Do Public Interest Companies form a Third Way within Public Services?

Abstract

Public interest companies have recently attracted the attention of the British government. These companies are charged with delivering public services in the public interest. Network Rail and foundation hospitals are examples of this policy approach. Many of its advocates believe that these bodies form a third way within public services. This claim has stimulated much controversy. This article asks if public interest companies constitute a third way within the public sector. My main conclusion is that these bodies do generate a third way within public services. This analysis is important for clarifying the nature of a significant set of policy developments as well as shedding light on the attempts by New Labour to create a broader third way beyond state-centred social democracy and free markets.

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