They say size doesn’t matter. When it comes to certain key services, however, a sizeable storm is gathering. And the consequences could re-shape York itself.

Back in the 70s the economist EF Schumacher wrote a book entitled Small Is Beautiful. His philosophy was that, for the sake of our fragile planet, if nothing else, we should scale back our frantic consumer-driven way of life. He argued that industries would be more secure and appropriate to real human needs if they were small-scale, decentralised, energy-efficient, environmentally sound, based on skilled crafts and human labour - and, above all, controlled through local democracy.

All very well, you might say, when the globalisation that dominates our lives is the polar opposite of Schumacher’s “small is beautiful”.

However, recent scandals around the outsourcing of local public services to huge international private companies have stirred his ideas back into life. Last week, following the collapse of the giant Carillion, came more grim news about supersize corporations bloated by taxpayers’ pounds.

Capita, whose major contracts range from collecting the BBC licence fee to electronic tagging of prisoners, saw its share price nearly halve in a day following a financial update that reignited concerns over the outsourcing industry and the stability of our public services. The update led to £1bn being wiped off the stock market value of the firm and real worries about the pension scheme.

I for one was shocked to learn the extent of Capita’s operations. The outsourcing multinational has embedded itself in the British state, running GP services, hospital parking, even the Government’s food research agency.

Does that matter to us in York? In terms of jobs the answer is undeniable. Hundreds of families’ livelihoods as well as hopes for a dignified retirement through an occupational pension rely on projects outsourced to the private sector. Then we have the transformative development at York Central looming. Big decisions have yet to be made about how we deliver that vital project to our city.

On a wider level, the interface between mega private firms and local councils is increasingly in question.

One council in particular is in the news. Preston is an area that has suffered long term deprivation. After the banking collapse of 2008 the town found itself in rapid decline, at which point the council took the visionary step of applying the “small is beautiful” philosophy to the outsourcing of public contracts. Instead of using big multinationals like Carillion and Capita, they pursue a deliberate policy of favouring small local suppliers and co-operatives where possible. The result has been a big increase of taxpayers’ money staying in the locality rather than being siphoned off.

“If there is anything we are trying to protect ourselves against, it’s shareholders,” said Preston councillor Martyn Rawlinson. “Those people who live hundreds, thousands of miles away and just extract value from our community.”

Closer to home, innovative local people are also busy sharing such a vision. As you read this, the derelict site of the former Reynards Garage is being reborn into a hub to shop, eat and drink and socialise. Spark:York is recycling shipping containers and other materials to create 24 units for small scale York-centred enterprises. As a community interest company, limited by guarantee, there are no shareholders. Instead, they are developing a co-operative model with tenants, and consulting groups with roots across the city to make sure their service has a community focus.

One of Spark:York’s directors, Sam Leach, said that during construction and planning, where reasonably possible, they favoured local suppliers and tenants who sourced locally, much like Preston council.

Of course, initiatives like Spark:York are by their nature an experiment. We are so used to monolithic multinational chains when it comes to how we shop and spend our leisure time that the whole concept feels daring. But in an age where we are beginning to understand the ruinous cost to the environment of shunting goods, services and resources halfway round the globe, maybe the time for “small is beautiful” has truly arrived.