Call to cap profits for firms running public services

By the Editorial Team · Wednesday, August 19, 2026

Chris Cooke, mayor of Middlesbrough and chair of a metropolitan councils group, has called for profit caps on private companies delivering all statutory public services, criticizing current government plans as insufficient. He emphasized that limiting private sector profits is essential to protect service quality and ensure public resources focus on care rather than financial gain.

A senior local government leader has called for profits made by private companies delivering statutory public services to be capped. Chris Cooke, the Labour mayor of Middlesbrough and chair of the Special Interest Group of Municipal Authorities, which represents metropolitan councils in the Midlands and northern England, made the remarks while responding to government plans addressing corporate profiteering in social care.

Cooke welcomed the Prime Minister’s recent commitment to tackle excessive profits in essential public services, specifically adult and children's social care. However, he argued that current proposals do not go far enough in limiting private sector gains, stressing the need for more widespread reform.

“Austerity has weakened public services, leaving them vulnerable to market forces and private providers who often fail to deliver the necessary quality,” Cooke said. Drawing on his own background growing up in foster care, he emphasised concerns over poor practices among some private firms compared to local authority provision. He described the current situation as “gouging on pricing” and expressed support for measures to curb profiteering but called for profit caps on all statutory services.

Cooke also voiced reservations about expanding the powers of regional mayors under devolution plans put forward by Andy Burnham, Mayor of Greater Manchester. While Burnham has condemned cost-cutting by private companies in sectors such as care homes and secure accommodation for vulnerable children, calling it “utterly unacceptable,” Cooke urged broader restrictions on private sector roles in delivering statutory responsibilities.

“I would like to see anything that is a statutory requirement have some level of profit capping,” Cooke stated, highlighting the need to ensure public resources prioritize service quality over financial gain.

The debate over the role of private providers in public services continues amid ongoing concerns about service standards and financial accountability across local authorities in England.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.