Local government groups net awards from £10m mutual support programme

The Government has handed out the first awards from its £10m Mutual Support Programme, with the funds going to three different local government groups.

3BM (Three Boroughs mutual), which is seeking to spin out from Hammersmith & Fulham Council and provide support services to schools, received £55,832.

The money is being spent on legal advice from law firm Field Fisher Waterhouse on the process of tendering for a joint venture partner.

The second highest award went to Hazlitt Arts Centre, where staff are looking to spin out of Maidstone Council.

The £18,927 is aimed at giving them support to improve their business skills, with assistance from law firm Bates Wells & Braithwaite working with Mutual Ventures.

The third award of £10,000 went to a youth services organisation run by employees of Blackpool Council.

They will receive support from a new SME, Social Purpose Business Partners.

Cabinet Office Minister Francis Maude said: “Mutuals can deliver more efficient services for the public - that is why we are ending the binary choice between private and state provision. We want to see a new wave of mutuals as more organisations benefit from our Mutual Support Programme and more entrepreneurial frontline staff pioneer the way for others.

“Fledgling mutuals will get professional expertise and advice that they would otherwise be unable to access. And we will build a valuable knowledge sharing database of what works, as well as what does not, that other upcoming mutuals can draw upon.”

A report published by the Cabinet Office in December 2011 revealed that public sector staff looking to establish mutuals had faced a number of barriers, including legal issues. Access to legal and professional expertise was identified as one of the key areas where support was needed.

Advice on cross-cutting technical issues, “such as procurement, and liabilities from VAT, pensions and TUPE" was also seen as crucial.