UK’s Labour party is demanding an inquiry into the privatisation of government-owned recruitment firm NHS Professionals. It is demanding to know why Jeremy Hunt is selling the group.

NHS Professionals supplies doctors and nurses to hospitals across the UK and is said to save the government up to £70 million per year.

Earlier this year, it was reported that Staffline was in talks to buy NHS Professionals as they tabled a bid to take over the Department of Health-owned agency. Up to six different companies in total are reported have put in their final offers for NHS Professionals.

Labour stated that the firm should be kept in public hands and allowed to continue playing a key role in alleviating widespread NHS understaffing.

“On the government’s own estimates NHSP saves the taxpayer around £70m a year by organising last-minute or replacement staffing for NHS trusts in England, and ensuring hospitals don’t have to rely on expensive private agencies”,  Justin Madders, the shadow health minister, said in a letter to Sir Amyas Morse, the comptroller and auditor general who heads up the National Audit Office. Madders added that “the cost of agency workers in the NHS has doubled in the last three years.”

In a letter regarding the bid released earlier this month, health minister Philip Dunne stated, “The aim of this transaction is to ensure that NHSP has the technology, investment, skills and experience to grow for the benefit of both NHS patients and NHS staff. The key commercial feature of the potential transaction is that the company must act to maintain a business model based on supplying high-quality healthcare staff at low margins, to NHS clients. Breach of this principal would give the department the right to repurchase its shares.”

“The new majority shareholder would run and control the company, but the minority stake retained by the department would allow it to benefit from future increases in the value of the company and also give the department a seat on the board and oversight of its plans and operations,” Dunne said.

The sale of NHS Professionals is said to be finalised in the next month or so with the Government announced plans to sell about 75% of the business, or £50 million, and withhold the rest, with the option to sell the remainder within five years.

Data from Liason showed that locum pay increased to its highest rate on record as one in 30 locum doctors are paid more than £120 an hour. This is despite a cap on agency spending that was implemented in 2015.