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Outline and Comment on the key elements of Best Value. How does Best Value fit in with the concept of marketisation in the Public Sector?

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Introduction

Victoria Moseley B A (Hons) Public Service Management - Year Two - Semester One Resource Allocation - Aiden Oswell Number of Words: 2030 Outline and Comment on the key elements of Best Value. How does Best Value fit in with the concept of marketisation in the Public Sector? In June 1997 the Government announced that it intended to replace the Compulsive Competitive Tendering regime with Best Value as soon as parliament would allow. In December 1997, 37 pilot projects were announced to take Best Value forward. March 1998 saw the publication of the green paper "Modernising Local Government: Improving local services through Best Value", this was followed by the White Paper, "Modern Local Government: In Touch" with the publication of the Welsh White Paper "Local Voices: Modernising Local Government in Wales". Compulsory Competitive Tendering preceded the new Best Value regime. CCT was introduced by Margaret Thatcher and was introduced to save the Government money. Competition and markets have advanced on three main fronts that were CCT, market testing and internal markets. The internal markets generally refer to the trading which takes place within organisations boundaries. ...read more.

Middle

Consulting local service users and residents on their expectations about the services being provided. Not only stakeholders should be represented in the reviews, or service managers but also staff and customers. The concept of the 4 C's is how Best Value compares to the market place. Businesses who sell the same services would firstly look at the service or product being sold is it worth being on the market? Does it sell at all? They also have to compare themselves to other local and national providers, they have to compete against their local and national providers and they have to know what their customer wants. Service Providers and businesses often have market research completed using companies such as MORI to establish exactly what the customer wants, therefore private and public organisation are very similar now in a market sense whereas the public sector was only used by the public sector before CCT was introduced. A customer would not shop somewhere for more money if they were not going to get extra services or produce, a customer also wouldn't spend less if they were aware that they were buying an inferior product. ...read more.

Conclusion

This is at the same time as outsourced housing benefit contracts are being terminated or severely criticised for service failures and soaring backlogs by tenants and local authorities. (Best? Value - A critical guide to Best Value, the government's new regime for local authority services - Unison) In conclusion the public sector is becoming more and more alike to the private sector. Services are being scrutinised more and are more liable to be put out to private companies if authorities are thought to be under-performing. The government sees Best Value as a new initiative which will motivate councils to do better and to be more customer focussed, but the employees and as seen the Unions just see this as another form of privatisation and scaling down of authorities. Best Value takes local government into the market place by offering under performing services to the best competitor. Best Value is about providing accountability to local people and the money they pay for the services local authorities provide. The consumers don't mind who provide them as long as their cost is kept to a minimum. Best Value assists this with their monitoring and targets and with the five year rolling programme, the customer will always get the Best Value for their money. ...read more.

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