From a blog from the London Review of Books, by Ross McKibbin:
The privatisation of the state has had a profound effect on the social structure of Britain. From the moment the great privatisations of the Thatcher era occurred a whole new social class was created. They are the bankers, lawyers, consultants and lobbyists who arranged the sale of state assets and simultaneously enriched themselves. The same riches are now being showered on the innumerable private firms to which have been contracted the state's functions, there now being few assets left to sell, whether it is prisons or employment agencies. There is little or no evidence they do what they do better than the state but they are, nevertheless, paid huge amounts for doing it.
That sounds like someone arguing for a Courageous State to me.
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And me. The contracts within central government are often absurd with people who are paid huge fees to ensure value for money doing just the opposite. The maintenance of government buildings is well worth an investigation. £1000 to paint a door is quite common.