Upcoming Events :
Housing Seminar: Partnerships with the Public Sector – Avoiding the pitfalls
Thu 31 May 2012
Minerva House, 5 Montague Close, London, SE1 9BB
Nick Clegg calls for greater mutualisation
Mon 16 Jan 2012
Nick Clegg has launched a new government effort to make employee ownership more widespread across the country.
According to the deputy prime minister, adopting the model of mutualisation favoured by department store chain John Lewis could have a number of advantages.
Speaking at Mansion House, Mr Clegg argued that redistributing power in this way could lead to employees becoming more engaged and productive in the workplace.
Furthermore, he stated that this approach often leads to a more dynamic and savvy workforce, improved staff retention rates and lower absenteeism.
Mr Clegg said this means businesses are well-placed to keep up with their competitors and thrive throughout the economic downturn.
The deputy prime minister added that the government is keen to see employee ownership move "into the bloodstream of the British economy".
Simon Randall, a consultant at Winckworth Sherwood, said : "Nick Clegg's views on employee owned vehicles is reflecting David Cameron's pre-election aspiration for the provision of public services.
"Described as the most significant shift in power since the right to buy legislation, the new Right to Challenge in the Localism Act will enable any group of local authority employees to take over their own service through an employee owned vehicle or cooperative.
"There are huge advantages in such an approach, both to the employees who will run their social enterprise effectively and efficiently as their own boss, able to share the rewards of success and to local taxpayers who should receive a better service. Winckworth Sherwood is providing advice to a range of local authorities gearing up for the commencement of the new right in April 2012 as it could transform local government."
