Tuesday 9 November 2010

Ambulance and fire services could be turned into John Lewis-style mutuals, says Francis Maude

The Government has already unveiled plans to turn Government agencies into John Lewis-style mutual organisations where the staff have a stake in how they are run. Francis Maude, the Cabinet Office minister, said the plans could be expanded to the fire and ambulance services.

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Maude told The Daily Telegraph that he would probably stop short of trying to mutualise “the armed forces or the police”. He added: “Outside that, would you exclude all uniformed services? No, not necessarily. Ambulance services could easily be - I know there is one that is interested in doing it. We have to assume that this is applicable across the public sector unless there is a very pressing reason why the model won’t work.”

Staff would be given their annual budget and allowed to run the service themselves. Turning fire and ambulance services into mutual bodies would allow staff to hold their management to account and give them a better say in running the organisation. A similar scheme was already run by Central Surrey Healthcare, a not-for-profit organisation that provides community nursing to the people in central Surrey.

Maude said there would be “a genuine co-ownership, genuine mutual model. There is no profit share, there is no ‘tradeable’ share, although they all own a share”. The benefits were felt among staff, who felt they had a stake in the workplaces. He said: “They are paid on exactly the same basis as they were before. Their financial motivation is exactly the same and yet their mindset has been utterly transformed. They would say they are working harder but we are much happier, more fulfilled; the ability to make a difference, to see what needs to be done and make things happen.”

Lord Young, a former Trade minister under Margaret Thatcher, is already looking at how to turn public bodies which charge fees - such as the Driving and Vehicle Licensing Agency or Companies House - into mutual organisations. Staff would then be allocated shares allow them to share in the agency's success. The shares would then be sold or handed back when they leave. Lord Young is expected to provide more details about his plans later this month.