FabSwingers.com forum: Local Authority Spin Off Fails

By *icketysplits OP Woman
over a year ago

Way over Yonder, that's where I'm bound

Interesting to read that one of the lauded Local Authority spin off Community Interest Companies is having to close it's doors because of the Work Programme payment by results regime. Without the local authority funding behind it Eco-Actif Services in Sutton has not been able to secure enough loan finance to manage the public contracts on Families and the Work Programme.

Can Mutuals, Trusts and charity forms coming out of local authorities and other public agencies such as health compete in the marketplace?

By *abloBackMan
over a year ago

London

The problem with these schemes are the facilitators running these schemes are on fixed contracts and are only interested in keeping them going to the end of their contract. They spend more time trying to secure funding to extend the contract that attempting to grow the business to a sustainable level. Once it reaches a sustainable level and can operate with grants and subsidies. The facilitator is no longer needed and is out of a job

By *icketysplits OP Woman
over a year ago

Way over Yonder, that's where I'm bound

There is an issue that these spin offs are seen as a way of reducing local authority spending. Staff transfer over with the same pension and salary rights. Often there is a period where the local authority provides some form of bank-rolling but once that ends and they have to compete on the same terms as the rest of us can they survive?