Government pledge to outsource one million public sector workers remains priority
November 19, 2011
The Coalition Government’s pledge within their joint manifesto to outsource over one million public sector workers remains a key priority for the public sector. The commitment to allow public sector workers to own or run their own companies outside of public sector control remains a key objective of Government. The model of a Mutual similar to a John Lewis style approach remains the most attractive, as do alternative models such as Local Authority Trading Companies or Social Enterprises.
The primary sticking point for Council’s remains procurement processes which makes the LATC model particularly attractive in both driving through much needed efficiencies as well as enabling former public sector services to operate as a private company in the wider market. Understanding of the ‘Teckal Exemption’ is key for Councils which enables such externalisations to occur without going to the market as well as the drafting of the business case to prove value for money as the statutory instrument to validate such a transfer.
CHS have now worked successfully with over 12 Councils in scoping and enabling Councils to go down this road. As such we are happy to offer consultancy advice so please contact us .