Difference between Public and Private Sector- for GCSE Citizenship- by http://www.tes.co.uk/teaching-resource/Public-and-Private-Sector-6197407/

1. Title : Government and public services.
Aim : We will think about whether or not
Government is the best organisation to
provide public services.
Key Words
Public Service = A service provided by government
or local government.
Private service provider = A private service provided
by private business. Example rail transport is now
privately run.

2. What are Public Services?
 Public Services are organisations that are
directly run by the National or Local Government.
 An example of a Public Service include Schools,
Hospitals, local parks etc.
 The Public Sector as it is also known as is used to
provide services to the public.
 There are some public services that are now
private including Rail travel.

3. Advantage of Public Services
 Advantages: The public controlled the service and
therefore the profit margins are kept low
 The costs of using Public Services are covered
from the Taxpayer therefore cannot go too much
into debt
 They are directly controlled by the Government
and therefore cannot be used inappropriately.
 All the essential services will be free and wont
charge the public to use them
 Examples include: Schools, Hospitals

4. Disadvantages of Public Service
 All the money that is used comes from the Taxpayer
therefore would not be getting best value for money
 There is less competition for the Private Sector
therefore not allowing private sector growth
 Some Organisations are very expensive to run and
could cause a lot of money being used from taxpayers

5. Here are a list of public services.... Can you divide them into either
Central Government or Local Government Control?
The armed forces Local Library
Provision
Of parks
Recycling Or open
spaces.
Justice Prison
Service Service
Housing
NHS
Police Social
Service

6. What are Private Services?
 The private sector consists of business activity that
is owned and run by private individuals. These
businesses can be small firms owned by just one
person, or large multi-national businesses that
operate around the world (globally). In the case of
large businesses, there might be many thousands of
owners involved. The goal of businesses in the
private sector is to make a profit.

7. Advantages of Private Sector
 Private services are owned by Private companies and
therefore are seen to be cheaper to run
 Private sector have more control in terms of wages
and costing of the service
 They can use their companies to invest for the future
to improve sustainability

8. Disadvantages of Public Services
 If the company does not make money than it might
have to backed by the Public Taxpayer
 Example of Private Sector not working include the
recent case of the Northern Rock bank when the
company went into too much debt and therefore was
backed by the Government to make sure people were
still able to use the bank
 Prices can be increased for services according to the
company

9. In the U.K many public services are provided by government and local
Government. We are known as a social democracy because the state
( government ) look after a lot of things for us. People pay for public
services by paying high direct and indirect tax.
In the U.S.A , many public services are provided by private companies
who charge people directly for services or charge the government for
services. In the U.S.A government taxes are lower but people have to
pay the service providers or pay into insurance policies to make sure
they can afford services. The U.S.A relies on private provision of services
it is more of a capitalist democracy than Britain.
The U.S.A still
controls its own
armed
services.

10. People receive a service
based on their needs Elected politicians can Rates of pay and
not rather than their Maintain control of public working conditions
Ability to pay. services. They can e held are same across
accountable. the country.
Service does not have
to make private share Everyone receives
holders profit and business equal treatment.
owners
People can choose the
service they want. Competition between businesses
drives up standards, brings in
People have pay for new ideas and can lowers
Own services so they costs.
are more responsible.
Companies lose business if
service is poor. This encourages
Elected politicians can
Them to provide good services.
Spend time checking on
How services are doing
Rather than running them.