Private equity firms received £1 in every £11 of UK government contractor spending
8 reported
An analysis by the Guardian found that almost £24.4bn of UK public spending on contractors went to private equity-controlled companies in the year to April 2025, equivalent to 8.8% of government contracts. This represents £1 in every £11 spent on contractors. The investigation, based on procurement data from Tussell, company filings, PitchBook data, and public information, reveals the extent of private equity’s stake in British public services. Local councils paid almost £9.8bn to private equity-backed firms, an estimated 10% of their external spending. NHS contracts worth more than £5bn, or 10.7% of its external spending, went to such firms. The transport sector was also highly reliant on private equity, with Arriva bought by US firm I Squared Capital in 2024. Politicians and economists have raised concerns about financial fragility and conflicting interests in running public services for profit.
What’s reported
£1 in every £11 of UK government spending on contractors went to private equity-controlled companies last year.
Almost £24.4bn of public spending on contractors went to private equity-controlled firms in the year to April 2025.
This is equivalent to 8.8% of government contracts.
Local councils paid almost £9.8bn to private equity-backed firms, about 10% of their external spending.
NHS contracts worth more than £5bn (10.7% of external spending) went to private equity-backed firms.
The transport sector is highly reliant on private equity; Arriva was bought by I Squared Capital in 2024.
The Department for Education spent almost £600m (11% of external spending) on private equity-backed companies.
UK Private Capital stated private equity and venture capital firms contribute roughly 9% of private sector GDP and back around 13,000 UK businesses.
Key figures
Natalie Bennett, former Green party leader and author
Ludovic Phalippou, professor of financial economics at the University of Oxford’s Saïd business school
Sarah Longlands, chief executive of the Centre for Local Economies
UK Private Capital, industry body for private equity and venture capital
Sources: The Guardian
