Agenda item

Report of Chief Executive

Purpose of report

This report presents the draft business case for a shared service and/or confederated approach to joint working and the delivery of local authority services following consideration by the three way Joint Arrangements Steering Group (JASG) on 27 November 2014.

Recommendations

1.1         Following a review by the Transformation Joint Working Group and agreement by JASG, it is recommended that Cabinet endorse the attached business case for options to deliver three-way joint working for consideration by Council with the following recommendations. 

1.2         Members are recommended, subject to South Northamptonshire and Stratford on Avon District Councils resolving in similar terms, to:

                      I.        Agree an ‘in principle’ move towards scenarios 2 and/or 4 as set out in the appended business case and its supporting papers.

                    II.        Agree that the appended business case is used as the basis for public, partner and stakeholder consultation and, subject to the outcome of that consultation not leading Members to a change of view, request that a full and final business case, taking account of the responses received to this consultation, is brought to the February 2015 Council meeting.

                   III.        Agree in principle and subject to consideration of consultation responses to include all services within the potential scope of joint working (as set out in the appended business case scenarios 2 and 4, section 6), subject to prior approval of individual business cases on a service by service basis

                  IV.        Agree in principle and subject to consideration of any consultation responses that any moves towards a confederated approach are undertaken on an incremental basis and that the first phase of services considered for inclusion are back office or support services.

                   V.        Request that additional tax and pensions advice is sought to ensure that any implementation costs associated with the confederation approach are fully quantified in any final business case.

                  VI.        Request that additional legal advice is sought to prepare governance arrangements including shareholders’ agreement and exit strategy to be included as an appendix to any final business case. These arrangements should also any transitional requirements (e.g. steering groups, joint committees to oversee the establishment of the confederation).

                 VII.        Request that a full organisational development strategy is developed for adoption to aim to ensure that Members and employees have the requisite skills to operate within a confederation approach should the final business case be approved.

Resolved

(1)          That following a review by the Transformation Joint Working Group and agreement by the Joint Arrangements Steering Group, the business case for options to deliver three-way joint working (annex to the minutes as set out in the Minute Book) be endorsed for consideration by Council with the following recommendations.

(2)          That, subject to South Northamptonshire and Stratford on Avon District Councils resolving in similar terms, Full Council be recommended to:

                      I.        Agree an ‘in principle’ move towards scenarios 2 and/or 4 as set out in the appended business case and its supporting papers.

                    II.        Agree that the appended business case is used as the basis for public, partner and stakeholder consultation and, subject to the outcome of that consultation not leading Members to a change of view, request that a full and final business case, taking account of the responses received to this consultation, is brought to the February 2015 Council meeting.

                   III.        Agree in principle and subject to consideration of consultation responses to include all services within the potential scope of joint working (as set out in the appended business case scenarios 2 and 4, section 6), subject to prior approval of individual business cases on a service by service basis

                  IV.        Agree in principle and subject to consideration of any consultation responses that any moves towards a confederated approach are undertaken on an incremental basis and that the first phase of services considered for inclusion are back office or support services.

                   V.        Request that additional tax and pensions advice is sought to ensure that any implementation costs associated with the confederation approach are fully quantified in any final business case.

                  VI.        Request that additional legal advice is sought to prepare governance arrangements for scenarios 2 and/or 4. This is to include arrangements such as a shareholders’ agreement and exit strategy and also the necessary transitional requirements (e.g. steering groups, shadow boards or joint committees) to oversee the establishment of joint working and/or confederation approaches. These proposals should be included as an appendix to any final business case.

                 VII.        Request that a full organisational development strategy is developed for adoption to ensure that Members and employees have the requisite skills to operate within a shared service or confederation approach should the final business case be approved.

The Chief Executive submitted a report which presented the draft business case for a shared service and/or confederated approach to joint working and the delivery of local authority services following consideration by the three way Joint Arrangements Steering Group (JASG) on 27 November 2014.

In introducing the report, the Leader advised Members that the business case had been endorsed by the South Northamptonshire Council (SNC) Cabinet and considered by the Stratford-On-Avon District Council (SDC) Cabinet who had resolved to recommend amended recommendations, which had been tabled. The Leader confirmed that there would be no amendment to the recommendations to Executive following the decision of the SDC Cabinet.

In considering the report, Members noted that at this stage they were recommending an “in principle” agreement towards scenarios 2 and 4 and that consultation on the business case commence. Executive agreed that it was important to continue being innovative and look at all options. Members noted that the Government had awarded funding to support the work which indicated that it was supportive.

Resolved

(1)          That following a review by the Transformation Joint Working Group and agreement by the Joint Arrangements Steering Group, the business case for options to deliver three-way joint working (annex to the minutes as set out in the Minute Book) be endorsed for consideration by Council with the following recommendations.

(2)          That, subject to South Northamptonshire and Stratford on Avon District Councils resolving in similar terms, Full Council be recommended to:

                      I.        Agree an ‘in principle’ move towards scenarios 2 and/or 4 as set out in the appended business case and its supporting papers.

                    II.        Agree that the appended business case is used as the basis for public, partner and stakeholder consultation and, subject to the outcome of that consultation not leading Members to a change of view, request that a full and final business case, taking account of the responses received to this consultation, is brought to the February 2015 Council meeting.

                   III.        Agree in principle and subject to consideration of consultation responses to include all services within the potential scope of joint working (as set out in the appended business case scenarios 2 and 4, section 6), subject to prior approval of individual business cases on a service by service basis

                  IV.        Agree in principle and subject to consideration of any consultation responses that any moves towards a confederated approach are undertaken on an incremental basis and that the first phase of services considered for inclusion are back office or support services.

                   V.        Request that additional tax and pensions advice is sought to ensure that any implementation costs associated with the confederation approach are fully quantified in any final business case.

                  VI.        Request that additional legal advice is sought to prepare governance arrangements for scenarios 2 and/or 4. This is to include arrangements such as a shareholders’ agreement and exit strategy and also the necessary transitional requirements (e.g. steering groups, shadow boards or joint committees) to oversee the establishment of joint working and/or confederation approaches. These proposals should be included as an appendix to any final business case.

                 VII.        Request that a full organisational development strategy is developed for adoption to ensure that Members and employees have the requisite skills to operate within a shared service or confederation approach should the final business case be approved.