Central Government is promoting the role of staff-led mutuals in the delivery of public services. Local Government has been moving to explore and support staff-led spin-outs in a variety of ways over the last couple of years and their employees are included in the kinds of groups eligible to submit expressions of interest under the 'Community Right to Challenge' in the Localism Act.
The LGA has, with partners, produced a series of case studies from councils detailing their mutual spin outs for the delivery of public services.
To access the case studies you need to login to the Workforce Matters Knowledge Hub Group (new users will need to register). The Knowledge Hub gives the the opportunity to interact, comment and develop the case studies.
The case studies in the K-hub are:
Case Study/ organisation | Local authority | Political control | Services / sector | Developments | Individual transition challenges |
---|---|---|---|---|---|
3BM School support services | Tri-borough (Royal Borough of Kensington and Chelsea, Westminster City Council, London Borough of Hammersmith and Fulham) | Conservative | School support services |
Staff: 40 Budget/turnover: £3million per annum Main clients: Individual schools, councils (Treated as a) Part A service |
Procurement processes for an independent sector partner to join the mutual joint venture Working across three London boroughs to manage processes such as TUPE |
Aspire Sussex | West Sussex County Council | Conservative | Adult and community learning |
Staff: 560 (65 permanent staff delivering 46 full time equivalent and 495 tutors delivering 37 full time equivalent) Budget/turnover: £4.5million per annum Main clients: 22,000 students in 200 community venues Part B service |
Developing the business case and planning the transition Timing – ensuring the business case was prepared in line with Council decision making processes Engaging a large staff group |
The Hazlitt Arts Centre | Maidstone Borough Council | Conservative | Arts and Theatre |
Staff: 40 (5 full time, 35 part time) Budget/turnover: £1.1million per annum Main clients: Maidstone residents and surrounding communities, arts groups. Part B service |
Ensuring a level playing field for all potential bidders once the contract for the service is put out to tender Ensuring the new mutual is established by the time the invitation to tender is issued by the Council so it can bid to provide the service |
Project Salus | Kent County Council | Conservative | Social skills, educational outcomes, emotional health and wellbeing (for children, young people and their families) |
Staff: 34 staff (most are term time only) Budget/turnover: £800,000 pre spin-out, estimated £1.2million first year of trading Main clients: Children's workforce and schools, children, young people and families Part B service |
Lack of understanding amongst stakeholders of the process to be undertaken when pursuing a public sector mutual spin-out (Project Salus was an early spin-out) Disseminating advice and information gathered by the leaders of the transition amongst stakeholders No access to external legal advice |
RBKC Youth Services | Royal Borough of Kensington and Chelsea | Conservative | Youth services |
Staff: 170 (70 full time equivalent) Budget/turnover: £5million per annum Main clients: Royal Borough of Kensington and Chelsea Part B service |
Communicating the idea to pursue a mutual spin-out and the details of the spin-out (e.g. employee terms and conditions) to all staff Establishing viability in a changing funding landscape |
Sensing Change | Suffolk County Council | Conservative | Sensory impairment services |
Staff: 44 (22 full time equivalent) Budget/turnover: £1.8 million Main clients: Adults with sensory impairment (sight and/or hearing loss) Part B service |
Negotiating a phased transition (as a Social Work Practice Pilot) with the Council and the Department of Health Establishing the associated governance arrangements |
Sunshine Care C.I.C. | Rochdale Metropolitan Borough Council | Labour | Home care/support |
Staff: 26 part time Budget/turnover: not stated Main clients: 54 individual customers Part B service |
Finding the right support and advice and accessing expertise e.g. legal and financial Maintaining positive relationships with the Council during a very rapid transition |