Audit Commission redundancy cheques 'could fund mutual'

REDUNDANCY PAYOFFS could be used to fund a mutual spun out of the soon-to-close Audit Commission, it has been suggested.

Commission chiefs could ask staff to contribute their redundancy cheques to help fund the project, which will be run under the company name DA Partnership, This Is Money reports.

One source said this "wouldn't be unusual", adding: "There are many management buyouts where people have used redundancy money and borrowed against future earnings - because it guarantees them an income."

DA Partnership was established on behalf of staff by Gareth Davies, head of audit at the commission, with a view to establishing an employee-led organisation in future.

Were such a company to spin off, it would be the fifth-largest auditor in the UK with a huge amount of public sector experience, leading some supporters to call it a credible challenge to Big Four dominance.