Finance

Social Firm no longer subject to council recharges that bear no relation to services used

Lose cashflow protection

Freedom to purchase from companies that offer better terms than who we have to use currently because we are part of the council (have to use approved suppliers only)

Lose buying power of LA for goods and services (e.g. hefty discount on stationery supplies etc.)

Not subject to LA initiatives and pilots that have a cost implication to the business but no benefit to its aims and objectives

Profits can be spent or saved as you see fit and not swallowed up by the General Rate fund every March

Access to additional funding opportunities outside LA

Able to control budget which is not affected by other council department’s budget cuts etc.

Freedom to access loans as and when required

Employment

Ability to pay people rates that are commercial and don’t necessarily fit with LA rates e.g. as a window fabricator there are no established pay rates as no other LA employees do this work

Lose job security (LA will always try to redeploy employees to alternative posts if Social Firm goes bust)

More flexibility to employ people i.e. short term contracts, fixed term, etc.

LA’s have a Fair Selection recruitment process based on scoring. This is an intellectual process that many disabled people would be unable to understand/compete on. This makes it impossible to employ disabled people specifically for certain role – private companies can do this and be more flexible in recruitment generally

Business Practice / Management

Less red tape generally

Gain commercialism and freedom to undertake entrepreneurial activities – can be flexible and able to react to market trends and business opportunities

Lose wealth of expertise from other LA departments

Not subject to the procurement and tendering rules that you have when spending public monies

Supplier negotiation to open new trade accounts harder outside large body (references/status not a problem within LA)

More flexibility in gaining contracts e.g. new work with private industry

Can drop the ‘caring’ label (detrimental to business/perception of stakeholders)

Can compete on level terms with other businesses i.e. they recognise you as a business not a day centre

Ability to make decisions quicker e.g. to start a new job, purchase equipment, obtain a new building or close non-profitable/workable areas – simplified decision making based on calculated risk rather than political gain