ABSTRACT
This chapter concerns setting 'contracting-out' of services in the public sector in its historical, economic and political context as part of the Conservative government's wider programme of 'privatisation' after 1979. The Conservative government's policy of compulsory competitive tendering (CCT) was predicated upon its view that 'services should be provided in-house only if a local authority can demonstrate that it can provide the service as effectively and efficiently as the private sector'. The compulsory nature of competitive tendering for local authority services is unique to Britain. Unlike other parts of the public sector where competitive tendering could be introduced by ministerial dictate, legislation was required forcing local authorities to adopt this policy. The 1988 Act introduced the concept of anti-competitive conduct which requires a local authority not to 'act in a manner having the effect or intended or likely to have the effect of restricting, distorting or preventing competition'.
