The Making it happen report, published on Employee Ownership Day 2015 and also developed with law firm Fieldfisher, outlines the steps needed to develop a spin out.
Today’s publication comes after the Conservative Party’s election manifesto pledged to increase the number of public service mutuals in an attempt to boost productivity. In the last parliament, more than 70 such organisations were created from public service providers, covering sectors such as health and social care, leisure and education.
The guide shows employees and others involved in public service provision how they can make the case for mutualisation, as well as possible governance models, and advice on business plans. It also covers how to implement a plan for employee ownership, including financial management, planning and control, cash management, financial reporting as well as legal factors.
Launching the guide, CIPFA chief executive Rob Whiteman said employee ownership was “an increasingly important organisational model for the delivery of public services”.
There was evidence that the model can help improve productivity, staff morale and innovation, he highlighted, which ultimately leads to better value for money services for taxpayers.
“Finance professionals are critical to the development of sound business plans and accountants, senior managers and non-executives will find this guide to be an invaluable resource on the benefits of setting up an employee owned public service mutual.”
EOA chief executive Iain Hasdell said existing employee-owned public service spin outs were “performing brilliantly”, and the guide would play an important part in the ongoing growth of the employee-owned sector.
“We are grateful to our partners at Prospects Fieldfisher, and CIPFA for their help and support in the production of this important guide,” he added.
