Public Sector Bulletin - 13 January 2017


2017 and the return of wage growth

In the UK various leading financial experts predict that employers will face pressure to increase wages in both the private and public sectors in order to remain competitive.

Slowing income growth has been publically criticised and will be well known to most of the public. Analysts have blamed a number of factors, including weak productivity growth, memories of the recession and intense foreign competition.

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Accelerated Construction - £1.7bn for 15,000 New Homes

The government's Accelerated Construction Scheme ("the Scheme"), initially announced in October 2016, plans to take direct action to deliver 15,000 homes on surplus public sector land. The £1.7bn Scheme aims to avoid using major builders and instead tackle the construction skills gap whilst doubling the speed of traditional development, with potential benefit from higher returns when selling homes than would otherwise be expected from disposing of sites directly to market.

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Public Sector

Procurement - Is there a 'Third Way' for Contracting Authorities alongside Teckal and Hamburg?

The Advocate General of the Court of Justice of the European Union handed down his preliminary opinion on the Remondis case. This opinion indicates that there could soon be a 'third way' for contracting authorities to remove the need for a procurement process when directly awarding contracts to certain organisations for the purpose of providing public services.

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