Lord Hutton to Chair Coalitions mutual joint venture My Civil Service Pension

The former Cabinet minister Lord Hutton will this week be named as chairman of the first company to be spun out of Whitehall as part of the Government's vision to create a "John Lewis economy" of employee-owned businesses.

Lord Hutton will lead the My Civil Service Pension (MyCSP), an operation that manages the retirement funds of 1.5 million civil servants. As part of the transfer into a new ownership structure, staff will be handed 25 per cent of the firm. A private-sector partner will take a 40 per cent stake, while the Government will retain 35 per cent.

The move is predicated on cutting the public sector by creating more mutually-owned businesses.

What is not being said is that the civil servants working in MyCSP have taken industrial action in opposition to the proposals and do not endorse this privatisation by the back door.