Private equity firms received £24.4bn from UK government contracts in past year, analysis finds
By
Carmen Aguilar García, Michael Goodier, Jessica Murray, Pamela Duncan, Yassin El-Moudden, Isaaq Tomkins, Krystina Shveda, Zeke Hunter-Green, Tom Richards
Summary
Research reveals that £1 in every £11 of UK government spending on contractors — nearly £24.4bn in the year to April 2025 — went to private equity-controlled companies. These firms run essential public services including transport, waste management, and healthcare. Politicians and economists warn that private equity-backed firms' high debt levels create financial fragility and incentivize sharp cost-cutting, while their profit-maximizing motives conflict with the public interest in service delivery.
Source
bskyPrivate equity firms received £24.4bn from UK government contracts in past year, analysis findstheguardian.comKey quotes
· 3 pulled£1 in every £11 of UK government spending on contractors went to private equity-controlled companies last year
Politicians and economists have raised concerns over the 'financial fragility and sharp cost cutting' created by private equity-backed firms
Conflicting interests in running public services for maximum profit
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