To ask the Secretary of State for the Environment what are the estimated savings made by local authorities as a result of compulsory competitive tendering; and what further savings could be made through its extension.

Research has shown average savings of 6 per cent. in the annual value of contracts for all services subject to competition under the Local Government Act 1988. Higher average savings, in the range of 10 to 15 per cent. of annual value, have been achieved in the case of refuse collection and building cleaning. The Government believe that the demonstrable gains in efficiency and value for money stimulated by the introduction of competition should be extended to a wider range of local services.