My local council signed a contract with a Private Company, Serco to run its Swimming Pools with the aim of cutting the Council Tax bill.
Halfway through the contract Serco was operating at a loss and had run up bill of a quarter of a million pounds. They threatened pull out of the contract (don't know how) unless they could re-negociate the contract.
The end result was that the council now pays more than it did before, and the service is rubbish. If this is the shape of things to come, god help us.