has scored an FM industry first by preparing an expert Budget submission on behalf of the FM sector which was sent to the Chancellor of the Exchequer last week.

The BSA Budget Submission 2009 runs to 21 pages of closely argued points for the Chancellor and his team of advisors to consider whilst preparing the Budget due to be announced on 22 April. The submission has been prepared by experts among BSA member companies who collectively have a combined worldwide turnover of c.£69 billion and employ around two million people. In the UK the combined turnover is c.£14.3 bn and c.350,000 people are employed across the country.

The BSA prefaces its statement with "The UK business and outsourced service industry is one of the largest sectors in the UK and plays a significant role in delivering training, employment and economic growth. It helps to drive innovation, choice and diversity across the private and public sectors. We believe there is a significantly larger role the private sector can and should play in providing services for and to the public sector.

The key points in the submission are as follows:
...Consistent political and policy support is the key factor in attracting private sector service providers into delivering public sector services. Reforming the public sector and the provision of services is a complicated area of service provision. The industry needs stability, consistency and certainty.

...There is evidence to show that procurement processes often hinders rather than aids the decision making process. Often they are time consuming and costly and achieve the effect of discouraging rather than encouraging a wider range of providers from entering the market. We would encourage a much greater degree of co-ordination and information sharing between central government departments in understanding the fast developing nature of the service industry.

...We are concerned that the level of private sector funding in the business and outsourced services industry may reduce as investors (both UK and foreign) will seek alternative tax competitive jurisdictions.

...The increasingly onerous requirements for providing expensive and volatile defined benefit pension schemes for former public sector workers is creating a significant deterrent to private sector providers bidding for public sector contracts.

...The BSA has been a long time supporter of the concept behind Fair Deal and in particular of pension rights for former public sector workers. However, we believe that circumstances, both socially and economically, have changed significantly over the nine years since the introduction of Fair Deal. The BSA believes it is an appropriate time for Treasury to reconsider the protections that it has in place specifically for pensions under Fair Deal and we would welcome the opportunity to work with you to bring the protections more into line with other areas of public policy.

Copies of the BSA's Budget Submission 2009 can be downloaded from

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