Contracts have been a key element in the recent reform of British publ
ic services. Their introduction has formed part of a broader process o
f change in which the market structures and values have featured promi
nently. In practice, contracts have both brought benefits and presente
d problems. More particularly, greater organizational formality has ra
ised some important issues - the role of trust and the form and practi
ce of accountability prominent among them. Evidence from a recent ESRC
-supported study shows that some services (the simpler ones) have gene
rally gained from the reforms; but the evidence for more complex ones
is equivocal at best.