Over £22 billion could be saved by the public sector through outsourcing and encouraging private sector competition according to an Oxford Economics study for CBI.
The research found that the inclusion of independent businesses and organisations could reduce costs by 11 percent.
CBI director general, John Cridland, said: "Most public services are still largely state monopolised and it's time to open some of them to competition. That is the way to maintain quality and achieve billions of pounds worth of savings."