Latest Public Sector News

23.07.14

Maude expects public service mutuals growth

Cabinet Office minister Francis Maude has stated that the government is “determined to drive up public sector productivity” through the expansion of new spin-out companies part-owned by staff.

Speaking at a Downing Street reception, he will describe how 100 mutuals are delivering nearly £1.5bn of public services, while employing 35,000 people.

However, the mutuals have been condemned by unions which feel the government’s actions are an attempt at ‘privatisation through the back door’.

Currently, the Cabinet Office has a £10m programme which has helped the development of mutuals. Maude said: “As part of our long-term plan for a stronger economy we are determined to drive up public sector productivity, which flat lined from 1997 to 2010. We need innovative new ways of delivering better services for less money, so we are helping public sector workers spin out to form mutuals.

“There are now 100 public sector mutuals across England and Wales. These are new businesses, employing 35,000 people and delivering services from community health to libraries.”

But a Public and Commercial Services Union spokesperson told PSE that forcing through mutuals, often against the will of the workforce, is a staging post on the way to privatisation.

He said: “Francis Maude has been very clear in the past that he would have no problem with mutuals being fully hived off in the future, so the trajectory is very clear that privatisation is what they want to do – just in a different way.

“When they set up the first, and currently the only mutual, in the civil service MyCSP – the public sector pension provider – it was opposed by the staff to such an extent that they took industrial action against it. So the word mutual in that sense loses all its meaning.”

It was also suggested to PSE that if public services are hived off in the future it could lead to further job losses in the sector.

(Image: c. Cabinet Office)

Tell us what you think – have your say below or email opinion@publicsectorexecutive.com

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been the r more > more last word articles >

public sector focus

View all News

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

Utilising data to best deliver meaningful public services

14/11/2019Utilising data to best deliver meaningful public services

Public Sector Executive’s Matt Roberts explains how living in a modern, interconnected world, as we do, means public sector organisations cannot afford to ignore the rol... more >
read more blog posts from 'the raven' >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >