Local Government


Is fear of failure holding back public service mutuals and spin-outs?


A vibrant and diverse


economy of public service providers, many of whom will emerge as spin-outs or employee-led mutuals from the public sector, is at the heart of the Government’s blueprint for public service reform in the Open Public Services White Paper and the creation of the ‘Big Society’. The Cabinet Offi ce’s vision is for one in six public servants to have formed themselves into public service mutuals by 2015. In December the Cabinet Offi ce announced a new support programme for prospective


public service


mutuals. In local government this will be given legislative force under the ‘community right to challenge’ in Sections 81 to 86 of the Localism Act.


This ambitious change


programme will take many years to bed down. In addition


to the practical


obstacles faced by putative spin-outs, in terms of access to funding, practical advice and assistance, and the costs pressures created by TUPE legislation designed to protect the rights of workers, will a signifi cant brake on progress be the public sector’s attitude to failure? If we are to let a thousand fl owers bloom, inevitably some will wither and die. Can commissioning authorities and


elected members


tolerate this and how do we plan for and respond to such failures?


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