The Public Accounts Committee (PAC) has recommended that the government moves to apply the Freedom of Information Act in order to allow for greater transparency and openness.

Chair of the PAC Margaret Hodge said: "Private provision of public services has become big business, with half of all public spending on goods and services going to private providers of contracted-out services.

"We believe government needs to urgently get its house in order so that this expenditure is properly open to public scrutiny, and that measures are put in place which will improve services and secure a better deal for the taxpayer."

The PAC referred to past public sector outsourcing project failures including G4S and Serco, saying that increased transparency would heighten the government’s ability to negotiate with suppliers and improve communications in order to avoid repeats of the Olympics.

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