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Spin-outs need to be sold a lot better to the public sector

by Craig Dearden-Phillips 21/03/2014

At the moment, opinion inside the public sector is very divided about whether spinouts are worth the trouble.   One prominent London council Chief Executive told me that me that they were ‘too much trouble to set up, didn’t assure us any savings and didn’t actually change enough about the service’.  He let one go but stopped there.  It clearly wasn’t enough of an answer.    So let’s be a lot clearer about how spin-outs help Councils to manage down demand, to take out cost and to innovate.   These are the worries that keep Council and NHS leaders awake at night, not aspirations for more empowered workforces or mutual models of governance.  The benefits of spin-outs ought to be what sells this fantastic idea, not the wrapper it comes in.

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