The public sector spends £242 billion a year with private and voluntary sector suppliers

The public sector spends more money on contracts than it spends on providing services itself. During 2014-15 it spent £242 billion (31% of total government spending) on external suppliers, compared with £194 billion on staff costs. Suppliers now play a significant role across the public sector. They carry out government work including complex projects, back-office administration and public-facing services.

Government's large contracts include:

•  HM Revenue & Customs' information, communication and technology services contract, known as 'Aspire' (£11 billion total contract cost)

•  Ministry of Defence's defence information infrastructure contract (£4 billion)

•  Department for Transport's contract for the Northern Rail franchise (£2 billion)

•  HM Treasury's outsourced service contract for National Savings & Investments (£1 billion)

Largest categories of public sector spending 2014-15