Parliament erupted when Prime Minister Theresa May destroyed Jeremy Corbyn’s argument against private companies working for public services.
The PM attacked the Labour leader on his party’s tax policies saying: “What Labour oppose isn’t just the role for private companies in the public service, but the private sector as a whole.
“The vast majority of this country in employment are employed by the private sector.
“But the Shadow Chancellor classes businesses as the real enemy. Labour wants the highest taxes in our history.
“Labour policies will cause a run on the pound. A Labour party has turned its back on investments, on growth, on jobs.
“A Labour party that will always put politics before people. “
The Labour leader criticised the Government’s use of private companies in the public sector after the failure of multinational construction company Carillion.
Mr Corbyn said: “Under this Government, virgin and Stagecoach can spectacularly mismanage the east coastline and be let off a £2billion payment.
“Capita and Atos can continue to destroy lives thorough damages and disabilities assessments of many people with disabilities and win more government-funded contracts.
“These corporations need to be shown the door.
“We need our public services provided by public employers with a public service ethos and a strong public oversight.”
The Prime Minister replied: “Can I first remind the honourable gentleman that a third of the Carillon contracts were led by the Labour Government.
“We are making sure in this case that public services are continued to be provided, that the workers in those services are looked after and taxpayers are protected.”