Mutuals in the public sector: Supporting the Brave

Employee ownership can transform the public sector

Task Forces come and go. Some have dramatic success and others disappear into the long grass of political life.

The independent Mutuals Task Force (MTF) is no ordinary Task Force though. The remit of the MTF is to help public service entrepreneurs to spin out the services they manage into new businesses that are now commonly referred to as mutuals. As such the MTF is centrally involved in an emerging revolution in our public services – put simply, it is supporting the brave.

The MTF is, in the words of its Chairman, concerned with "unleashing the power of employee ownership and control". Its final report, published today, will be listened to right across the political spectrum.

Mutuals are officially defined as new businesses that have high degrees of employee ownership or control that have left their public sector parent body in order to manage and expand public services.

There is a wide variety of models and types of mutuals in terms of their legal form, business model, membership, stakeholders and investors, and they currently operate, or are being developed, in almost every part of the public sector.  There is now compelling evidence that public service mutuals raise the quality of the public services received by users, increase the returns on investment for commissioners and deliver many benefits for employees.

The Task Force report lauds the progress of public service mutualisation so far. But any revolution that seeks to change any ancien régime requires more and more collaboration from some key players inside that regime. And so, with clarity, the Task Force report makes a series of future demands on Government as a whole, individual departments, local councils, health bodies and also investors.

But the biggest "asks" are of Government. Hence, it advocates aggressive promotion of the Right to Provide – a key measure that gives employees the right to take over the public services they deliver.

It asks for proactive marketing of the range of information, advice, mentoring and finance that is available to employees contemplating mutualisation, and seeks an end to the current situation in which many new and existing mutuals compete for new contracts within processes that are designed for, and favour transactions with, large, long established, corporate organisations.

It encourages public service decision makers to overcome, via their pursuit of value for money, the cultural opposition of some of their colleagues to mutualisation in principle, irrespective of the evidence. And it does all this in the same breath as praising, quite rightly, the impressive work in support of public service mutualisation going on within some parts of Government.

It is a request for faster travel in the current direction. The recommendations and more are set out in detail in the Task Force report. Their implementation will need a major further injection of resource, energy and enthusiasm by and within Government and huge further changes in its operational behaviours. The implications for Government if it agrees with the recommendations are enormous.

This will only happen if diversification of public service delivery remains a priority for the Coalition.

I hope that the main recommendations in the report will be endorsed and acted on. I say that because I want to see a permanent obligation on Government, regardless of its political colour, to play a leading role in removing the barriers faced by employees who want to improve the services we depend on by setting up employee owned public service mutuals.

If the MTF report’s recommendations are implemented it will be fantastic to see even more public service entrepreneurs – the brave - as a direct result of that. If they are not implemented – the brave will remain the few.

Central Surrey Health is one of the largest public-sector mutuals in operation today

Iain Hasdell is the chief executive of the Employee Ownership Association the voice of employee owned businesses in the UK and a member of the Mutuals Task Force.

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Commons Confidential: Dave's picnic with Dacre

Revenge is a dish best served cold from a wicker hamper.

Sulking David Cameron can’t forgive the Daily Mail editor, Paul Dacre, for his role in his downfall. The unrelenting hostility of the self-appointed voice of Middle England to the Remain cause felt pivotal to the defeat. So, what a glorious coincidence it was that they found themselves picnicking a couple of motors apart before England beat Scotland at Twickenham. My snout recalled Cameron studiously peering in the opposite direction. On Dacre’s face was the smile of an assassin. Revenge is a dish best served cold from a wicker hamper.

The good news is that since Jeremy Corbyn let Theresa May off the Budget hook at Prime Minister’s Questions, most of his MPs no longer hate him. The bad news is that many now openly express their pity. It is whispered that Corbyn’s office made it clear that he didn’t wish to sit next to Tony Blair at the unveiling of the Iraq and Afghanistan war memorial in London. His desire for distance was probably reciprocated, as Comrade Corbyn wanted Brigadier Blair to be charged with war crimes. Fighting old battles is easier than beating the Tories.

Brexit is a ticket to travel. The Independent Parliamentary Standards Authority is lifting its three-trip cap on funded journeys to Europe for MPs. The idea of paying for as many cross-Channel visits as a politician can enjoy reminds me of Denis MacShane. Under the old limits, he ended up in the clink for fiddling accounts to fund his Continental missionary work. If the new rule was applied retrospectively, perhaps the former Labour minister should be entitled to get his seat back and compensation?

The word in Ukip is that Paul Nuttall, OBE VC KG – the ridiculed former Premier League professional footballer and England 1966 World Cup winner – has cold feet after his Stoke mauling about standing in a by-election in Leigh (assuming that Andy Burnham is elected mayor of Greater Manchester in May). The electorate already knows his Walter Mitty act too well.

A senior Labour MP, who demanded anonymity, revealed that she had received a letter after Leicester’s Keith Vaz paid men to entertain him. Vaz had posed as Jim the washing machine man. Why, asked the complainant, wasn’t this second job listed in the register of members’ interests? She’s avoiding writing a reply.

Years ago, this column unearthed and ridiculed the early journalism of George Osborne, who must be the least qualified newspaper editor in history. The cabinet lackey Ben “Selwyn” Gummer’s feeble intervention in the Osborne debate has put him on our radar. We are now watching him and will be reporting back. My snouts are already unearthing interesting information.

Kevin Maguire is the associate editor (politics) of the Daily Mirror

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 23 March 2017 issue of the New Statesman, Trump's permanent revolution