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Institute for Government statement following yesterday's Cabinet Office announcement on mutuals

Following yesterday's Cabinet Office announcement on mutuals in public services Adrian Brown, Fellow at the Institute for Government leading research on mutuals and the Big Society said:

"While employee-owned organisations do tend to perform better - staff have higher morale, fewer sick days and diversity of supply in public services encourages competition - it doesn't necessarily follow that mutuals free the front line from bureaucracy.

"The Cabinet Office proposals don't yet fully address the challenges facing the front line service in making this a reality. Creating mutuals is a complicated process, legally and managerially and runs the risk of being very bureaucratic. Social workers and health visitors will need to not only run services but become entrepreneurs and compete on the open market against experienced businesses.

"Those on the front line, while positive, say to us that they are still looking for clear examples that relate to their work. Francis Maude is right to help mutuals reach their potential, but we shouldn’t let the warm, fuzzy feelings that mutuals tend to generate mask the tough choices and frankly hard work from all concerned, that the mutuals agenda demands."

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