The Localism Bill introduced in December 2010, outlines Government measures to shift decision-making powers,  via a series of ‘rights', to local communities. The theory is that this will give them the opportunity and confidence to  deliver, what the Government hopes will be, more innovative and efficient services; embodied in the six essential  actions of decentralising from Big Government to Big Society. 

With specific reference to the sport, leisure and cultural sectors the biggest impact is likely to stem from three main rights: to build, to buy and to provide. We focus below on the latter.

The right to provide

Public services employers are expected to accept suitable expressions of interest from front-line staff who wish to take over and run their services as ‘not for profit' or mutual organisations.

Pathfinder projects have been in place since August 2010 covering health, education, children's services, prisons and housing. The only current reference to leisure services is one about Greenwich Leisure featuring on the panel of mentors including some of the country's most successful businesses and leaders in employee ownership models.

Although there has been a sharp rise in alternative trust and private sector delivery models as local authorities seek to exploit NNDR and VAT benefits, we are yet to witness much true innovation; for example, sports development teams taking the plunge and become independent employee led mutuals providing services on a commissioned basis.

Why is this?

Many will cautiously be sitting tight to let the dust settle and wait for innovators to develop creative solution and resolve immediate challenges. However, as a discretionary service, there is a real and present danger that the dust may not settle at all or, worse still, the ‘powers that be' may simply choose not to provide cultural and leisure facilities and activities as they focus in on statutory public services. There is, thus, a need for urgency to ensure that specialist knowledge is retained and the budget cut impact on communities services is minimised or at least effectively managed.

Cobbetts LLP is one of the Cabinet Office mentors and supports mutuals as providers of public services in health, children's services, leisure and education. It is working closely with KKP to raise awareness of the potential across the sector - ready to get the ball rolling and ensure that the strategic commissioning framework is right from the outset to:

• Encourage employee expressions of interest.
• Develop criteria by which to judge the appropriateness of each service and each proposal.
• Move a council to being a good, but demanding, client - able to manage the mixed provider market.
• Support the development of employee based terms and other business proposals.

If this is of interest to you get in touch or....watch this space for news of forthcoming events to consider opportunities for employees and local authorities alike.