Local Gov reports that there are now 100 mutuals delivering £1.5bn of public services and employing 35,000 people, according to the latest figures.
The Cabinet Office said it had supported public sector employees to spin out public services through a ‘modest’ £10m programme. It said employee control provides greater value for the taxpayer, boosts staff morale and productivity and leads to better services.
Minister for the Cabinet Office Francis Maude, said: ‘As part of our long-term plan for a stronger economy we are determined to drive up public sector productivity, which flatlined from 1997 to 2010. We need innovative new ways of delivering better services for less money, so we are helping public sector workers spin out to form mutuals.