The Adam Smith Institute
The Adam Smith Institute is the UK's leading innovator of free-market policies. Named after the great Scottish economist and author of The Wealth of Nations, its guiding principles are free markets and a free society. It researches practical ways to inject choice and competition into public services, extend personal freedom, reduce taxes, prune back regulation, and cut government waste.

The Institute is politically independent and non-profit. It works through research on policy options, publications, conferences and seminars, and helping to shape public debate in the media and among opinion-formers.

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Outsourcing between authorities
By Dr Eamonn Butler

This sounds really parochial, but it could be the start of something big. The Borough Council in Swindon, west of London on Brunel's famous rail line, is set to become the first local authority to outsource its service management to another. The Council will pay £3.6 million to Kent County Council in a three-year deal to improve the effectiveness of its zero-star social services department.

One of the problems in local government, and the reason why Britain's Council Tax is so high, is that they too often insist on doing everything themselves. You have four or five little places all running useless and inefficient payroll systems, for example, when they really ought to capture the benefits of scale and just get one of their number - or an outside contractor - to run it for all of them. But officials fear it is shameful to acknowledge that some other council might be better at running things than they are.

So this is a welcome trend. Let's hope that efficient local authorities will market their services to others; and that inefficient authorities will be brave enough to buy in their help. Then some of our most dire public services might just be improved.



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Adam Smith (1723-1790)
Adam Smith was the great Scottish philosopher and economist best known for "The Wealth of Nations", his pioneering book on free trade and market economics.

A wide selection of material about Adam Smith is now available on the Adam Smith website. This includes the full text of his two major works, The Theory of Moral Sentiments and The Wealth of Nations.