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.

Photo: Getty
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Michael Carrick is the “Geordie Pirlo” that England misunderstood

The Manchester United legend’s retirement announcement should leave Three Lions fans wondering what if?

That it came in the months leading up to a World Cup arguably added an exclamation point to the announcement of Michael Carrick’s impending retirement. The Manchester United midfielder, who is expected to take up a coaching role with the club afterwards, will hang up his boots at the end of the season. And United boss Jose Mourinho’s keenness to keep Carrick at Old Trafford in some capacity only serves to emphasise how highly he rates the 36-year-old.

But Carrick’s curtain call in May will be caveated by one striking anomaly on an otherwise imperious CV: his international career. Although at club level Carrick has excelled – winning every top tier honour a player based in England possibly can – he looks set to retire with just 34 caps for his country, and just one of those was earned at a major tournament.

This, in part, is down to the quality of competition he has faced. Indeed, much of the conversation around England’s midfield in the early to mid-noughties centred on finding a system that could accommodate both box-to-box dynamos Steven Gerrard and Frank Lampard.

As time went on, however, focus shifted towards trequartistas, advanced playmakers and those with more mobile, harrying playing styles. And the likes of Jack Wilshere, Ross Barkley, Jordan Henderson and Dele Alli were brought into the frame more frequently than Carrick, whose deep-lying capabilities were not utilised to their full potential. That nearly 65 per cent of Carrick’s England caps have come in friendlies shows how undervalued he was. 

In fairness, Carrick does not embody similar characteristics to many of his England midfield contemporaries, including a laudable lack of ego. He is not blessed with lung-busting pace, nor is he enough of a ball-winner to shield a back four solo. Yet his passing and distribution satisfy world-class criteria, with a range only matched, as far as England internationals go, by his former United team-mate Paul Scholes, who was also misused when playing for his country.

Rather, the player Carrick resembles most isn’t English at all; it’s Andrea Pirlo, minus the free-kicks. When comparisons between the mild-mannered Geordie and Italian football’s coolest customer first emerged, they were dismissed in some quarters as hyperbole. Yet watching Carrick confirm his retirement plans this week, perfectly bearded and reflecting on a trophy-laden 12-year spell at one of world football’s grandest institutions, the parallels have become harder to deny.

Michael Carrick at a press event ahead of Manchester United's Champions League game this week. Photo: Getty.

Where other players would have been shown the door much sooner, both Pirlo and Carrick’s efficient style of play – built on patience, possession and precision – gifted them twilights as impressive as many others’ peaks. That at 36, Carrick is still playing for a team in the top two of the top division in English football, rather than in lower-league or moneyed foreign obscurity, speaks volumes. At the same age, Pirlo started for Juventus in the Champions League final of 2015.

It is ill health, not a decline in ability, which is finally bringing Carrick’s career to a close. After saying he “felt strange” during the second-half of United’s 4-1 win over Burton Albion earlier this season, he had a cardiac ablation procedure to treat an irregular heart rhythm. He has since been limited to just three more appearances this term, of which United won two. 

And just how key to United’s success Carrick has been since his £18m signing from Tottenham in 2006 cannot be overstated. He was United’s sole signing that summer, yielding only modest excitement, and there were some Red Devils fans displeased with then manager Sir Alex Ferguson’s decision to assign Carrick the number 16 jersey previously worn by departed captain Roy Keane. Less than a year later, though, United won their first league title in four years. The following season, United won the league and Champions League double, with Carrick playing 49 times across all competitions.

Failing to regularly deploy Carrick in his favoured role – one that is nominally defensive in its position at the base of midfield, but also creative in providing through-balls to the players ahead – must be considered one of the most criminal oversights of successive England managers’ tenures. Unfortunately, Carrick’s heart condition means that current boss Gareth Southgate is unlikely to be able to make amends this summer.

By pressing space, rather than players, Carrick compensates for his lack of speed by marking passing channels and intercepting. He is forever watching the game around him and his unwillingness to commit passes prematurely and lose possession is as valuable an asset as when he does spot an opening.

Ultimately, while Carrick can have few regrets about his illustrious career, England fans and management alike can have plenty. Via West Ham, Spurs and United, the Wallsend-born émigré has earned his billing as one of the most gifted midfielders of his generation, but he’d never let on.

Rohan Banerjee is a Special Projects Writer at the New Statesman. He co-hosts the No Country For Brown Men podcast.