pop-logo-verticalCreated with Sketch.

News (6)

View all >

Private contractors paid millions to run UK detention centres

The British government has paid hundreds of millions of pounds to private contractors to run its detention facilities, but no one knows for certain just how profitable the industry is. “One of the 10 UK facilities is run by Her Majesty’s Prison and Probation Service, but the rest are contracted out to outsourcing firms G4S, Mitie, Serco and the US-owned GEO Group. (…) Commercial confidentiality agreements mean the Home Office and outsourcing companies are not obliged to publish detailed financial information about immigration detention centers in the UK. But figures released under freedom of information laws and published on the government’s Contracts Finder website show the value of some contracts when they were awarded. (…) The profitability of detention facilities has proved to be a contentious issue for the contractors. A Guardian investigation last year pointed to a 20.7% profit margin at the G4S-owned Brook House in 2016, while at Tinsley House the margin was 41.5%. (…) GEO Group, which operates Dungavel House, Scotland’s only detention center, may be making up to 30% profits on its contract, according to an analysis by Corporate Watch.”

After Carillion: Public sector outsourcing and contracting

Thisreport finds that government ineffectiveness has contributed to the problems that Carillion and other companies have faced. The Government has deliberately promoted an aggressive approach to risk transfer to the private sector - often even attempting to transfer risks that the government itself has completely failed to analyse or to understand.