This report was written in response to the proposed transfer of Birmingham City Council’s residential care homes into the hands of an independent trust, and contains a detailed analysis of the issues arising when such public services are transferred to independent trusts. The report contains market analysis of the conditions in which independent trusts must operate, and examines previous examples of such ventures in order to demonstrate the fundamental flaws and long-term economic insecurity of the trust option, and provides an evaluation of the options for in-house provision of such services. Commissioned by UNISON Birmingham Branch for Residents Action Group for the Elderly (RAGE) June 2000.