A Guardian analysis reports that private equity-controlled firms receive a large share of UK government spending via contractors. The outlet says that almost £24.4bn of government money went to private equity-run businesses in the year to April 2025, and that £1 in every £11 spent on public contractors flows to such companies. The analysis and related reporting describe how private equity involvement expands beyond typical commercial sectors into public-facing services, including healthcare, transport, waste management, elderly care homes, and placements such as fostering and children’s homes, as well as schooling for some children with special educational needs.
Experts cited by the Guardian raise concerns about potential effects on service quality and financial stability. They argue that private equity-backed models can create financial fragility and encourage sharp cost cutting, including through high debt levels and debt-related pressures. Critics also cite what they describe as conflicting incentives when firms seek to maximise assets and profits while running services intended for public benefit. The reporting also mentions unintended consequences as private equity firms become more established in these sectors.
