By David Bicknell
An article has appeared on the Civil Society website which seems to muddy the waters over the creation and role of public services mutuals.
The article says that Acevo, the Association of Chief Executives of Voluntary Organisations, has warned that new public services mutuals which have spun-out from government, risk inhibiting other providers in the voluntary and private sector, as they are guaranteed business from the state to support their incubation.
The piece quotes Sir Stephen Bubb, chief executive of Acevo, warning that new spin-outs from government have guaranteed business from the state to support their incubation, so risk inhibiting competition.
“Care must be taken to ensure that mutualisation does not block or slow down potential service providers from other sectors,” he says. “And the Taskforce should seek evidence that this is not happening with any of the pathfinders or their predecessors in the NHS.”
Sir Stephen is also quoted as saying that there is a danger that some public sector agencies may see mutual spin outs as a way to get wages and costs off their books.
It all depends on what’s taxed more. In Switzerland, if you own an aretpmant, you have to pay extra taxes as if you get income from renting it out. As a result, home ownership is only 30-something percent.