UK Sent £24.4 Billion to Private Equity-Backed Contractors, Equal to 8.8% of Contracts
Updated
Updated · The Guardian · Jun 28
UK Sent £24.4 Billion to Private Equity-Backed Contractors, Equal to 8.8% of Contracts
1 articles · Updated · The Guardian · Jun 28
Summary
£24.4 billion of UK public spending went to private equity-controlled contractors in the year to April 2025, according to Guardian analysis of procurement and company data.
That amounted to one pound in every £11 spent on contractors, with local councils sending £9.8 billion and the NHS more than £5 billion to private equity-backed firms.
Transport, healthcare and education were among the most exposed sectors: Arriva’s contracts featured in transport, while nearly £600 million of Department for Education external spending went to majority private equity-backed companies.
Critics including Oxford economist Ludovic Phalippou and thinktank chief Sarah Longlands said debt-heavy ownership and profit incentives can weaken essential services through cost cutting and financial fragility.
UK Private Capital defended the sector, saying it supports 13,000 UK businesses and raised £58.7 billion in 2025, even as past failures in care homes, Thames Water and pharmacies have intensified scrutiny.