WIREDGOV

As part of the government's drive to realise the Big Society, more and more public services are being encouraged to 'go mutual'. 

The Institute and the Public Chairs' Forum (PCF) have published a short report offering practical advice on mutualisation as an alternative model for service delivery in Arms Length Bodies (ALBs). 

Mutualisation – an alternative model for ALBs features comment pieces from the PCF and the Institute for Government which identify and explore some of the broader issues relating to the development and application of ALB mutuals.  
 

The key messages of the report are: 
* employee mutuals have the potential to be an important part of the current reform of public services 

* mutualisation needs to be thought about in the context of the specific organisation and its objectives 

* mutuals represent an opportunity and a challenge in equal measure 

* mutualisation comes in many different forms.  

Legal structures 
The guide includes a contribution from Barry Stimpson, Senior Partner at law firm Reynolds Porter Chamberlain. He provides information on the different legal structures that can potentially underpin mutualisation in ALBs. 


Vehicles for alternative models for service delivery in ALBs include: 
* Limited Liability Partnerships 
* Joint Venture Model 
* Community Interest Companies  

 Chair of the Public Chairs' Forum, Chris Banks CBE, said: 
"I believe that everyone who runs an ALB should seriously consider whether employee mutuals would help them to improve the efficiency and effectiveness of their organisation. 

"That's why we have decided to build on our previous report on Alternative Models for Service Delivery, to look specifically at mutualisation options in ALBs. This paper is published jointly with the Institute for Government, authors of the influential Read before Burning report."  

 Speaking about the guide, Lord Adonis, Director of the Institute for Government, said: 
"Public sector mutuals offer the possibility of transforming the way that many of our public services are delivered. 

"My personal experience, working on reforms such as City Academies, taught me that new service models can often be the best catalysts for innovation and I see mutuals as the latest example of this. 

"The possibilities are vast, but so are the challenges which is why this report, published in conjunction with the Public Chairs Forum, is particularly timely." 

 

For more information  
Download a copy of Mutualisation: an alternative model for ALBs 

Read the Institute's report Read Before Burning: how to increase the effectiveness and accountability of quangos 

Read Adrian Brown on the IfG Blog: The feeling's mutual