By Vivienne Russell | 7 December 2012
Councils see mutual organisations as a ‘credible’ way of providing public services, the head of the Cabinet Office’s Mutual Support Programme has told Public Finance.
Rannia Leontaridi said there was ‘substantial momentum’ building up, with around 100 organisations either up and running or in the process of mutualisation.
Councils ‘have seen the outcomes of mutuals like [adult education provider] Aspire Sussex Ltd, which have grown and in some cases have doubled their workforce or increased their turnover,’ she said. ‘Councils can see that outcomes are being achieved and that absenteeism is going down.
‘The ability to articulate the successes of mutuals make councils more optimistic and strategic than they have been in previous years.’
Leontaridi added that, for frontline workers, mutualisation offered more autonomy, freedom to innovate and the ability to respond quickly to the needs of service users. She cited high satisfaction rates with the services mutuals are providing.
Acknowledging that mutualisation brought with it the risk of losing as well as winning contracts, she stressed that the organisations’ strong track record made them strong contenders in the public service marketplace.
‘We have seen mutuals grow, diversify, have a secure record of excellent performance that would make any commissioner think twice before giving a service to somebody else and jeopardising the service the mutual provides to the public.’
Based within the Cabinet Office, the Mutual Support Programme helps fledgling mutuals develop business plans and growth strategies. It has a £10m five-year budget to buy in specialised legal advice.
Leontaridi, who heads the programme, was speaking to PF at a Cabinet Office event, held on November 30, to promote awareness of mutuals among local authorities in London and the Southeast.
Addressing delegates, she dismissed concerns that mutuals could crowd out already-struggling charities and community groups that provide public services.
‘I wouldn’t say there is competition out there,’ she said. ‘Some of the small mutuals that spin out are incredibly specialised and operate in exactly the same field as charities but they find that they win contracts when they do things together.
‘So I consider mutualisation and what comes out of the spinning out of public services to be a strength in working with the third sector.’
Yesterday, a report from the Commons community and local government committee criticised the Mutual Support Programme for failing to link up with the Department for Communities & Local Government’s work on localism. The MPs highlighted an absence of the ‘rigour, enthusiasm and understanding’ essential for mutuals to succeed.
But the Cabinet Office responded by saying it was working closely with the DCLG and there was ‘real enthusiasm’ for mutuals among local authorities.
