Local elections can give Labour a platform for government

Private companies delivering public services may be spivs (Aditya Chakrabortty, 24 April), but the problem is the nature of the relationship created by contracts, which is a rent-seeking one.The returns enjoyed by many private companies are based on a management fee.Since Labour took over Liverpool city council we have insourced some £50m of contracts for public services, from waste management and street cleaning to highways and Liverpool Direct.