The market still has no real rivals: Professor Le Grand disagrees

Julian Le Grand, Chair of the LSE’s Mutuals Taskforce, has responded to Sir Samuel Brittan assertion in the FT, that “there is simply not enough evidence or analysis to support a politically ordained wholesale transfer of enterprises” to worker-owned entities or employee-led mutuals (“The market still has no real rivals”, January 13).

He refers to the wide review of the evidence on the effectiveness of employee-led mutuals produced by the Mutuals Taskforce, andbased on a number of systematic reviews undertaken by academic research units and consultancies.

The conclusion:

When operating in competitive markets, these mutuals consistently demonstrated:

· higher consumer satisfaction,
· lower absenteeism
· lower staff turnover
· lower production costs than their non-mutual competitors.
· faster job creation
· more resilience in economic downturns.

He concludes that the report offers enough evidence “to warrant a substantial injection of competition from such mutuals into both private and public sectors”.

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