Quality and appropriateness of services are key elements and these can often be difficult to compare, using purely commercial or cost based formulae. For example, in the area of residential care local authorities have led the field in increasing the ratio of qualified staff. This has been because of active decisions to provide a safe and high quality service to the most vulnerable. It has also been the result of directions or recommendations from inquiries. The problems created by putting cost before appropriateness or quality of service will ultimately land at the council's door irrespective of who delivers the service.
Omissions are easy to make in trying to make real comparisons.
The result can be that the more specialist or lucrative specialist tasks are contracted out while the council is left with the more expensive and unattractive ones. These tasks then become even more expensive without the ability to cross-subsidise financially or in staffing terms. Such omissions can also happen 'in house'. The council has it in its power to address this. It would not if it had outsourced or contracted out on this basis.