Taskforce bids to make mutuals a mainstream option for public services

A report by the government's mutuals taskforce has found that the number of public sector mutuals has increased six-fold since 2010, meaning barriers must be overcome to make what the taskforce calls "a burgeoning movement" become "a mainstream option for public service delivery." In the report, Public service mutuals: the next steps, the taskforce, chaired by Professor Julian Le Grand, makes a series of recommendations designed to give mutuals a launch pad and to overcome the barriers facing public servants who form mutual businesses and take control of their services. The report shows that since 2010 the number of public service mutuals has increased from nine to at least 58 with a further 40 projects in the pipeline. In the same time, the services in which mutuals are developing has diversified from four (health, social work, education and leisure) to 12 (including fire services, housing and libraries). One of the key mutuals projects is at Hammersmith and Fulham council, which has been designated by the Cabinet Office one of its 'pathfinder' projects to explore new ways of delivering public services more efficiently. The services include financial management support and budget planning, IT and building development projects, as well as strategic advice to councils. In its report, the mutuals taskforce says that emerging, new and established mutuals all face challenges. Underlying many of these is the basic fact that mutuals move out of the public sector as fully functioning, established organisations, that are already delivering services on which people rely. This contrasts significantly with the more common organisational development path followed by small and medium sized enterprises: organic growth and development. While the challenges that mutuals face are not insurmountable, the taskforce believes there is much more that can be done to lower or actually remove both the real and the perceived barriers to mutualisation and to encourage more staff who are interested in pursuing these opportunities to do so. Overall, the taskforce says, it has become aware of the importance for leaders and employees within emerging and established public service mutuals to continue to grow and develop commercial skills. These are partly technical skills, but this is also part of a wider culture change from delivering services within a public sector organisation to entrepreneurial and innovative approaches to delivering services through new independent organisations. Professor Le Grand, said: "This is no utopian fantasy. Mutuals deliver higher quality services at lower cost to tax payers. So it's with some jubilation that I can report a movement, led by truly entrepreneurial public servants, has taken root and is growing. But we simply cannot rely on there being enough exceptional leaders to make this a mainstream delivery option. The path to mutualisation must be made easier. "Public service mutuals develop differently to other SMEs, often becoming businesses overnight. This must be reflected in new regulation, new investment and greater support. But, most importantly, we are calling for change inside the public sector. The will to develop mutuals and improve public services is there at the very top of government and on the frontline. But too often there is a gulf in the middle where risk-averse managers, ignorant of the benefits, impede progress." Francis Maude, the Cabinet Office minister, said: "Frontline staff are the real experts: they know what's important to the people they help every day. Forming a mutual lets them focus on local needs with less bureaucratic interference. It's no surprise that as more services mutualise we are seeing real benefits. "We will now consider how to take the recommendations forward but, in particular, I am already aware of the problems with EU procurement regulations and will push for reform." Some of the task force's key recommendations include: • The government, led by the Cabinet Office, should continue to negotiate for greater clarity of and improvements to EU public procurement rules that support newly formed public service mutuals and for clarity on existing rules. • By December 2012 each relevant government department should set out a clear plan and vision for developing and implementing mutualisation policy, including Rights to Provide. • Each department should set out a clear pathway for staff wishing to pursue mutualisation in the service areas for which the department is responsible, working closely with the Mutuals Support Programme if and when support is required. • The Cabinet Office should convene and co-ordinate a network of 'mutuals ambassadors' to drive forward the creation and growth of mutuals on the ground. • Departments should use their websites and other forms of communication with workforces and service providers to signpost sources of information, advice and support for leaders and employees interested in mutualisation. • The Cabinet Office (including the Government Digital Service) should work with departments to ensure that the Mutuals Information Service is proactively marketed across relevant government communication channels, including cross-government and individual departmental websites. • The Cabinet Office should work with other government departments, in particular the Department for Business, Innovation and Skills, to commission the collection and analysis of evidence emanating from mutuals providing public services and working in other sectors across the economy. 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