Local Partnerships mission is to enhance the quality of people’s lives by giving trusted, professional support to local public bodies to improve their ability to source and deliver high quality, cost-effective public services and Infrastructure .
We are jointly owned by HM Treasury and the Local Government Association. We provide the public sector with commercial expertise and know-how.
Who do we work with?
We work with all Councils, local authorities and public service providers.
Our work on the Mutuals agenda
New Models of service delivery – work with councils to explore the options for delivering services in a different way
Mutuals and spin outs – Mutuals information service, available to all. Supporting those spin outs which are have different features to generate and share learning, developing assurance mechanisms
Social investment – Social Enterprise Investment Fund
enhanced quality and better outcomes for the people who receive services
increased productivity – lower sickness, better use of resources
more likely to ride the ups and downs that a business faces
deliver services to the public free at the point of delivery and paid for from the public purse
Doesn’t preclude the enterprise from also delivering non-publicly funded services – generate additional income to reinvest in public service delivery
Could be a social enterprise, a joint venture with a public/SE/ private sector partner or a full employee owned private sector business
Defined by the way in which surplus is distributed
To be a Mutual it must have employee ‘ownership’ at it’s core
Possible models Social Enterprise Surplus typically distributed for the benefits of the local population [surplus used to fund discretionary services/develop a community fund/support the establishment of community groups etc] Social Enterprise /Private Sector JV Surplus split between private sector investors and community benefit fund – typically seen where Significant investment is needed Private Sector Surplus distributed to owners (Shareholders/employees) in the form of a dividends to shareholders and bonus to employees (John Lewis, Circle)
The push or pull effect: does it make a difference? New Entrants Spin out Existing Providers
What will I sell and who will I sell it to?
Is anyone else selling something similar?
How much will I sell it for?
What will be different to what I do now?
How do I get support from the council/public body?
How do I get the unions and staff on board?
What services should be funded by the public purse?
Are other sources of income available to help fund services that local people need and want?
How do we get the best value from services commissioned? How do we balance risk and control and safeguard our reputation?
How do we encourage communities to become less reliant on the public purse?
How do we support staff to stay in employment at a time when the public sector needs to reduce staff numbers?
How do we stimulate interest in Mutuals and support people on their journey of transition?
Top Down Bottom up its not just employees who want to do something different
Social Enterprise: some examples with different features
Cleveland Fire Brigade
Early stages of development
Purpose: to continue to deliver discretionary services and keep people in jobs
Aim: raise additional income through trading with the commercial sector (selling services to high risk industries), securing efficiencies through reducing bureaucracy and engendering staff ownership
Two step process – trading then full SE
Learning disability services
Nearing full business case
Opening a garden centre to supplement income and provide work for people who use their services
Adult Social Care
Need to present case for change to cabinet in September – lots of work undertaken but not sure if they have all the information needed to present a coherent case
Not looking to trade at this moment
Wants to examine the impact of personal budgets on income streams
Social Enterprise journey – realising aspiration
Options have not been assessed – need to conduct an options appraisal
Not aligning vision to the strategic direction of the council [only 48% of councils have a service strategy in place and many members have bad experiences of outsourcing efforts of the past] – consider degree of risk and control to be transferred. Engage members in the options appraisal process
Many focus on form verses function and viability – focus on what the business is there to do and then look at which form facilitates success
Not paying attention to the money: viability, costs, cash flow, liabilities, income – use the business planning process to develop commercial skills
Procurement specialists are too risk averse – consider options for market testing – is there risk of challenge? Can you award a sole provider or dowry contract? Do you have a competition strategy?
Staff and unions are not engaged – engagement all the way through the process
Not sure how to move to the new model – seek help and support, access learning from others
Drag and drop existing behaviours into the new model – pay attention to defining and developing the culture of the new business
Mutuals information service – sign posting service
Tools and products available
New models programme – business infrastructure, prototype sites to address new challenges
Link between local and central government
Contact [email_address] or the Mutuals information service
Communities of practice
Mutuals information service: signposting you to help and support
Not sure where to begin – what do I need to do? Who do I talk to first? What should I include in my expression of interest? How do I do an options appraisal? What is a commercial grade business plan? How do I know my business is sustainable? Is there any development funding?
My manager is blocking my ideas, our politicians don’t want to ‘outsource’ anything and don’t like ‘social enterprises’, I can’t get staff and the unions on board, how do I engage service users and the public?
Mutuals information service Phone: 02071877377 (staffed Mon to Friday 9am – 5pm – Voice mail 24/7) Email: [email_address] www.local.gov.uk/mutuals Free and confidential